Here’s How You Can Lower Your Auto Insurance Premiums
Car accidents are among the leading causes of death in the U.S, with a majority of the victims being 30 years and younger, according to the Center for Disease Control and Prevention (CDC). For example, in 2018 alone, more than 6 million cars in the U.S. were involved in road traffic crashes, leading to about 40,000 fatalities, as reported by the National Safety Council (NSC). Besides fatalities, car crashes also cause bodily injuries and property damage, with insured losses amounting to billions of dollars every year, according to a recent study by the National Highway Traffic Safety Administration (NHTSA). It is worth noting that a bad driving record will lead to higher auto insurance premiums. Some other factors that impact your premiums include your age, motor vehicle record (MVR) score, gender, and amount of coverage.
With that in mind, here are five effective ways to lower auto insurance premiums.
1. Raise Your Auto Insurance Premium Deductible
The Insurance Information Institute (III) recommends raising your auto insurance deductible if you intend to lower your auto insurance premiums. This is because the deductible is the amount you pay out-of-pocket when you file an auto insurance claim before the insurance company settles the rest of your bill. Thus, if you pay more out of pocket, the insurance carrier will have a smaller amount to pay, and therefore, your auto insurance premiums will be lower. Although this is a good way to lower your premiums, it means higher out-of-pocket costs if you’re involved in a car crash.
2. Build a Good Driving History
On average, about 30 people die every day from alcohol-related car crashes in the U.S., as reported by the National Highway Traffic Safety Administration (NHTSA). Take note that traffic violations and convictions, such as DUI, will cause your auto premiums to rise. To avoid this, maintain a good motor vehicle record (MVR) score by adhering to the traffic rules and driving while sober.
3. Keep Your Car in Good Shape
To determine the cost of your auto insurance policy, your insurer will typically evaluate the risk associated with the policy. If your car is in good shape, expect to pay lower auto insurance premiums and vice versa. This is because a well-maintained car is less likely to crash or cause an accident due to mechanical failure.
4. Bundle Your Policies
Loyal customers typically contribute to a company’s long-term profits, as reported by the Harvard Business Review journal. For this reason, most companies have loyalty programs that aim at retaining customers by offering rewards such as discounts, free samples, and fun days. Hence, your insurance provider will most likely give you a discount on your auto insurance premiums if you purchase other policies from them. In other words, buy your home insurance, health insurance, life insurance, and business insurance policies from the same insurance provider to earn a discount on your auto insurance premiums.
5. Buy a Cheaper Insurance Policy
In 2019 alone, there were more than 5,900 insurance carriers in the U.S., with each provider offering different terms on their insurance policies, as reported by the National Association of Insurance Commissioners (NAIC). This means you can probably find a cheaper insurance package from a different insurer. If you want to lower your auto insurance premiums, consider shopping around for a low premium auto insurance policy.
To enjoy low premium auto insurance, follow these five tips. If you have any more questions regarding car insurance, contact the experts at Remland Insurance in Orange, California. We are ready to assist you with all your insurance needs today.