3 Ways to Reduce Auto Insurance Premium

1. Bundle & Check for Available Discounts

If you’ve got an insurance agent, most likely they have given you all discounts available to you when you write the policy with them. However, things change, lives change, and if your agent isn’t informed then you could be missing out on potential discounts. Keep in mind that discounts vary greatly by carrier, but some examples are if you’ve got a child living at home that makes good grades and took drivers education, then you could receive a good student and driver’s education discount. If you’ve recently retired, but you worked when you made your policy, then most likely your auto is classified at a “work” or “commute” vehicle. If you’ve retired and no longer drive back and forth to work then the class of your vehicle can be changed to “pleasure”,  thereby reducing the monthly premium on that vehicle. If you’ve got your auto insurance one place, and your home insurance another, then you could be missing out on big bundling discounts. There are times where it is cheaper to keep them separate, but it’s always a good idea to get a quote to see if you could be saving money by bundling. Another discount that a lot of carriers offer is the defensive driving discount, meaning if you take a defensive driving course, pass it, and keep it renewed when it expires, you could receive a discount.

2. Increasing Deductibles

Deductibles are what your out of pocket pay would be in the event of a claim. While have a $250 deductible is great if a claim happened, you are paying more per month for such a low deductible. Raising your deductible can go a long way in reducing your monthly premium, while still keeping important comprehensive and collision coverage on your vehicle(s). Keep in mind that some lien holders won’t allow you to raise your deductible to over $1,000. It’s always a good idea to check with your lien holder and your agent, to see if increasing your deductible is something that could benefit you.

 3. Stay Accident & Violation Free

This one may seem a bit of a no brainer, but staying free of accidents or traffic violations really can go a long way in keeping your premiums low, especially when switching carriers. Carriers do driving history checks when policies are initially written up, and the length of time they go back can vary. Some carriers go back as little as 3 years, while others go back as far as 8. So even if you’ve been violation free for awhile, that speeding ticket you got 6 years ago could come back. Carriers can also do random driving checks throughout your time with them, so if you got a violation or ticket after you wrote your policy, but your premium mysteriously went up, that could be the culprit. Talk with your agent to see if any accidents or violations are impacting your premium.

-Jordan Newcomer

Licensed Property & Casualty Insurance Agent