Whether you are looking for the best deal or want to find out how to save on auto insurance, there are a few things you can do to help you cut costs. The key is to track your time behind the wheel and bundle your coverages. In addition, increase your deductible and avoid comprehensive coverage on vehicles that are not worth much.
Track your time behind the wheel
Having an app or a device that tracks your mileage and reroutes you on the fly can save you a ton of money. Not only will you be less likely to get into an accident, but you'll also be able to make better use of the time you have. The best part is that these programs are optional.
Most insurance companies have at least one telematics program, if not several. These apps typically have dashboards or widgets that display all the pertinent statistics. They can also give you a small discount for installing the app on your car. However, you'll be more likely to see this particular prize if you drive a relatively clean vehicle. Having a clean vehicle can also mean fewer claims, which means a reduction in your premiums.
The best telematics programs will also have an award-winning app. The most notable example is the MyAdvantage program from Allstate. They provide the aforementioned app, as well as detailed route data and rewards for completing a variety of challenges.
Several other companies have similar apps. The State Farm i-Drive app uses Bluetooth technology to track your mileage, while the Allstate Drivewise program tracks your drives via an app on your smartphone. Both programs offer discounts for the right tidbits. A smartphone is the logical choice for this type of mobile tracking. This is not to be confused with a GPS enabled car, which is another story.
Aside from the aforementioned best telematics programs, there are a handful of other options that a consumer can consider. These include the aforementioned TD Insurance and AIG apps, as well as the Snapshot and MyAdvantage from Progressive. A quick Google search will reveal many more companies that have similar offerings. If you're shopping around, be sure to ask about all the options and be sure to compare rates and benefits to find the program that's right for you. You'll be well on your way to savings in no time! The best telematics programs are not for everyone, but there are plenty of viable alternatives for those interested in the safety and convenience of auto insurance.
Bundle your coverages
Buying insurance coverage from several companies is a great way to save money. The average discount for bundling auto and home coverage is about 17%. However, it's important to compare discounts before deciding to bundle your coverages.
The best way to determine overall savings is to look at the total premium and the discount you are offered. For example, if you're looking at car insurance quotes, add up the premiums from each company and subtract the discounts. If the total premium is lower than the discount, you will likely have saved a considerable amount.
When shopping for insurance, it's important to consider features, customer service, financial strength, and insurance rates. By comparing the various features and services of different companies, you can find the best one for you.
If you have a good credit score, you'll be able to take advantage of lower rates. Similarly, if you're unhappy with your current provider, you may be able to switch to a new company that offers better rates. You can then get new quotes from multiple companies and see if you can qualify for a discount.
In many cases, the easiest and most affordable option is to bundle your insurance policies. Whether you're looking for auto, home, or life insurance, you can usually find a company that will offer you a discount. You'll also need to be comfortable with the company you choose.
Besides saving money, bundling your insurance policies can make managing your policy easier. You'll reduce your exposure to other insurance agents, customer service reps, and hassles that are common in the insurance business. It can also help you avoid coverage gaps and build a strong relationship with your insurer.
You can even use a free risk report tool to help you compare insurers and custom-tailor your coverage to meet your needs. You can review the top risks in your neighborhood and identify the most common issues. This tool will help you find the best rates, and you can then shop for policies based on your risk rating.
If you're looking for a competitive price, you'll need to research multiple companies. If you're unhappy with your current insurance company, you can request quotes from multiple companies and choose a new one. By comparing prices, deductibles, and features, you can ensure you're getting the coverage you need for the lowest price possible.
Increase your deductible
Increasing your deductible is a great way to save money on your auto insurance premiums. But you need to be sure you can afford it. It is also a good idea to have some emergency savings laying around. You can then dip into this fund when you need to cover a high deductible claim.
Depending on your state, you can save anywhere from four percent to 28 percent on your premiums. You should compare your deductible to what others are paying to see if you can come out ahead. It's a good idea to ask your insurance agent for the best rates and options.
You should also consider other factors that may be driving up your insurance costs. Your credit score is a major factor in setting your rates. If you aren't paying attention to this, you could end up paying a lot more for insurance than you should.
If you haven't made an insurance claim in years, it may make sense to increase your deductible to save on premiums. However, this isn't always the case. Having a higher deductible can make you feel more responsible for any claim you do make. And if you have a tight budget, it's possible that you'll have to wait longer to get reimbursed.
You can also save on your insurance by switching companies. For example, drivers in South Dakota save about a third of their monthly premiums. Alternatively, if you are a high-risk driver, you may be able to lower your premiums by raising your collision or comprehensive deductible.
A higher deductible will also allow you to avoid having to pay for repairs out of pocket. This is especially true if you are in a state with frequent hail or crime.
If you aren't sure what the best deductible for your needs is, check with your insurance agent. They will be able to recommend a deductible that suits your budget and your needs.
You may not have the financial wherewithal to increase your deductible, but it's worth a look. If you can, it will save you a lot of money in the long run.