Drivers everywhere are trying to slam the brakes on runaway car insurance costs. The average cost of car insurance coverage is up 26% over last year, according to the website Bankrate.
As car insurance becomes more expensive, drivers nationwide are taking a number of steps to trim their annual premiums. Here are some of the ways drivers are fighting sky-high insurance rates.
1. Shopping around
Drivers are getting proactive about finding better rates. As we reported in “Far More Drivers Are Doing This As Car Insurance Rates Surge,” the number of folks who shopped for coverage during the first quarter of 2024 reached a five-year high.
That followed strong activity during the fourth quarter of 2023.
If you want to cut costs, make sure to check out the “12 Ways to Lower Your Car Insurance Bill.”
2. Raising their deductibles
Raising your deductible can trim your insurance costs. Agreeing to lift your deductible from $200 to $500 could cut premium costs by up to 30%, according to the Insurance Information Institute. Moving up to a $1,000 might slash your cost by 40% or more.
Just remember that you will have to pay the deductible amount before your insurance coverage will start picking up the tab for your expenses when you file a claim.
3. Considering pay-per-mile insurance
If you don’t drive much, you might benefit from purchasing a policy with pay-per-mile coverage. With this type of policy, you will only pay for coverage based on every mile you drive. It makes the most sense for those who travel relatively few miles every year.
Wondering whether this type of coverage makes sense for you? Check out “Is Pay-Per-Mile Car Insurance Right for You?.”
4. Buying cheaper cars
New cars and luxury cars typically cost more to insure. Parts are often more expensive to replace in these vehicles.
Some people might buy a cheaper car to cut these costs, although bargain vehicles might break down more often and have other negatives.
If you want a car that is affordable to insure, check out “4 of the Cheapest Cars to Insure in 2024.”
5. Downsizing to one-car households
Depending on the type of vehicles you drive, scaling back from two cars to one can dramatically reduce your insurance costs. However, sharing a car can put a strain on any relationship.
6. Paying a year’s worth of premiums upfront
Many insurers offer discounts to those who pay their annual insurance premiums in full instead of paying them monthly in installments.
