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Struggling to pay for car insurance? Read on for ways to lower your costs. 

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Owning a vehicle is hardly an inexpensive prospect. In fact, it costs an average of $10,728 a year to own a car, according to AAA.

Part of that expense has to do with the cost of auto insurance. The amount you’ll pay for it will hinge on factors like your personal driving record and the type of vehicle you own. But if your auto insurance costs have been rising, you’re in a good company.

A 2023 Policygenius survey found that 43% of insured U.S. drivers say they’re paying more for car insurance now than they were a year ago. If your costs are wreaking havoc on your budget, it pays to do what you can to lower them. Here are some options to look at there.

1. Shop around for a more affordable policy

There’s no reason you have to stay loyal to the same car insurance company year after year if there’s a better offer out there. Shop around with different insurers to see what rates they have to offer. You might manage to lower your costs by signing up for a new policy.

2. Ask your insurer what discounts it has to offer

Auto insurance companies don’t always publicize the discounts they make available to drivers, but that doesn’t mean they don’t exist. Contact your insurance company and ask if doing something like taking a defensive driving course could result in a lower rate.

And also, if you don’t use your car very often, make sure your insurer knows about it. Many people are working from home on a permanent basis these days. If that’s the case, and your car spends most of its time parked in your garage, your insurer may be willing to lower your rate.

3. Increase your deductible

The higher your auto insurance deductible is, the less you might spend on premiums. Raising your deductible means running the risk of having to shell out more money in the event of an accident. But it could be your ticket to lowering your premium costs.

And also, think about it this way — you may not even get into an accident this year. But you know for sure that you’ll need to pay your car insurance premiums.

4. Bundle with your homeowners insurance policy

If you have car insurance with one company and homeowners insurance with a separate company, you may be doing yourself a disservice. Many insurers offer discounts when you sign up for both auto and homeowners insurance, so do some research to see if bundling your policies makes sense.

Auto insurance is one of those expenses you can’t avoid as a vehicle owner. But that doesn’t mean you need to resign yourself to paying more than you were in the past.

If your premium costs have risen to the point where they’re tough to afford, make a point to shop around for a better rate, look into discounts, and see if a homeowners insurance bundle can result in savings. And also, consider raising your auto insurance deductible, even if it means taking on more risk in the event you need to file a claim.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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