Car insurance can be expensive You are required to buy it in NY if you are operating a vehicle on the road. Good insurance, however, doesn't need to cost you an arm and a leg. Here are some tips on how to reduce your auto premiums.
1. Get Multiple Quotes
Getting quotes from multiple insurance companies is a good starting point. You would be surprised by how much premiums can vary. We can provide you with quotes from many different insurance companies and find you the best insurance at the best price.
2. Consider the Car You Drive
The type of car you drive has a significant effect on car insurance premiums. Insuring a Ford Mustang is much more expensive than insuring a Honda Odyssey. Before you purchase a car to add to your policy, call us with the VIN and we can give you the premium for that car.
3. Adjust Your Deductible
The deductible is what you pay before the insurance company starts to cover you. A $100 deductible is much too low for many. If you can handle a $1,000 loss, why set a deductible at $100 or $250? If your deductible is $100, the insurance company will pay out more in the event of loss. In turn, the insurance company will charge you more.
So how much can you save by raising your deductible? The answer will vary, depending on your insurance carrier. Ask us how much you can potentially save by raising your deductible.
Remember this rule: the higher the deductible, the lower your premiums.
4. Combine Policies
If you have multiple insurance policies, there are a couple good reasons to combine them with one carrier. First, working with one carrier is much easier than working with two or more. Second, you can get a discount. Combining your auto and homeowners insurance with one company can provide a discount.
5. Watch Your Credit
New York factors in your credit history in setting premiums. The company wants to check how you handle your finances and if you can pay the premium.
6. Ask about Discounts
Auto insurance companies offer many discounts. Some you might expect, such as a discount for safe driving.
Here's a list of discounts with our carriers:
- Accident Free
- Good Student
- Combining Car and Home Insurance
- Student Away (over 100 miles away from home with no car)
- New Vehicle
- Drivewise (used by Allstate to evaluate how safely you drive)
7. Reduce Coverage
Similar to raising your deductible, you can save money by reducing your coverage. As your car ages, the need to insure against damage to your car diminishes. For example, if your car is 10 years old, you may have no need for comprehensive and/or collision coverage.
8. Pay in Full
Insurance companies offer a discount to clients to pay their premium in full for the entire policy term.
9. Take a Defensive Driving Course
A NYS DMV-approved defensive driving course can save you 10% on your liability, PIP, and collision insurance premiums for three years.
Enroll in a course today from Improv Traffic School on our Defensive Driving Page.
10. Drive Safely
This seems like an obvious tip. You can keep premiums low by avoiding accidents and traffic tickets. You can also reduce your premium by allowing some carriers to monitor your driving habits.
Allstate offers Drivewise. You play the device into your car and it monitors certain driving habits, such as hard stops, idle time, and daytime versus nighttime driving. Based on the results, you could see a significant decrease in the cost of auto insurance.
Related Blog Posts
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Five Steps to Take After a Car Accident
Car Insurance for a Teenage Driver
Understanding Collision and Comprehensive Coverage
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Written by Bill Pepe