Here are some ways to reduce your car insurance costs as gas prices rise and insurance premiums increase. In 2022, insurance premiums have proven to be much more expensive. The raised premiums have increased from 3 to 12%. And while the constant rise in prices of goods and services across the US continue, employee wages aren't quite keeping up.
The skyrocket of inflation has been the main reason for these rate increases and driving is more expensive that it has been in a long time due to higher auto insurance rates and record-breaking gas prices. Yet, there are many ways to save money despite the rising insurance costs.
Here are some simple ways you can reduce your expenses on rising costs by saving you on car insurance:
1. Bundle your Policies to Save on Car Insurance
Bundling your auto and home insurance is a great way to save on car insurance. This means you can buy multiple policies from one company and pay less for each of them, bundled together, than if you purchased them separately.
Richard Dean Insurance offers premium discount codes for bundling - depending on the policies and coverages that you purchase together. Our expert agents can help to save you big time on car insurance and may even offer discounts ranging from 5% to 25% on your premium.
2. Safe Driving Discounts can Help you Save on Car Insurance
You're in luck if you are a safe driver, as this can really help to save on car insurance. You can get discounts from your carrier for safe driving or having a low claim history. There are also a variety of discounts you can take advantage of.
There are a few carriers for car insurance that can help you save big in a great way for safe drivers to get discounts and low-mileage savings. These programs track your driving habits and mileage using a smartphone app or a plug-in device. While discounts may vary depending on your state and carrier, you might be able to get savings up to 30% on your premium.
The base rate you will pay will change depending on what the telematics report will show. This will include factors such as your average speed and brake habits, but over all is an excellent way for qualifying drivers to save on car insurance.
3. Buy a Cheaper Car to Save on Car Insurance
You can compare the insurance costs for different cars if you are looking to purchase a used or new car. Here are a few examples of auto insurance premiums calculated using a variety factors. Some of these factors are based upon the car itself including its price, repair costs, and overall safety record.
One expert was quoted saying that people often forget: You could buy a Honda, a Kia, and they're cheaper, which will by default save you money on car insurance - or you could purchase a Mercedes, or a Tesla, but it's going be more expensive.
It is striking how much more expensive insurance is for a Mercedes-Benz than for a Honda. The average cost on a 2019 Mercedes-Benz insurance is around $4,201 annually compared with an average of $2,151 per year for a Honda. This means that you will pay $179 per month for the Honda, and $350 for the Mercedes.
4. Increase your Deductible to Save on Car Insurance
Your premium can be reduced by increasing your deductible, which is your out-of pocket cost before your insurance pays the bill for a claim. If you don't drive a lot, haven't had any accidents, or need to lower your monthly insurance costs, this move may be a good idea to save on car insurance.
However, this could lead to higher costs later in the event of an accident and you'll need to pay more before your insurance company covers any damages. If you are in an accident, you should ensure that you have enough money to cover the higher deductible.
5. Consider Less Coverage to Save on Car Insurance (if you own an older vehicle)
Older cars might not be eligible for the same insurance coverage as a shiny new Tesla, or the luxury of a Mercedes-type policy. That said, you may be able to reduce collision coverage and comprehensive coverage for your vehicle if it is in its final year, which will save you on car insurance.
The value of your vehicle and the cost of insuring it will determine whether you should cancel or not. Experts recommend that you do not purchase coverage for a vehicle that is less than 10x the annual premium.
Scrolling through Kelley Blue Book online is a quick way to determine the car's value. Let's say that your annual premium is $1600. 10 times that would equal $16,000. It might be a good idea to reduce your insurance coverage if your car is less than $16,000 - just one more way to save on car insurance.
For more insight on how to save on car insurance, what other types of insurance options are available to you, or to bundle services for even more pocket change, click here for more articles or give us a call to speak to an expert agent today: (941) 999-3131