When the expenses related to car accidents increase, the increased costs are passed along to us in the form of higher premiums. There are many factors that cause the costs related to claims increase, but what can you do to take some of the sting out of those increased premiums?
Here are a few ideas to help you lower your auto insurance bill without lowering your coverage.
Telematics is the generic insurance industry term associated with providing your individual driving data to your insurance carrier. This is accomplished either through a device installed in your vehicle by you or the manufacturer, or an app on your smartphone. Most carriers have a telematics program than can help you lower your insurance premium by providing discounts for positive driving habits. Each company has a different program. They may measure different things over different time periods and provide different discounts. Although some companies may increase your premium if you display poor driving habits, most drivers should qualify for a discount.
Review your policy to see if there are any coverages that are no longer necessary. If you are no longer working, coverage that pays for work loss may no longer be needed. If you have paid off your car, GAP coverage, which pays for the difference between the book value and your loan amount, is no longer necessary.
Take advatage of bundling discounts. Insuring your home with the same carrier can provide a substantial savings on both your auto and home insurance.
The best way to save money on you car insurance is to work with a local agent who will take the time to review your personal situation and recommend ways to save while keeping you protected. Remember, saving money on your premium does you no good if, at the time of an accident, you don't have the right coverage. Make sure you are properly protected by working with a licensed professional.