Money-Saving Car Insurance Hacks to Lower Your Premium

Tired of paying expensive monthly premiums? We feel your pain! A recent CNBC report revealed car insurance rates are climbing by 5% in 2022. That spikes the national average from $1,663 annually in 2021 to a whooping $1,707 in 2022. The fact of the matter is drivers will pay more this year, even the ones with exceptional driving records. Because of this, it’s time to get to work and find ways around the national rate increase. Here are the best money-saving car insurance hacks for snagging cheaper auto premiums.

How do insurance companies determine car insurance rates?

Before we begin our list of the top car insurance hacks, here are a few things that car insurers always analyze before determining your premium. Agencies will look at your age, location, how frequently you drive, and the type of car you drive. In most cases, a pick-up truck will cost more to insure than a small sedan. Keep this in mind when you’re selecting your next vehicle.

On top of that, the age of your vehicle will likely factor in as well. Newer cars, although safer, are often more expensive to repair than older models. Each of these components will play a role in what car insurance rate you are offered, however, your personal driving history (number of tickets, fines, and license suspensions) will have the biggest impact.

5 car insurance hacks to lower your premium

Take advantage of these savvy tips to reduce your monthly costs and improve your insurance outlook in 2022:

#1: Bundle policies for added savings

Nowadays, bundling your home and auto policy may be one of the quickest ways to lower your premiums. Insurers will often give better discounts if you merge differing insurance policies under one roof. While auto and home bundles are some of the most common options, you can also bundle life insurance and renter’s insurance as well.

#2: Park your car in a garage

Among the factors listed above, where you park your car also has an effect on your car insurance premium. In general, it’s best to park your vehicle in a private garage so it is better protected against weather damage and other risky factors. Insurers view street parking and public garages as more risky, with greater potential of  your car being vandalized, stolen or damaged in a hit and run.

#3: Increase your deductibles

This car insurance hack isn’t possible for every driver due to tight budgets. However, if you’re financially able to increase your deductible, it will typically pay off. Most insurance agencies have a standard deductible of $500. Consider raising yours to $1,000 so the auto agency is responsible for less coverage in the even of an accident.

#4: Let your driving record do the talking

If you’ve been stricken with a bad driving history, it’s often hard to get insurers on your side. As a result, your car insurance premiums are always high. But that doesn’t mean you should give up! Earn back your reputation by practicing good driving habits. Take defensive driving courses or enroll in a state-approved telematics program that helps you become a better driver.

For example, GEICO offers the DriveEasy app, that monitors your driving and helps you improve your skills over time. The app will also assign you a score and send reports to show off good driving habits. A lot of drivers have earned big savings per year by using this program!

#5: Shop around (always)

You may think once you’re locked in to an auto insurance policy that you must ride out the full year, however that’s not the case. It pays to compare rates every few months and find ways to save on this financial necessity. You can use an online comparison site, like Zebra, or contact an agency directly. All and all, you’ll notice that auto policy rates vary per week and month.

Why use these car insurance hacks?

With the price of inflation inflicting every household this year, it’s a good opportunity to find ways to save. With these car insurance hacks, you’ll definitely be able to secure a more affordable premium and perhaps improve your driving skills in the process.