lowering your auto insurance
Saving Money

Guide to Lowering Your Auto Insurance in 2021

I may not be Jake from State Farm, Flo from Progressive or even the “liberty biberty” guy from those Liberty Mutual commercials. All things considered, you don’t have to be a fictional TV personality to know a thing or two about car insurance. While you may not have realized that lowering your auto insurance is an option, there are key ways you can bring the cost down.

Drive a newer, safer car

Advanced safety technology has made a big difference on the road. In 1997, occupant fatalities were at 17.81 per 100,000 registered passenger vehicles. Two decades later, that number was down to 10.05 per 100,000.

This is no secret to insurance companies. They’re ready to give lower rates to people who drive cars with additional safety features. This is especially true if you’re dealing with automatic safety features that don’t even require a human touch.

Of course, this isn’t an option for everyone. You may have your car already with no plans to get a new one anytime soon. However, many drivers are nearing the end of their lease period or getting ready to trade in an old daily driver.

What to do: If you’re preparing to get a new car, contact your insurance company to get a list of safety features that trim your premium. Lowering your auto insurance is as simple as that!

Lowering your auto insurance if you work from home

Do you remember when you signed up for your insurance? They probably asked you how long your daily round-trip commute to work is. In 2018, the average American commuted 27 minutes one way for work each day. Since the COVID-19 pandemic hit, remote work has grown from 3.4% of the population to about 41%.

Image Source: Upwork

If you’re a new remote worker or your commutes have significantly decreased, let your insurance company know. They may be able to adjust your portfolio depending on your contract.

Get clever with your credit

Credit got you down? There’s an app for that.

Perch Credit is an interesting fintech solution that helps people—especially young, marginalized people—build their credit in small increments. Perch tracks recurring expenses, like your Netflix subscription, your gym membership and even your rent, and uses them to build credit.

By the time they hit 18, millennials and younger drivers were poached by credit card companies hoping to earn a buck on unsuspecting college students. Plus, generational oppression from unfair lending practices and credit-building blockages (like the inability to buy property) has made it harder for people of color and lower-income families to get a head start with their credit. 

Software like Perch has a ripple-out effect, and one of those effects is lowering your auto insurance premium.

Ask if your insurance company offers a driving monitoring program for lowering your auto insurance

State Farm offers a Drive Safe & Save program. In it, they give the driver a tracker to put on their dash that’s hooked up to A) a phone or B) OnStar. 

You can save a set amount of money off your premium each month by simply avoiding bad driving behaviors like speed and phone usage.

They’re not the only company doing this. Usage-based insurance (UBI) plans also use a monitoring system that tracks how often you drive, if you use your phone and how smoothly you brake and accelerate. If you don’t drive much, UBI may be a good option for lowering your auto insurance costs.

Should you increase your deductible?

Some experts might suggest increasing your deductible to lower your monthly insurance premium. However, this should be the last option, only to be used if you’ve tried everything else. In addition to the three tactics listed above, try:

  • Driving safer and slower
  • Taking a defensive driving course
  • Ask about discounts for a clean driving record, if you have one
  • Shop around and compare rates, even if you’ve been with the same insurance company forever

Once you’ve done all that, you may find that increasing your deductible as a way of lowering your auto insurance isn’t necessary.

 

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Rachel Curry
"Hey! My name's Rachel Curry and I'm a full-time writer who loves telling the world's stories as much as hanging with my dogs (and that's saying a lot). A University of Delaware graduate, I've traveled extensively, living everywhere from Ireland to Thailand. Bylines include Matador Network and Delaware Today."

    3 Comments

    1. great article !

    2. I’ve working on getting lower insurance for a while. I’ll keep this info in mind next time I go shopping for insurance.

    3. Understanding how our credit system works is something that everyone should understand. Regardless of background, all schools should offer education to teach individuals early on how to build good credit.

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