Even without a monthly car payment, getting behind the wheel comes at a cost. The average driver now pays nearly $2700 a year for car insurance. Finding cheaper coverage doesn’t have to be complicated. Consumer Reports has a few simple things you can do to pay less.
First, talk with an independent agent. This will make it easier to compare coverage and premiums from several different insurance companies. It pays to shop around.
Next, consider increasing your deductible. This timeless advice saves you cash because you’re bumping up your out-of-pocket cost for repairs. Just make sure you can cover it.
Drop collision and comprehensive. Collision covers damage if you’re in a hit-and-run and comprehensive covers storm, theft and fire. As years and miles pile up, the lowered value on your ride might not be worth this expense.
“As a general rule, if your premium is more than 10 percent of the car’s worth, it’s time to consider dropping collision, and maybe comprehensive, too,” said Keith Barry with Consumer Reports.
Bundle up and save. Most companies offer discounts on annual premiums when you purchase both your home and auto policies from them. It might be worth it.
Save a few hundred bucks and take a defensive driving course. Driver beware; to keep the discount, you’ll probably have to take it again every few years.
Sign up for driving monitoring. Some insurance companies offer a discount if you let them monitor your good driving habits with a smartphone app or a device that plugs into your car’s diagnostic port. There’s a potential for big savings, but you have to be okay with giving up a certain amount of privacy.
Finally, pay out of pocket when it makes sense, like for a one car fender bender. For minor damage that doesn’t involve another driver, do not file a claim. You’ll avoid a potential rate increase.