According to 2019 data from the American Automobile Association, it costs $9,282 a year to own and operate an average automobile. Unfortunately, there are not many ways to get around that annual cost. But according to the professionals at J.P. Perry, one major auto expense you can reduce is your auto insurance. By taking advantage of discounts, analyzing the cost factors of owning a car and with some help from J.P. Perry agents, you could make significant reductions. Here are a few factors to consider for obtaining reduced premiums.
Maintain A Good Credit Rating - Most insurers use credit information to price auto insurance policies. Research has shown that people who manage their credit have fewer claims. Establishing a solid credit history can reduce premiums. Be sure to pay your bills promptly and check your credit score regularly to clear up any errors that may have be recorded on your report.
Buy An Insurance Friendly Car - The car you drive makes a big difference in the premiums you pay. While it may not help you now, for future vehicle purchases, you need to consider an excessively expensive or "sporty" car will increase your insurance.
Reduce Coverage On Older Cars - If you have an older vehicle, you may need to consider dropping collision and/or comprehensive coverage. If your car is worth less than 10 times the premium, then this type of coverage may not be worth it.
Request Higher Deductibles - You can easily reduce premiums by requesting higher deductibles. For example, if you increased your deductible from $200 to $500, you could reduce your collision and comprehensive coverage by 15 to 30 percent. A $1,000 deductible could save 40% or more.
Seek Out Specific Discounts - Insurance companies offer various discounts to safe drivers. These discounts can be given to drivers for low mileage, antitheft devices, driver's education courses or defensive driving courses, long-time customer, owning more than one car, no accidents in three years, no moving violations in three years, student drivers with good grades and more.
Bundling Policies - Many insurers will give you a break if you buy two or more types of insurance from them. For example, you could get lower rates if you purchase your auto and homeowners' insurance from the same company.
Group Insurance - Some insurance companies offer reductions to drivers who get their insurance through a group plan from their employers, through professional or business trade associations, alumni groups or other associations.
Shop Around - Probably the most important strategy to find the lowest cost of insurance is to shop around. But you need to be very careful because there are a lot of highly advertised insurance companies offering extremely low rates. The coverage they offer is limited and in many cases is designed for drivers who are buying just enough insurance to get by legally.
The best answer for getting the best coverage at the best rates is to talk to your J.P. Perry Insurance agent. They will do the shopping for you. And they will seek out discounts and reduction strategies to get you the best value for your insurance dollars. Let them do the work for you.