- Consider taking higher comprehensive and collision deductibles to lower the policy's physical damage rate. Adjust your emergency fund if you make this change. A high deductible means you pay more out-of-pocket when a claim occurs.
- Evaluate policy coverages and consider dropping any that are not necessary. For example, car values drop over time. Paying for physical damage on an older, high-mileage vehicle may not be worth it. Check for duplicate services (like towing) if you belong to an automobile club.
- Explore discounts. Most insurers have a variety of possibilities. Examples include safe driver (no accidents or tickets), mature driver (usually over age 50), defensive driving course (completing an approved defensive driving class), low mileage (often under 7,500), anti-theft, multi-policy (auto and home with the same company), and good student (B average).
- Look into usage-based pricing, sometimes referred to as telematics. Many insurance companies use technology installed directly into your vehicle or uploaded through your cell phone to factor actual miles and driving habits into your premium.
- Handle finances responsibly. Insurers rely on a variety of rate factors. Statistics show individuals with good credit tend to have fewer claims. In turn, some insurance companies (not all) use credit-based insurance scores as a pricing tool. Improve your credit-based insurance score by paying bills on time and limiting unsecured debt. Get in touch with the credit reporting agency to correct errors in your report.
- Connect with the insurance company before buying a new car. Certain vehicles cost more to insure because they are easily damaged, expensive to repair, have high performance engines, or are prone to cause serious injury.
