preserve your car insurance prices low when your tariff will increase – Fox Enterprise
Car insurance rates will rise in the coming year, but motorists can follow these steps to keep their premiums down. (iStock)
Recent data from the Bureau of Labor Statistics (BLS) shows that auto insurance rates have risen in recent months after falling amid the COVID-19 pandemic.
Motor insurance rates rose 16.9% in May, and the increase follows a 6.4% increase in April, according to BLS data released on July 13. In the midst of these rate hikes, there are several expert recommended tips that you can follow to make sure you are not overpaying and to help you get cheap auto insurance.
In order to compare how much you are paying for your car insurance, it is helpful to know the average cost of car insurance. The average insurance costs of a medium are currently–According to Andrew Latham, managing editor at SuperMoney, a platform that connects consumers with certified personal financial advisors, a limo with fully comprehensive insurance was $ 1,245 in 2020.
"Your best auto insurance rate is based on several factors such as your age, the car you drive, your credit history and where you live," said Latham. "So the only reliable way to tell if you have good auto insurance is to compare your current coverage with multiple carriers. Just make sure you are comparing apples to apples and using the same coverage."
If you are looking for new auto insurance, visit Credible, where you can compare multiple auto insurance companies and quotes at the same time, and see your personal rates.
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When looking for ways to lower your car insurance rates, here are four tips to keep in mind:
- Compare multiple car insurance providers
- Look at your deductible
- Work on your creditworthiness
- Be careful what you are doing to lower your rate
1. Compare several car insurance providers
Loyalty doesn't pay off when it comes to lowering your auto insurance rate, and browsing and comparing options can be a great way to lower your auto insurance premium.
"Most people who switch carriers find better tariffs," Latham said. "However, low rates are not everything. While it is wise to compare multiple offers to find low premiums, you also want a carrier with fair and fast claims handling and great customer service."
You can find cheap auto insurance in minutes by visiting Credible. There you can enter your basic information and coverage preferences to view quotes from multiple auto insurance companies.
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2. Take your deductible into account
Opting for a higher deductible can be an easy way to significantly reduce your monthly car payments. In fact, increasing your deductible from $ 500 to $ 1,000 can lower your insurance premium by 10%. Drivers can also give up other additional insurance options to lower their premiums.
"Consider taking out full coverage and collision insurance if you have an older car," Latham said. “A good rule of thumb is to discontinue additional coverage (collision and fully comprehensive) if your annual premium is 10% or more of the car's Kelly Blue Book value. For example, if you pay $ 1,500 a year in auto insurance and your car is $ 10,000 worth of car, you should probably forego additional coverage. "
Other extras drivers could remove from their policy include medical payments and personal injury protection. These could be good in the event of an accident, but health insurance could already cover them. Drivers who have a second car or who rely on public transport may also want to forego a rental refund. Often times, household or even tenant insurance will also cover some of these extras.
3. Work on your creditworthiness
Aside from a clean driving report – either from the absence of accidents or from a defensive driving course – there are other records that come into play in determining your auto insurance premium. In some states, your credit rating can help you get a better price, so improving your credit rating can help you get auto insurance. This applies to all states except California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah, which prohibit or regulate the use of credit scores by auto insurance carriers, Latham explained.
But it's important to note that buying auto insurance doesn't affect your creditworthiness, Latham said. Auto insurance companies use a soft query, which means the check will show up on your credit report but will not affect your score.
To make sure you have the cheapest auto insurance available, do your research and compare several insurance companies to find the best rate. You can visit Credible and compare multiple providers at the same time and see your potential auto insurance without affecting your creditworthiness.
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4. Be careful what you are doing to lower your rate
While there are a few different ways you can get car insurance discounts, there are areas where cutting your insurance coverage is not advisable – such as personal injury liability insurance – as doing so can be detrimental in the long run.
"Don't skimp on liability insurance," Latham said. “Drivers who don't have as many assets to protect may be tempted to stop liability insurance altogether. Remember, however, that if you are to blame in an accident, your wages could be forfeited. I recommend a minimum of $ 100,000 per person, $ 100K for property damage, and $ 300,000 per incident. "
There are several ways to save on your auto insurance premium, including comparing multiple auto insurance offers, increasing your credit score, and reducing unnecessary extras. Often times, veterans and military personnel can also get a discount, so check with your provider. Additionally, teenage drivers usually pay more for their insurance but can get special offers like a good student discount.
To see what kind of auto insurance discounts are available to you, start today by visiting Credible to receive your free auto insurance quotes.
Do you have a finance-related question but don't know who to contact? Email The Credible Money Expert at email@example.com and your question may be answered by Credible in our Money Expert section.