5 Tips for How to Reduce Your Auto Insurance Premium

Americans spend an average of $125 a month on car insurance, with Ohio residents paying the least and Michigan residents spending the most.

While geography plays a major role in how much you’re going to pay, it’s not the sole determining factor. Regardless of your zip code, there are multiple ways to lower your auto insurance premium.

Keep reading to find out how to lower your auto insurance.

Drop Comprehensive Coverage on Older Cars

Buying insurance with all the bells and whistles makes sense if you just drove your brand new car off the lot. It even makes sense if your car is a couple years old.

But as your car ages and becomes less valuable, it’s time to look at dropping your comprehensive coverage and going with liability coverage. It’s one of the simplest ways to get lower auto insurance rates.

Increase the Deductible

When was the last time you thought about your deductible? It’s common to go years without thinking about it if you’ve also gone years without a car accident.

But a lower deductible means you’re going to pay a higher premium, so it can be worth the calculated risk to call your insurance company and ask about raising your deductible.

Don’t get carried away, though. You’ll want to be sure you can pay your new deductible if you have to file a claim. There’s no sense requesting a $1,000 deductible if you don’t have that much extra cash on hand.

Work from Home for a Lower Auto Insurance Premium

Sick of that long commute? Ask your boss about working from home. For one thing, evidence shows that working at home can increase productivity.

It also decreases the number of miles you’re driving each year, and people who drive less tend to snag lower insurance rates.

Some home environments are more distracting than others, and you may not want to work from home every day. That’s OK as working remotely one or two days a week can still lead to lower auto insurance rates.

Look at Other Carriers

If you really want to know how to lower your auto insurance, you have to be willing to shop around. Don’t let a misplaced feeling of loyalty keep you from seeing what else is out there.

You may feel like your long track record with Company A means something, but it’s still a business relationship. You have a right to alter or end a business relationship if it no longer makes sense for you.

Read Reviews

Your friend at work says they got a great deal with one insurance company, while your sister swears up and down that her insurance company is the best one for you. How do you break the tie?

You can look up insurance reviews. Let’s say you’re torn between Safeco and Progressive. In that case, looking at both Safeco insurance reviews and Progressive insurance reviews will help bring some clarity to a muddled situation.

Read reviews across many sites to get a full picture, and then use that new information to decide.

More Ways to Save

You should now know how to get a better deal on your auto insurance premium, but there are still lots of other expenses associated with owning a vehicle.

Finding low cost auto insurance is only the beginning. Check out our blog for ways to save when you fill up your tank.