Car insurance costs keep climbing, and even good drivers may be paying hundreds more than they did just a few years ago. Consumer Reports says there are several proven ways to lower your premium without sacrificing the coverage you need.
The average driver now pays nearly $2,700 a year for car insurance, but shopping smarter can make a difference. One of the best places to start is with an independent insurance agent, who can compare coverage and premiums from multiple companies. Since rates vary widely, it pays to shop around.
You may also be able to save by raising your deductible. That means you’ll pay more out of pocket if you need repairs, but your monthly or annual premium could go down. Just make sure the deductible is an amount you could afford if something happens.
For older cars, Consumer Reports says it may be worth reconsidering collision and comprehensive coverage. Collision helps cover damage from crashes or hit-and-runs, while comprehensive covers things like storm damage, theft, and fire. CR auto expert Keith Barry says that as a general rule, if the premium is more than 10 percent of the car’s value, it may be time to consider dropping collision—and possibly comprehensive, too.
Bundling can also help. Many insurers offer discounts when you buy both home and auto policies from the same company. Taking a defensive driving course may lower your bill as well, though you may need to repeat the course every few years to keep the discount.
Another option is signing up for driving monitoring. Some insurers offer savings if you allow them to track your driving habits through a smartphone app or a device that plugs into your car. The savings can be significant, but Consumer Reports says drivers should be comfortable with the privacy trade-off.
Finally, think carefully before filing a claim for minor damage, especially if no other driver is involved. Paying out of pocket for a small one-car fender bender could help you avoid a future rate increase.
Consumer Reports also says life changes can affect your premium. If you’ve gotten married, divorced, experienced a death in the family, or no longer have a teen driver on your policy, make sure your insurer knows. Removing a teen driver alone could save some families up to $2,000 a year.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.