Nobody wants to pay more for auto insurance than they need to, but with so many carriers and coverages available, trying to find the best deal can feel overwhelming. Plus, you may want to avoid settling for the cheapest auto insurance you can find, as that could leave you with a lack of protection. No matter what type of insurance you need, there are ways to maintain an ideal insurance policy while saving some money simultaneously. Here are six ways to potentially help yourself save on car insurance in 2024.
Key Takeaways:
- According to the U.S. Bureau of Labor Statistics, motor vehicle insurance increased 20.6% from December 2022 to December 2023.
- Comparing insurance quotes from multiple providers before renewing your policy could help you find and secure the best rates.
- Depending on your car’s value, phasing out certain coverages, such as comprehensive or collision coverage, could help reduce insurance costs.
1. Shop Quotes Regularly
One of the easiest ways to ensure you’re getting the best deal on your auto insurance is to shop for insurance quotes every year or two. If you’ve been with the same insurance provider for some time, you may be missing out on lower coverage costs from other carriers.
Insurance companies use various factors to set their premiums, so some may weigh certain factors more than others. However, when comparing quotes, always select the same coverages, limits, and deductibles for an accurate comparison. And don’t worry—if you find a better deal, switching auto insurance providers isn’t as difficult as it may seem.
At AIS, we make comparing quotes from our network of trusted insurance partners easy. Visit here to get started on your free auto insurance quote today.
2. Don’t Forget About Auto Insurance Discounts
Comparing car insurance quotes isn’t the only way to save on car insurance premiums. A common insurance mistake customers make is failing to take advantage of discounts many providers offer. If you didn’t know, most carriers offer a handful of discounts you may qualify for by simply being you. When updating or renewing your policy, always ask if you are eligible for any discounts you may not know about.
Although they can vary depending on where you live and who your provider is, typical auto insurance discounts include:
- Bundling discounts for those who bundle their residential and auto insurance policies with the same provider.
- E-bill or autopay discounts for those with specific account settings.
- Good driver discounts for individuals who haven’t been involved in any accidents for a set period.
- Pay in full discounts for policyholders that cover their premium in full instead of installments.
- Defensive driving course discounts for drivers who complete a defensive driving course.
- Association discounts for members of professional organizations or memberships such as AAA, Costco, Sam’s Club, and more.
- Telematic usage discounts for drivers who opt-in for programs that track their driving habits.
- Good student discounts for full-time students who maintain a “B” grade point average or better and are under 25 years old.
3. Increase Your Deductible
Your policy will include a deductible when you carry coverages such as collision or comprehensive insurance. $500 is a typical standard for most coverages, but they can range anywhere from $100 to $2,000, depending on your carrier. Regardless of the amount you select, knowing how your car insurance deductible can help you save on your premium is important.
When you increase your deductible, it could result in a lower coverage rate. On the other hand, when you lower your deductible, you could set yourself up for a higher insurance premium. Think of deductibles as a tradeoff:
- High deductible = higher out-of-pocket expenses with a lower insurance rate.
- Low deductible = lower out-of-pocket expenses with a higher insurance rate.
You must settle your deductible when you file a claim through your collision and comprehensive insurance provider. Because of this, you should only consider increasing your deductible if you can afford the higher amount in the event of a claim.
4. Skip Comprehensive and Collision Coverage If You Drive an Older Car
It’s essential to carry enough car insurance to protect you across a wide range of scenarios. However, if you drive an older car, some coverages may cost more than what you’ll receive after a claim.
Collision insurance will cover repair or replacement costs (up to your policy’s limits) if your vehicle is damaged from an accident with another car or object. Comprehensive coverage will cover repair or replacement costs (up to your policy’s limits) if weather incidents, vandalism, or theft damage your car. Although these coverages are great to have, their maximum payout is limited to your car’s actual cash value or the amount it was worth immediately before the accident.
If you own an older vehicle, always compare the cost of these coverages to the cost of your car. Carrying collision and comprehensive coverage is typically a good idea for newer vehicles. However, if your car is worth low market value, it may not make sense to carry additional coverage apart from any state requirements.
5. Compare Insurance Costs Before Purchasing a New Car
Car insurance rates are based on several factors, but your car’s value has a lot to do with your overall rate. An expensive sports car equipped with special parts will be more expensive to insure than a mid-level compact sedan.
If you’re in the market for a new car, begin shopping around and comparing potential insurance costs based on the vehicle model you select. Although this won’t lower your current premiums, it will give you a better understanding of how your insurance costs may change with a new vehicle purchase.
6. Bundle Several Coverages with One Provider
You can often receive a discount for bundling different insurance coverages with the same company. Chances are high that your auto insurance provider also offers different types of insurance, such as residential insurance. In most scenarios, you can save on your premium if you bundle your car insurance with your homeowners or residential insurance provider. In addition, having multiple policies with the same company can also help to provide you with a discounted rate. However, we still recommend comparing quotes regularly, as bundling may not guarantee you get the best rate possible.
AIS Can Help You Search
To be clear, there are many actions you can take that can affect how much you pay for car insurance. Still, there’s no guarantee that these methods will automatically save you money on your premium, especially if you already have a competitive rate. But there is a chance that a couple of these methods can help you save on your overall car insurance costs.
At AIS, our insurance specialists can help you navigate the insurance marketplace. We work with a variety of trusted insurance providers and can help you compare quotes in just a few minutes. With over 55 years of experience helping our customers find and secure insurance policies, our specialists know just what to ask to find your ideal combination of coverage and price. If you’d like to learn more about how AIS can help you, give us a call at (888) 772-4247 or start your free quote online.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
