6 Ways to Save Car Insurance in 2021

Boon Chai Wed Mac

People are driving again. analysis Apple has announced that mobility has improved significantly since last year, when the blockade of COVID-19 was much tighter in the United States. With the school year in full swing and many employees returning to the office, many are traveling and driving more.Some insurance companies Premium reduction and discount offer During the pandemic, Insurance Information Association, As the world slowly returns to normal, some experts predict Soaring car insurance costs.

If you drive more, your car insurance premiums may be increasing. However, there are many ways to keep your money in your pocket. Here’s an overview of how to mitigate the increase in insurance costs:

1. Increase the deduction amount

Your increase Deductible You can lower your insurance premiums. In other words, claiming insurance will increase the amount you have to pay at your own expense before the insurance plan starts paying. However, in the event of an accident, this move can be costly later, as the carrier will have to pay more before covering the damages. But if you’re not driving much right now, you’re less likely to have an accident, and you need to reduce your monthly costs, it might be worth it. However, the most important thing to keep in mind is to make sure you have enough money to pay a higher deduction in the event of an accident.

2. Low coverage of old vehicles

Older cars may not be worth the same insurance attention as all bells and whistles in the shiny new Tesla and Mercedes type policies. If the old car is on the last lap, it is advisable to cut the collision coverage or comprehensive coverage of that vehicle. Both cover car damage.

Whether you should reduce coverage depends on the value of your car and the relative cost of covering it.Expert suggestion If your car is worth less than 10 times your annual insurance premium, buying that car’s coverage may not be a cost-effective option. One of the easiest ways to check the value is to scroll. Kelley blue book online.

3. Use mass transit or carpool to reduce mileage.

Airlines may offer discounts if you have a low mileage, that is, if you are driving less than the average annual mileage compared to other Americans. Generally, if you drive less than 7,500 miles a year, you are considered a fuel-efficient driver, but the factors that determine whether you are a fuel-efficient driver are state, age, and gender. The national average annual premium for Americans driving less than 5,000 miles is approximately $ 1,612. Bank rate..

State Farm offers fuel-efficient drivers one of the cheapest monthly premiums at $ 128. analysis..

If you have mass transit in your area, you can get a fuel economy discount by taking a bus (or carpooling with others) a few days a week. If you don’t live in an area with public transport, you can consider carpooling to work or school to reduce your mileage.

And of course, if you’ve moved from home to work or study since the beginning of the pandemic and still haven’t returned face-to-face, contact your career to let them know-and use your savings.

4. Bundle insurance

One of the easiest ways to save money with insurance Bundle your home and car insuranceThat is, buy multiple insurance policies from the same company. Depending on your carrier, you can get a premium discount of 5-25%.

5. Safe travel discounts

If you are proud to be a safe traveler, you are in luck. Carriers offer safe driving and discreet billing history discounts, and there are several discounts available here. Call your carrier and ask how to enroll in these types of programs. If you successfully register, you will see that your premium will be reduced on your next bill.

For example, State Farm Both Accident-free discount. The discount will be applied if there is no accident and it continues for 3 years or more. In addition to good driving discounts, you will also receive a discount of premiums for 3 years or more without traffic violations or negligence. accident.

Telematics insurance programs are also a great way to get safe driver discounts and take into account fuel economy discounts as well. These programs monitor mileage and driving behavior via phone apps or car plug-in devices. Simply call your carrier to sign up for the plan. Discounts vary by carrier and state, Savings Up to 30% off premium. Start with a base rate that is adjusted according to the telematics report. This includes factors such as average speed and braking habits. For example, State Farm reviews telematics data every six months to determine driving safety. Based on these measurements, apply a discount in the range of 5% to 50% to your policy. Bank rate..

6. Buy a cheap car

If you are considering buying a new or used car, consider comparing the insurance costs of different vehicles. Car insurance premiums are calculated based on a variety of factors, some of which are based on the car itself, such as car prices, repair costs, and general safety records.

“This is something people have forgotten. You can buy a Honda or Kia car, it’s cheaper, or you can buy a Mercedes or Tesla. It’s going to be more expensive,” Charter said. Said real estate Janet Lewis.Underwriter of casualties and director of strategic communication in Insurance Information Association..

And the difference in Mercedes insurance costs compared to Honda is clear: the average cost of insuring Mercedes-Benz in 2019 is about $ 4,201 Compared to the average every year $ 2,151 Every year for Honda. So while Mercedes is $ 350, Honda pays an average of $ 179 a month. 6 Ways to Save Car Insurance in 2021

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