Simple Ways to Lower Your Car Insurance Premiums
As homework orders remain, many people have given up commuting in favor of telecommuting. Less time in the car has had some positive consequences, such as less traffic and fewer accidents . These changes also had a positive impact on the auto insurance industry.
Due to fewer cars on the road, the number of insured events is not so high – along with the growth of profits for auto insurers. In fact, many companies have given customers kickbacks or discounts with premiums this spring. These companies also offered help to those affected by the coronavirus who requested it .
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But as states reopen – and cars are on the road again – companies may start raising insurance premiums again. If you receive a larger offer or invoice than you expected, here are some ways to do it.
Shop around
According to The Zebra, Americans spend an average of $ 1,548 a year on auto insurance. But when comparing policies, you will notice that there are a number of markups between companies. Factors such as insurance coverage, age, gender, driving information, credit rating, location, and vehicle type can affect your insurance rates.
Increase your franchise
Most policies have a deductible of $ 500, which means you have to pay the first $ 500 before the insurer starts contributing to the cost. However, if you have a solid emergency fund, it might be worth increasing your deductible. You can save on insurance premiums, but you also have to pay more out of your own pocket for accidents.
Ditch cover you don’t need
While reducing liability coverage may be too risky, you may have some collision wiggle room or comprehensive protection. Both options may be optional by law, depending on where you live, according to the Insurance Information Institute. You may be an ideal candidate for opting out of this coverage if you drive your old car straight away, especially if you don’t use it much during the pandemic.