Rising Car Insurance Premiums? Here’s How to Reduce Your Premium
By Are you feeling the pinch of rising car insurance premiums?[0] You’re not alone. Bankrate’s annual True Cost of Auto Insurance Report revealed that the average cost of full coverage auto insurance has hit $2,014 a year nationally, up nearly 14% from last year.[1]
Price was the primary factor for most Americans thinking about switching auto insurance providers, according to a survey conducted by AnalyticsIQ, a data company.[0] AnalyticsIQ reported that those who deemed their auto insurance policies “very affordable” expressed greater satisfaction levels than those who said it was “way too expensive,”[0]
While inflation is one impact on prices, it’s not the only factor.[2] Research conducted by AnalyticsIQ has revealed that, despite its limited uptake, there is growing interest in embedded insurance – a type of insurance that is combined with the purchase of a product (e.g. a car).[0]
If you’re looking to reduce your premiums, there are several options available.[3] Forte said ways to try to lower your premiums are by considering the type of car you buy, shop around for insurance providers, and also discuss options with your current insurance provider.[4] Be sure to capitalize on the various discounts offered by businesses.[2] You could also switch to a new provider to lower your monthly premium. On Credible, you can compare multiple car insurance providers without impacting your credit score.[0]
You could also take a defensive driving course to qualify for a discount.[5] And if the teenager on your policy goes away to boarding school or college and can't drive your car, your insurer may offer a “student away” discount.[6] Or if they attend school full-time and get good grades through age 24, that may save you a few bucks, too.[6]
If you’re unhappy with your premium, shop around and see if another insurer will give you a better deal, especially if you have a great driving record. “Every company uses a different algorithm to determine rates,” said Cate Deventer, Bankrate’s insurance analyst.[3]
If your insurer does not furnish you with a comprehensive list of choices, request to view what options are accessible to you.[4] You may be able to save money on your auto insurance even in the face of rising prices.
0. “Price is top reason why consumers want to drop auto insurance providers” FOX 10 News Phoenix, 31 Jan. 2023, https://www.fox10phoenix.com/money/price-top-reason-consumers-drop-auto-insurance-providers
1. “Another inflation pressure point for Americans: Car insurance” CBS News, 6 Feb. 2023, https://www.cbsnews.com/news/auto-car-insurance-costs-national-average/
2. “Paying too much for auto insurance? We compare prices to help you save” ABC15 Arizona in Phoenix, 30 Jan. 2023, https://www.abc15.com/news/let-joe-know/paying-too-much-for-auto-insurance-we-compare-prices-to-help-you-save
3. “Inflation may be falling — but not the cost of your car insurance” ABC17News.com, 6 Feb. 2023, https://abc17news.com/news/2023/02/05/inflation-may-be-falling-but-not-the-cost-of-your-car-insurance/
4. “Car insurance premiums are expected to increase this year” KING5.com, 2 Feb. 2023, https://www.king5.com/article/news/local/car-insurance-premiums-increasing/281-66ba60e4-8084-4e1a-bf28-f8ffa1f77d7d
5. “How to Get More Affordable Car Insurance” Yahoo Finance, 28 Jan. 2023, https://finance.yahoo.com/news/more-affordable-car-insurance-175933407.html
6. “Inflation may be falling — but not the cost of your car insurance” erienewsnow.com, 6 Feb. 2023, https://www.erienewsnow.com/story/48314151/inflation-may-be-falling-but-not-the-cost-of-your-car-insurance
