Auto insurance rates depend on a lot of factors: your age, the car your drive, where you live, and your credit history. Lately, you may have noticed your rates rising.
"Now we have inflation and also auto insurance is coming back to pre-COVID rates because people are driving more and using their cars more. So that's one of the reasons why we're seeing this increase in auto insurance rates," said Andrew Latham, certified finance counselor and managing editor of Supermoney.
Latham shared four tips on how to save on your premiums.
1.) Shop around and compare rates
"You can lower your rate a lot just by asking three or four companies just to see what rates they offer," said Latham.
2.) Increase your deductible
"Just by increasing your deductible from $500 to $1,000, that can lower your auto insurance rate by up to 10%," he told TMJ4 News.
3.) Ask your carrier for a rate reduction if you're not driving as much
"If you can prove that you have lowered your mileage -- maybe you are working from home whereas you used to commute, then many auto insurance companies will consider lowering your premium."
4.) Consider dropping your comprehensive and collision coverage, especially if you have an older car
"A good rule of thumb is to drop extra coverage (e.g., collision and comprehensive) when your annual premium is 10% or more of the car's Kelly Blue Book value. For example, if you are paying $1,500 a year in auto insurance and your car is worth $10,000, you probably should drop extra coverage."
