The economic impact of COVID-19 is being felt everywhere — even in the insurance industry. Since 2020, American drivers are paying 17% more for automobile insurance.
Additionally, some states are more expensive than others. Drivers in Hawaii enjoy the lowest car insurance rates in the country, while drivers in Michigan pay the most. Although location plays a role in insurance rates, drivers can still use different strategies to save money.
To learn more about the best methods for auto insurance savings, check out the guide below.
Strategies for Auto Insurance Savings
There are some factors that affect car insurance rates and can’t be changed. Drivers cannot influence how factors like age or past driving history affect their insurance expenses, but the secret to car insurance savings is knowing what to ask.
Refer to the Car
There are specific types of cars that cost more money to insure. Sports cars and luxury cars, like a Lexus or Tesla, are among the most expensive. Basic models, like a Honda Pilot or a Ford Escape, are among the least expensive.
The feature of the car can also add costs or reduce them. Some of these features include:
- Eco-friendly vehicles
- Safety equipment
- Anti-theft devices
- Age of vehicle
Vehicles less than three years old may be eligible for a new car discount. Additionally, some insurance companies offer discounts for safety equipment like dual airbags or anti-lock brakes. The only way to know what your company offers is to call and ask.
Mention Your Record
A pristine driving record is a logical reason for car insurance discounts. If the driver presents less risk, they should be rewarded for it. These are often referred to as “good driver” discounts.
Each insurance company has their own definition of a “good driver.” Usually, however, a good driver will have been accident-free or traffic violation-free within the past three to five years.
Also, pursuing further driving education, like taking a defensive driving course, can provide additional discounts.
Some insurance companies have affiliations with other organizations. These discounts may apply to:
- Alumni of specific universities
- Federal government employees
- Military employees
- Military veterans
Furthermore, university alumni of certain Greek organizations or professional organizations may be eligible for more discounts.
Policy discounts are among the easiest discounts to earn. For example, some insurance companies offer a discount for customers who set up automatic payments.
Insurance companies may also offer a discount to a customer who pays for their entire policy upfront. Some customers get discounts just for choosing paperless statements.
There are a few discounts that don’t seem as relevant to the car insurance industry. For example, there are types of auto insurance that have discounts for full-time students with good grades or general homeowners.
Talk to an Insurance Agent
The key to auto insurance savings is communicating with your insurance agent. The company must be made aware of these factors to apply the discounts to your policy.
To speak with a professional insurance agent and get expert insight into these discounts, contact us today.