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Car insurance premiums are going up. According to the newest study from Bankrate, the average cost of full-coverage auto insurance has hit $2,014 a year nationally. That’s up nearly 14% from last year.
Premiums rose the most in Orlando, Florida, going up nearly 23% to $3,078. Also, in Phoenix, Arizona, the premiums are up about 17%, with costs at $2,164.
Nationally, drivers spend nearly 3% of their annual income insuring their cars on average. Why are premiums on the rise? There are a few reasons from part shortages to the lagging effect of high inflation over the last couple of years. Hopefully, as that cools down, so will our insurance costs.
How can you reduce your car insurance premium? Here are a few ways:
Auto insurance providers often throw out offers, like if you improve your credit score. There are even low mileage discounts.
Some companies offer deals to motorists who drive a lower-than-average number of miles per year, if they carpool to work, or even if your teen driver is away at college and doesn’t drive the family car often. Some insurers will even offer a discount by going paperless, paying online, doing automated payments, etc.
Different companies have different rates and they can change from time to time. Find the company that has packages that best work for you and your family. Always get three quotes to compare.
The best to shop for a new quote is every six to 12 months when you know your policy is about to renew.
You can lower your policy limits or drop unnecessary coverage. If your old car isn’t worth a lot, you might consider lowering your comprehensive and collision coverage.
Some insurers offer deals and discounts if you participate in a course like safe driving, defensive driving, accident prevention, etc.
This all depends on your situation and which provider you’re with but paying a higher deductible is an easy way you can make your payments less expensive.
This means the amount you’re paying out of pocket before your insurance coverage kicks in will be more. Just make sure you have enough in your savings set aside to cover your deductibles.
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