How can I lower my auto premium?
It’s something we hear every day. There isn’t a person in America that doesn’t think they pay too much for auto insurance, and whether that is because they’ve heard it on television or because they probably ARE overpaying, most of us want to pay less for the coverage we have. So let’s look at some sure fire ways to reduce the amount we pay – today.
And there’s a bonus secret at the bottom of the page.
Secret #1 – Set up automated bank payments.
Say what? That matters?
It sure does. This is a simple, easy fix that just about anyone can do to get a discount on their car insurance. As I spoke about in my Package Policy blog and video, insurance companies love loyalty – and who doesn’t? Signing up to pay by EFT, bank draft, whatever you want to call it, tells the company that you will pay in full and on time every month, making you the perfect customer. Insurance companies reward such behavior because it is in their best interest to do so – and it is in your best interest too! So make sure you sign up for automated payments and give yourself an easy break on your auto premium.
This is also great because it helps prevent a lapse in coverage, which can really mess you up. A lapse can lead to higher premiums and fees to reinstate your policy.
Wait, did I pay my car insurance?
Secret #2 – Or just pay the whole thing at once.
You can do that?
You sure can, and paying your entire premium, or what we call Pay in Full, is a great discount for those able to take advantage of it. This discount exists for similar reasons to the automatic bank payment secret, as the ultimate way for your insurance company to know that you will pay on time is if you pay it all up front. Makes sense right? This method of saving on your auto premium is one that can be available to just about anyone for those can can plan for it. Even if you think you can’t afford to pay it all at once this year, sign up for automatic bank payments first, set aside money to pay your premium next year as you go, and then pay next year’s premium off at all at once when your policy renews.
We are all going to pay for the entire amount of premium anyway, so paying up front really isn’t that different from stretching it out. It is more of a mentality shift, as in the modern era we expect all things to be paid month-to-month. But trust me, when you find that you’ve saved $50-200 a year on your auto premium, you’ll be happy you planned accordingly.
I just cut out avocado toast for a month and paid my car insurance.
Secret #3 – Get a renters insurance policy.
I need another policy?
Well, yeah, you do. If you have a car you probably live somewhere, either in a house or in an apartment. Over 90% of homeowners have insurance for their home, so this goes mostly to my renters (though you homeowners really should combine your policies under one carrier for the same reasons I’ll get to in a sec). For those of you that don’t know, the best discount you can get is the multi-line discount, or a package/bundled policy discount. This is usually somewhere around 10% off of your auto premium, which is huge. And not only do you get this discount on your auto policy, you also get a discount on your other policies with the same carrier as well, such as a renters (or homeowners), personal umbrella policy, or anything else.
All of this is really a no-brainer for you renters out there, because with renters insurance being usually less than $200 a month, the discount can almost pay for itself! Depending on your situation, adding a renters policy can make your auto-renters combo a buy-one-get-one-free deal (but not guaranteed, so don’t quote me on that).
It’s cool – my shoes are covered under my renters policy.
It pays to pay and stay.
So the real secret? Pay the right way, get the right policies, and stay with the same company. If you pay with automatic bank transfer or in full, and if you have your personal belongings covered with the same company either through your home or renters policy, you save money on your auto premium. Period, end of story, all the time. It works. You should do it.
And one more way to save money is this:
Stay with the same company! Most companies offer discounts for loyal members and will give breaks to customers that have been with them for three years or more. So if you are thinking about switching and you’ve been with a company for two years or so, call your agent and ask if you might be getting a discount soon for being so cool and loyal. The answer may surprise you.
If you find yourself wondering how you pay, or if you’ve decided to go ahead and get a renters policy, fill out the form below and let us know! We’d love to hear about how we can help you save time and money, all the while giving you a little more peace of mind.