How to Get the Best Rate on Auto Insurance
If you pay for auto insurance, you’ve likely noticed your bill increasing over the last several years. Prices for auto insurance have risen significantly across the United States since 2020 and are projected to increase another 17% in 2025. While that’s lower than the 26% reported in 2024, it’s still an increase that can cause financial stress and put a dent in reaching those financial resolutions we made back in January–we’re all still working on those, right? 😉
Why Does Auto Insurance Cost So Much?
Auto insurance rates are personalized based on factors like your age, vehicle type, driving history, coverage, and where you live. However, post-pandemic inflation has caused supply chain issues, production changes, and rising material and labor costs, which have also led to an increase in premiums.
Contributing Factors to Increased Premiums
Here are other contributing factors that can increase the amount you pay for car insurance:
- A decrease in your credit score
- Receiving a traffic violation
- Being at fault in an accident
- Gaps in your insurance coverage
- Conviction of a DUI
- Insuring a teenage driver
By understanding these factors, you can better navigate the complexities of auto insurance and potentially find ways to reduce your premiums.
How Can I Get the Best Insurance Rate?
While auto insurance is a necessary expense, paying the highest amount possible is not. Use these tips when insurance shopping to ensure you get the most out of your money:
- Compare Costs: Rates can vary significantly between insurers, so it's crucial to compare quotes from multiple companies. It’s recommended to obtain at least three quotes to ensure you're getting the best deal.
- Bundle Up: Take advantage of multi-line discounts by bundling your auto and homeowners' or renters' insurance.
- Review Your Deductible: A higher deductible means you'll pay less in premiums because you're taking on more of the cost if you file a claim. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage costs by 15% to 30%.
- Employer Deals: Check if you can get reduced rates through your employer, trade group, or alumni association.
- Check for Discounts: See if your profession, mileage usage, credit, educational background, good driving record, or another trait qualifies you for additional discounts. Some insurance providers have good driver discounts, multi-car discounts, and discounts for safety features like anti-lock brakes and airbags.
- Maintain a Good Credit Score: Insurers often use credit-based insurance scores to determine premiums. Maintaining a good credit score can help you secure lower rates.
How Else Can I Save When It Comes to My Car?
Buying and maintaining a car is a significant investment that’s expensive and can bring on a lot of stress. Here are some of the tools and resources Credit Human has that can make a difference:
- Shopping: AutoSMART from Credit Human helps you find the best deals on vehicles, ensuring you get the most value for your money.
- Financing: Choosing the right auto loan from Credit Human can save you a substantial amount in interest and fees. We have competitive rates and flexible terms to help finance a vehicle while maintaining your financial goals.
- Maintenance: healthCAR is a monthly subscription-based vehicle service contract that helps protect you from costly vehicle repair expenses. It is designed to keep you in your vehicle and keep your vehicle on the road longer.
- Personalized Guidance: We know securing the best pricing for your auto insurance is top of mind when you’re buying a car, and we’re here to help you every step of the way. For personalized guidance on the ways you can save, visit your nearest Financial Health Center.