How can consumers prepare themselves for car insurance rate increases?
There are a few steps car owners can take in order to prepare for the oncoming increase in prices.
- One of the first things individuals should do is look over their existing contracts. Far too often, consumers accept a policy with a default deductible and coverage amounts, without taking the time to consider what fits their budget. There is a wealth of information online that can help drivers peg down exactly what kind of policy works best for them – both in terms of their wallet and needs.
- Do not, however, simply lower your coverage amounts as far as they will go – this can be a costly move in the event of an accident. Adjust your deductible and coverage amounts according to what you can afford and be comfortable with instead.
- Taking a defensive driving course can also result in a significant discount on your policy – the exact amount will vary state-to-state and by company. In New Jersey for example, successfully completing a defensive driving course will typically reduce the cost of the relevant coverage by up to 8%. While defensive driving isn’t free, it is a one-time expense. The decrease in your policy cost will pay for the cost of a class in a short period of time.
- Check to see if you can save money by bundling plans. If you have another line of insurance, it may be worthwhile to consider moving everything under a single company. Often, insurers will provide users with discounts for doing this.
- Finally, shopping around is often the most solid piece of advice one can give to individuals with insurance policies. If you’re up for renewal, check to see if your annual premium is going up and by how much. Then see if you can land a better deal with a different company. The cost of auto insurance can vary greatly so check your policy carefully.