While it may be challenging for some, it may be necessary to cut back on the cost of auto insurance because of the recent inflation across the United States in 2022. Our experts at LA Insurance have compiled our best tips to help you save each month on your auto, home, or any other type of insurance without having to jeopardize your safety or coverage amounts. Below are our 5 recommendations on how to lower your auto insurance premiums in Colorado in 2022.
Shop Around for Discounts
Unfortunately, we still can’t just wish for auto insurance premiums to be lower and then they magically appear lower on your next bill. There is some necessary research that comes with trying to find a lower insurance premium, but in the long run it will serve you well. Many insurance companies even have discounts for switching from one company to another as an incentive. Common discounts to lower your auto insurance include:
- Enrolling in preferred payment options such as automatic payment
- Bundling your car insurance with your home insurance or multiple vehicles
- Participating in a safe driving program like RightTrack
- Having advanced safety and anti-theft features in your car
- Having an energy efficient car
- Being a good student or being away at school for teens or young drivers
- Being an active, retired, or reserved member of the military
- Parking in a garage (especially if you live in a high-theft area)
- How often you drive
There’s opportunities everywhere online to lower your auto insurance premium, it just requires some research before you call your insurance company and solidify your new auto insurance premium information.
Maintain a Good Driving Record
Safe drivers in Colorado will always have the cheapest policy. In addition to protecting yourself and others on the road, it pays to drive safe, always. By avoiding speeding, getting into accidents, and other driving incidents you can lower your auto insurance premium by a landslide. Not only do you prevent expensive speeding tickets or other moving violation costs, you also help keep your insurance rates lower by proving you’re a less risky driver on the road. Additionally, if you have a claims-free or violation-free history, you can receive additional discounts as well.
Improve Your Credit Score
Establishing a solid credit history can cut your insurance costs. If you didn’t know, most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate. But, I bet you’re still wondering what does my credit score have to do with my car insurance? In some states, a credit check may be part of your risk assessment by insurance companies. In Colorado, it is.
Sometimes people with higher credit scores get lower insurance rates because it correlates to making responsible decisions when driving. If you want to start improving your credit score, be sure to pay your bills every month on the dot, decrease your credit utilization rate (the amount you spend compared to your total line of credit amount), and make sure the information on your credit report is accurate – you can dispute anything that is not correct.
Bundle Your Policies
Combining your home and auto policies to one insurance carrier is one of the easiest ways to lower your insurance rate. Regardless of whether you own or rent your home, you can bundle it with your auto policy to save. In addition to a discount, you’ll save time when you only have one account to manage with one login, less payments to keep track of, and more.
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multipolicy discount.
Increase Your Deductible
Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can make your car insurance payments less expensive.
You may be able to do this directly online or through your insurance company’s mobile app. Keep in mind you need to be prepared to pay the deductible amount yourself if you get into an accident. Make sure you have enough savings set aside to cover your deductibles to be safe.
Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.
Still Need Other Ideas to Lower Your Insurance Premium?
Common ways that average drivers have cut down on their own insurance costs is by downsizing their vehicle to a more affordable one, moved to different cities, and even consciously reduced their own mileage on the road. If these options don’t seem viable for you and your lifestyle, call on of our helpful agents at LA Insurance that can provide extra information on how you can save on your auto insurance every month.