Auto Insurance Premiums Are Up 17% From a Year Ago. Here Are 3 Tips to Lower Yours

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Paying more for auto insurance than you’d like? Read on for tips on snagging a reduced rate. 

When you own a car, you need auto insurance. There’s really no getting around that. But the cost of auto insurance may be getting difficult to bear.

As of June, the cost of auto insurance was up 16.9% on an annual basis, according to that month’s Consumer Price Index. And at a time when living costs are still elevated across the board due to inflation, that’s a hard increase to absorb.

The good news, though, is that you’re not necessarily doomed to spend a fortune on auto insurance. Here are a few steps you can take to lower your costs.

1. Maintain a safe driving record

Auto insurance companies set premium rates based on a few different factors. One such factor is the value of your car. The more it’s worth, the more you can expect to pay for insurance, since it will cost your insurer more money to replace it should it become totaled.

Another factor that goes into auto insurance rates is your driving record. If you have a history of being a safe driver, you’re considered a less risky person to insure, and your premium rates are apt to reflect that. A history of moving violations, on the other hand, could leave you paying a lot more for car insurance.

If you’d like to see your premiums go down, do your best to drive safely. And if you already have a few black marks on your record, talk to your insurance company about taking a defensive driving course, which might help your rates go down.

2. Bundle your auto and homeowners policies

Insurance companies want your business, and they may be willing to offer a discount to get it. If you own a home, see if there are savings to be reaped by bundling your auto and homeowners insurance policies.

What it actually pays to do in this situation is contact both your homeowners insurance company and your auto insurance company to discuss bundling, and then see which one might offer a better rate. But at the same time, shop around with other insurers before signing up for a bundle to make sure you’re really getting the best deal.

3. Make sure your insurer knows how infrequently you drive

The more you drive, the greater your likelihood of getting into an accident. And so if your car largely stays parked in your driveway or garage, that’s something you should make certain your auto insurance company is aware of.

Many people have, over the past few years, gone from using their cars for a daily commute to barely driving due to working from home. If you’re in that boat, inform your auto insurer and see what that does for your premium rates.

If you’re struggling to cover the cost of auto insurance, you’re probably not alone. But if you make these moves, you might manage to lower your costs significantly. And your savings there could go a long way toward covering the cost of vehicle maintenance, gas, and the many other expenses associated with owning a car.

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