Inflation has caused a significant shift in the auto insurance industry. While the price of goods and services continues to rise, research shows that insurers have increased auto insurance premiums by more than 8%. Gas prices also continue to rise. If you are frustrated at your rising premium costs, here's a look at a few things you can do to save money and offset these rising costs.
Reducing the coverage on your auto insurance policy is a realistic option, especially if you have an older vehicle. If the value of your car has dropped significantly, consider cutting collision and comprehensive insurance from your policy. Generally, if your car's current value is lower than the amount of your annual premiums, it's recommended that you cut some of your auto coverage.
Increasing your deductible means that you will be responsible for covering a higher amount of out-of-pocket costs towards a covered loss. Increasing your deductible lowers your insurance premiums. Increasing your deductible is recommended if you have reduced the number of times per week that you drive your car. However, increasing your deductible could put a strain on your finances if your vehicle suffers damages and you don't have the resources to cover your deductible.
One of the top savings on car insurance tips is bundling your home and auto insurance policies together with the same carrier. As a show of gratitude, many insurance companies offer a discount if you purchase multiple types of insurance from them. Qualifying for a discount can help you enjoy substantial savings.
Perhaps your insurance needs have changed since you aren't driving as frequently. This is a good time to shop around and compare rates. Perhaps another carrier is offering lower premiums that align with your current budget. Maybe another carrier is offering more discounts. Researching multiple rates gives you a chance to explore your options.
Many auto insurance carriers offer a discount to low mileage drivers. It's recommended that you contact your insurer to inquire about a low mileage discount. Be aware that your insurer may research the state that you live in before adding the discount to your policy. If you're carpooling or using public transportation more often, you'll likely qualify for a low mileage discount. If you're working from home more frequently, it's also recommended that you contact your insurer to see if you qualify for a low mileage discount.
Research shows that inflation isn't going away anytime soon. You'll have to make adjustments if you want to save money on car insurance. Utilizing these tips should help with saving on car insurance. If you have any questions about your policy, contact the team here at CF&P Insurance Brokers, and we will assist you.
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