5 Methods To Cut back Automobile Insurance Prices – CNET

Now is a good time to rethink your car insurance policy.

Getty Images

the Covid-19 pandemic led to a drastic reduction in transportation of all kinds. Between lockdowns, quarantines and social distancing protocols, far fewer people flew and drove, and despite increasing numbers of vaccinated people, we still have to hit pre-pandemic travel levels.

Auto insurers responded to the pandemic with discounts and rebates, but now more people are on the move again, rethinking theirs Car insurance Cover. Even in the absence of a pandemic, buying auto insurance is good for your wallet – the cost of auto insurance can vary widely, and you can negotiate your coverage.

There are also many factors to consider. Perhaps you've just bought a new car and want to make sure your insurance covers damage from a collision. Perhaps you've taken a defensive driving course and want to see if your premium goes down. Perhaps you work from home all the time and need less coverage. Or maybe you had an accident at fault and your premiums can no longer be managed with your current provider. All of these are good reasons to reach out to your auto insurance company and ask about your options – as well as calling other companies to see what savings they can offer.

Important to know, even if you are working remotely permanently: Do not cancel or interrupt your insurance if you are still driving – even if it only happens occasionally. Driving without insurance is illegal. And trying to resume a policy after it has been terminated can lead to even higher premiums.

So are you ready to save? Here are five great steps to save money on your auto insurance.

1. Start the comparison

While life is slowly returning to normal in the United States, it is still a great time to poke around. Your insurer is likely to consider its own discounts and promotions, but that shouldn't stop you from browsing – other insurance carriers may offer even bigger discounts, more relief options, or lower premiums. Check out CNET's summary The 10 best auto insurances for 2021 to get a better idea of ​​your options.

2. Call and ask

Insurance companies understand that the pandemic has changed the way many people drive cars. They also understand that many of their customers are having financial problems and may be ready to provide assistance.

"Insurance carriers recognize this is a difficult time and in response, many have offered credit, refund, premium adjustment, or premium reduction for a specified, specified period of time," said PJ Miller, Independent Insurance Agent, Wallace & Turner Insurance.

This is how you can reach some of the leading insurance companies to inquire about possible discounts and reliefs.

If you get auto insurance with any of these companies, double-check that you are taking advantage of all of the programs available.

3. Update your driving information

Many of the factors that affect the price of auto insurance are relatively fixed, including your driver's license, where you live, and your creditworthiness (in each state). But some are variable – for example, how many kilometers you drive per day. If you drive a car less often than before, you can reduce your premium.

The more you drive a car, the more chances your insurance company has of being in an accident. If you've switched from commuting to work from home during the pandemic, your lower weekly mileage may translate into a lower premium.

Note: Whenever you make changes to your declared mileage (or any other component of your insurance profile) it is important to update your policy. Inaccurate or outdated information about a policy can adversely affect claims.

4. Increase your deductible

To change your deductible can lower your premium, but can also cost you more in the long run if you are in a car accident. The average policy has a deductible of $ 500 – which means you'll have to pay $ 500 out of pocket before the insurance takes effect. If you increase your deductible to $ 1,000, you can reduce your monthly premium. It can be worthwhile, especially if you don't drive a lot at the moment.

5. Combine insurance

Many insurers offer more than one type of insurance and give discounts to customers who buy multiple policies. If you bundle policies for a house or a boat, you may get a lower rate each. Allstate, Liberty Mutual, and GEICO every offer premium Discounts for bundling – depending on which policies and covers you buy together.

The editorial content of this page is based solely on objective, independent reviews by our authors and is not influenced by advertising or partnerships. It was not provided or commissioned by third parties. However, we may receive compensation if you click on links to products or services from our partners.

Comments are closed.