How can I reduce my $180/month car insurance?
I own a 2021 Ford that I bought new, and it includes most standard safety features, except for a blind spot indicator. I haven’t had any major accidents—just one deer-related claim. At 22 years old, I realize that my age contributes to higher premiums, but I still think $180 seems excessive. I plan to take a class that offers a discount, and I also have a safe driving monitor in my car. Am I overpaying, or is this typical? What other steps can I take to lower my insurance costs?
It can definitely feel overwhelming when your car insurance premium seems high, especially if you’ve maintained a clean driving record. Here are several strategies you might try to lower your $180/month car insurance:
Compare Insurance Providers: Not all insurance companies assess risk the same way, so it’s worth shopping around. Get quotes from multiple insurers to see if you can find a better rate.
Ask about Discounts: Many insurance companies offer various discounts. In addition to the class you’re planning to take, inquire about discounts for being a safe driver, bundling policies (like home and auto), or for having certain safety features in your car.
Increase Your Deductible: Opting for a higher deductible can lower your monthly premium. Just ensure that you can afford the deductible amount in case of an accident.
Reduce Coverage on Older Cars: If your car’s value depreciates significantly over time, you might consider dropping collision or comprehensive coverage.
Limit Mileage: If you drive less than average, let your insurer know. Some companies offer low-mileage discounts.
Take Advantage of Usage-Based Insurance: Since you mentioned having a safe drive monitor, check if your insurer offers a usage-based insurance option that can reward safe driving habits with lower rates.
Maintain Good Credit: In many states, insurers use credit scores to help determine rates, so maintaining a good credit score can also help reduce your insurance costs.
Join an Alumni Association: Some colleges and universities offer car insurance discounts to their alumni, so if you graduated recently, it might be worth checking.
Review Your Coverage: Make sure you aren’t paying for coverage that you don’t need, such as rental car coverage if you have other options or roadside assistance if you’re already covered through a different membership.
Check for Group Insurance: Some employers or organizations provide group insurance rates which can be more affordable.
Since you’re 22, being in a younger age bracket can typically increase rates, but these strategies might help you find savings. Good luck!