In the last few years, car insurance premiums have risen more than at any other time in history. The price for car insurance monthly can now almost be equal to the cost of a monthly car payment. It’s making it difficult on families across the globe to afford something as simple as car insurance. Plus, it’s illegal to not have insurance on your vehicle, so there are not any ways around it.
Why Are Rates Going Higher?
Insurance companies are stating that the higher rates are due to more frequent accidents. Distraction related accidents and deaths have gone up dramatically, mostly related to one of the drivers using their smartphone. Texting while driving is one of the most common causes for accidents. Because of this, everyone’s premiums are increasing. Distracted driving has become an epidemic. And many of these accidents are very costly for repairs and compensation for injury or death.
Lower Your Rates
Don’t just accept the rates that your insurance company hands you for your vehicle. It can be a bit of a hassle, but shop around for better rates. There are many insurance companies usually situated in a town or city. Their premiums can actually differ significantly. Also, research online for car insurance companies. It may not be as handy as having your insurance agent located within a few miles of you, but how often do you make claims on your vehicle? Online insurance companies can often offer better rates. Get a car insurance quote that allows you to get the best price for your needs.
How else can you save on your car insurance rates? Make sure you discuss with your agent if you do not drive that many miles each day. Many agents will know of possible discounts if you are putting less than 15 miles on your car daily. Also, if you have more than one car insured through the same company, they usually give you some sort of small discount. This could work as well with having your home insurance through the same insurance company.
There is also the possibility of just getting the minimum car insurance needed. Liability insurance is quite a bit less than full coverage. This could be perfect for you if your car has high mileage and is not worth as much anymore.
Lastly, you can always opt for a higher deductible. An auto insurance deductible is the amount you pay out of pocket for an accident before your car insurance company will chip in. This means that if you have a $1,000 deductible, and you are in an accident that causes $3,000 worth of damage to your vehicle, the insurance company only has to fork over $2,000 to help with repairs. Raising your deductible from $500 to $1,000 can help you save about ten percent on your car insurance premiums. Some insurance companies will allow you to have a deductible of up to $2,500.
No Way Around It
I guess there is one way around it actually. Take the bus and other public transportation and sell off your car. This may work if you live in the city, but most people need their cars to get around. Biking and walking everywhere is also a possibility, but who wants to arrive all sweaty somewhere after dodging in and out of traffic.
Shop around and ask for rates for your car insurance. Once you find the lowest rate, make sure they are a reputable company. Then start discussing all the possible ways to receive discounts from them. It’s all about negotiating. They will not offer the discounts if you don’t ask. Be persistent and do not get discouraged. Lower premiums could be just around the corner!