Want to pay less for auto insurance? Here’s what the experts say | Acrisure Viewpoints
What would you do with a check for $1,800? According to a recent BankRate study, that's about how much every American spends per year on full coverage auto insurance. How much of that is within your control, and what changes can you make to pay less? We asked our experts.
One major factor in your monthly payment is the type of vehicle that you’re insuring. “When you’re budgeting for a new vehicle, always consider how the price of the car will translate to your insurance payment,” said Amy Merrill-Rice from Keyser Insurance Group, an Acrisure Partner.
“Insurance premium is a monthly obligation that a lot of drivers don’t include in their calculations when shopping for a new car. You may be able to afford the loan payment for a pricier vehicle, but you should remember that the insurance cost goes up with the vehicle cost.”
Amy notes that many people assume their insurance rates will decrease as the vehicle ages and the value drops, giving them more wiggle room in their monthly budget. However, with most auto claims being partial instead of total losses, she says that you need to consider how rates are based on costs for both the vehicle and needed repairs, parts, and labor.
“Since the cost of repairs isn't impacted by the age of the vehicle, the insurance prices tend to stay relatively stable for many years following a new purchase,” Amy said.
Generally, you’ll get a lower insurance rate for a less expensive vehicle. If you are trying to fall within a specific range for your total monthly vehicle costs, give yourself room and aim lower during your car search to be safe. "And remember that it doesn’t have to be a guessing game,” Amy said. “It's always a good idea to check in with your agent before signing on the dotted line.”
Your driving record is another major contributor to your insurance rate. California drivers, for instance, can expect to see their annual rate increase about $1,436 after an at-fault accident. So, stay on top of your coverage, maintain the speed limit, and keep your focus on the road.
Overall, one of the best ways to save on your insurance premiums is by bundling your coverage for your home, vehicle, and more. On average, most homeowners who bundle their auto insurance policies with Acrisure save between 5-25%. That’s because Acrisure Partners sit down with you to review your policies and recommend personalized offerings that meet your needs and budget.
Ready to review your policy to see how you can save? Connect with an Acrisure Partner today.
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