How can I reduce my car insurance premium of $180 per month?
I own a 2021 Ford that I purchased new. It includes most standard safety features, except for blind-spot monitoring. I’ve never been in a major accident; my only claim was for damage caused by a deer collision. At 22 years old, I understand this likely impacts my rate, but $180 still feels steep. I’m planning to take a driving course that offers a discount, and I also have a safe driving monitor installed in my vehicle. Is my insurance premium too high, or is this the norm? What other steps can I take to lower it?
It sounds like you’re already taking some great steps to lower your car insurance, but there are definitely more strategies you can consider to help reduce your monthly premium. Here are some suggestions:
Shop Around: Different insurers have different rates, so it’s always a good idea to compare quotes from multiple providers. You might be surprised at the savings you can find.
Increase Your Deductible: If you can afford it, consider raising your deductible (the amount you pay out of pocket in the event of a claim). A higher deductible typically lowers your premium.
Check for Discounts: In addition to the safe driving class you’re planning to take, ask your insurer about other potential discounts. These could include discounts for good grades (if you’re a student), bundling insurance policies (car and renters or homeowners), or having specific safety features on your vehicle.
Maintain a Good Credit Score: Many insurers take credit scores into account when determining premiums. Try to improve your credit score if possible, as better credit can lower your rates.
Limit Mileage: If you can drive less, some insurers offer lower rates for low-mileage drivers. Consider carpooling or using public transportation when possible.
Avoid Unnecessary Coverage: Evaluate your policy to determine if you have coverage that you may not need, such as roadside assistance if you have that service through another provider.
Consider Usage-Based Insurance: Since you already have the safe driver monitor, check if your insurer offers a usage-based insurance program that could reward your safe driving habits.
Review Your Coverage: Make sure you’re not paying for coverage that’s too high for the value of your car. As it depreciates, you might be able to lower your collision and comprehensive coverage limits.
Ask About Other Programs: Some insurers have programs for young drivers or those with good driving records. Be proactive and inquire what your specific insurer offers.
Stay Claims-Free: Since you already mentioned having only a minor claim, keeping your record clean moving forward will help you qualify for better rates when you’re eligible for renewal.
By exploring these options, you can potentially reduce your car insurance premium further. Good luck!