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Auto insurance rates spiking; how to save money now

An alarming rise in auto insurance premiums hitting drivers, in some cases up 10-20%. There are some ways to cut your rates shaving hundreds of dollars off your bill every month.

Blame the escalating costs in part on the lingering effects of the pandemic. When drivers hit the road again, a spike in fatalities followed. “Everyone forgot how to drive and that meant more insurance claims,” explained Leslie Kasperowitz, Managing Editor at insurance.com. Supply issues drove up the cost of repairs for today’s high tech vehicles.

Add to that severe weather not just affecting homes, but cars as well. “A lot of cars get damaged; hail damage can cause a total loss,” said Kasperowitz.

But there are a number of things you can do to get a better insurance rate. “Shopping around is always the first cause of action,” recommends Kasperowtiz. She recommends getting three to five comparison quotes. You could save thousands of dollars.

“Every insurance company has own their algorithm for determining rates and those change every couple years,” said AAA Alabama’s Clay Ingram. You could also raise your deductible, but be sure you can afford to pay it if there is an accident. Bundling your car and home insurance adds up to another big discount.

Make sure you are getting all the discounts you deserve for things like good credit and good grades. “If you have a young driver who is a good student, that’s about a 25 percent discount,” explained Kasperowitz.

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Insurance companies offer drivers usage based trackers that watch your habits on the road. Good drivers can see a rate cut. But bad habits like sudden stops and turns or speeding can put you in a higher rate.

Recent reports revealed internet enabled features on a vehicle like navigation and car apps can be secretly tracking you. That information shared with data brokers can also boost rates.

On average, Alabama auto insurance costs $2,207 per year for full coverage. Experts warn don’t cut coverage to save money. Cars are expensive these days and you don’t want to be underinsured.

Uninsured motorist coverage is important to cover you if someone without insurance hits your vehicle. It’s recommended you keep that in your policy.

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