Auto insurance is a cost that we all must incur if we wish to have our vehicles on the road. What many don’t realize is that there are a variety of ways to lower the cost of auto insurance premiums. There are many factors that can affect your premium, meaning there are many ways to reduce your premium based on your behavior and habits.
Here are seven ways that can potentially lower your auto insurance premiums:
- Reduce Your Coverage Collision coverage provides enormous benefits if you’re involved in an accident while driving a newer automobile, but for older cars and trucks, it might not be worth it. If you are driving an automobile that is worth less than $3,000 in its current condition, you may benefit from no longer having collision coverage on it.
- Grouping Insurance Policies
Many insurance companies offer discounts if you get multiple policies, like your auto and home or renters insurance, from them. By bundling your insurance plans, you can often lower your premiums by up to 7% through a multi-line discount.
- Raise Your Deductible
Your deductible is the out-of-pocket cost that you pay when you make a claim. For most of us, auto insurance claims come few and far between. It’s a good idea to raise your deductible if you can afford a higher out-of-pocket cost when you make these claims. The savings that add up through years of lower premiums can easily outweigh the one-time cost of a higher deductible. If you don’t regularly make claims on your auto insurance, raising your deductible can be a good way of lowering your premium.
- Track Your Mileage
How often you drive your automobile contributes to the cost of your insurance premium. The more your car or truck is on the road, the more likely it is to be involved in an accident. Many people simply estimate how many miles they put on their car in a year, and it is important not to overestimate. By tracking your mileage, you can give the insurance company a concrete number of miles that you drive in a year. Also, if you have recently replaced your automobile and now use it as a secondary vehicle, then you are not putting as many miles on it. Contact your insurance agent and update them on the annual mileage of your, now, secondary vehicle.
- Drive Carefully
This is one that most of us are aware of already. A safe driving record with no traffic violations lends itself to lower insurance premiums. Avoid speeding, and be a defensive driver by staying aware of other drivers on the road to help reduce the risk of accidents and traffic violations. Your insurance company will reward you for your safe driving habits.
- Improve Your Credit Score
Your credit score factors into the cost of your insurance premiums. While there may not be a way to measure the risk of getting into an accident, many insurers use it because it has been shown there is a direct correlation between how an individual manages their credit and whether they will file a claim. By eliminating credit card balances, paying bills on time, and practicing other sound financial habits, you can raise your credit score and lower your insurance premiums.
- Anti-Theft and Safety Features
Make sure your insurance company knows about the anti-theft measures and safety features of your automobile. By parking in a garage, you reduce the risk of theft, which can lower your premium. You can also install a car alarm or an ignition cutoff switch to lower the probability of theft. Added safety features such as a backup camera, electronic stability control, anti-lock brakes, air bags, and automatic seatbelts can also help to lower your premium.
Talk to a Yetter Insurance agent today to find out how you can lower your auto insurance premium. For more information, please contact Yetter Insurance Agency at our Milford office. Visit www.yetterins.com or call 570-296-8329.
Source: https://www.erieinsurance.com/auto-insurance/discounts/insurance-discounts
