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Car insurance rates are expected to rise 8.4% in 2023 — here’s how to save
Use these three suggestions to save on your auto insurance.
In 2023, the price of auto insurance will increase. ValuePenguin, a personal financial website, predicts an 8.4% increase in insurance prices nationwide, resulting in an average annual premium of $1,780 for full coverage.
ValuePenguin identifies only two potential causes for the potential rate increases: more expensive autos and more expensive repairs. If these forecasts come true, you will also have to pay extra for your insurance coverage as workers resume their daily journeys and storm-related claims rise as a result of climate change.
Don't give up your automobile for a bus pass just yet if you possess a car and are already annoyed by the price increases from the previous year. Here are three strategies to help you find the greatest auto insurance offer possible.
Combine your auto insurance with your renters' or homeowners' insurance.
If you already have renters' or homeowners' insurance, you may be able to save money on your auto insurance by purchasing it from the same provider.
By combining their homeowners insurance with their auto insurance, drivers save an average of 16% on their insurance premiums, per InsuranceQuotes data.
It's a good idea to compare rates from a few different insurance providers when thinking about this choice to ensure that the coverage is the same. Then contrast the two, looking for the one with the broadest scope of coverage, the greatest coverage limits, and the most affordable deductible.
It's important to keep in mind that bundling doesn't always result in lower premiums for your policies, so make sure to do the math to determine whether you're actually saving money when you combine your auto insurance with your renters or homes insurance.
If you don't currently have homeowners insurance and are seeking for a provider, CNBC Select has chosen the top options available. One of our top picks, Nationwide, provides savings for having smoke detectors or other qualified safety equipment in your home, as well as discounts for bundling several insurance policies.
Use incentives offered to low-mileage drivers.
You might be able to reduce your auto insurance costs if you don't drive to and from work every day. Accurately calculating your annual mileage could have a significant impact on the cost of your insurance.
The likelihood that something could go wrong with your car increases as you drive more. Insurance companies increase your rate to account for that risk. To lower your auto insurance prices, it can be worthwhile to cut back on how often you drive.
Whether a person is considered a "low-mileage driver" varies by company (and some don't incorporate mileage into premiums at all), but often, individuals who drive fewer than 7,000 to 10,000 miles annually qualify. According to Insure.com, a driver who logs 10,000 miles a year will pay 7% more than one who logs 7,500 miles.
If you want to reduce your mileage and lower your premiums, pay-per-mile auto insurance may be a possibility. USAA, which was named among CNBC's best pay-per-mile options, is one
Choose autopay or make a complete payment for your premium
Even though auto insurance can be very expensive, if you can afford it, paying your premium in full could save you some money.
A lot of insurance providers charge a fee if you choose to pay your insurance premium in monthly installments. based on information from a website that compares vehicle insurance The Zebra estimates that paying in whole can save you up to 12%.
However the cost of car insurance is not little. When it comes time to renew your insurance, setting aside money each month may assist. You might be able to save enough money in a high-yield savings account to cover the full amount of the next due bill while also earning interest.
Choose the savings account that provides the best rates and features for you to help your money grow.
If full payment is not possible, you might be able to benefit from an automatic payment discount if it is offered.
To sum up
Even though the cost of car insurance may be increasing, you can still save money by comparing many rates, improving your credit, and, if necessary, boosting your deductible.
From: Insurance Journal