Auto Insurance Costs

Nine Strategies to Lower Your Auto Insurance Costs

Daily travel to work, doing errands, visiting friends, attending family events and more all require transportation.  And the most efficient way to get around town is to drive a vehicle.

Yes, it’s true that ridesharing companies have exploded in popularity, but the convenience of driving cannot be underestimated.

Car insurance is a significant cost to most drivers in Arizona. But with a little effort, there are ways to substantially lower car insurance costs.

Here are nine tactics to consider when selecting auto insurance.

  1. Shop around

Prices vary from company to company, so it pays to shop around. Get at least three price quotes. These days you can usually access information on the internet, or you can do it the old-fashioned way and pick up your phone.

You can also contact an independent agent who offers policies from several insurance companies. They’ll do most of the comparison work for you.

Our team at Olson Insurance is proudly an independent company and we work with a variety of partners. We can assure you will receive the best possible pricing for your policy. Your time is valuable so we always prepare a comprehensive evaluation of all the options available and make the decision on car insurance an easy process.

  1. Higher deductibles

Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible may save you 40 percent or more.

But before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

  1. Bundle

Buying your homeowners and auto coverage from the same insurer can save some serious cash. Many insurers will give you a break if you buy two or more types of insurance from them. You may also get a reduction if you have more than one vehicle insured with the same company.

  1. Current credit rating

Your credit rating affects a variety of items in your life and car insurance is one of them. Most insurers use credit information to price auto insurance policies. So, stay on top of your credit record, check it on a regular basis, and have any errors corrected promptly.

  1. Safe driver discounts

One of the best ways to keep your auto insurance costs down is to have a good driving record. Each car insurance company has a different definition of safe driving. It generally means avoiding “at-fault” accidents, having a clean driving record free of moving violations, no distracted driving tickets, and no other violations such as DUI/DWI.

Maintaining a spotless driving record may reward you with great savings on your car insurance. Not only does it keep your insurance premiums low but, depending on your carrier, it can also earn you a good driver and/or a claim-free discount.

  1. Low mileage discounts

Some companies offer discounts to motorists who drive a lower than the average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work.

  1. Group insurance

Those annoying emails you get from your alma mater or professional organizations may actually be beneficial. Some insurance companies offer reductions to drivers who get their policy through a group plan from their employers, through business and alumni groups or from other associations. Ask your employer and inquire about groups or clubs where you are a member of to see if this is possible.

  1. Other discounts

Companies offer discounts to policyholders for a meeting a variety of parameters. For example, if you have a young driver on the policy who is a good student, has taken a driver’s education course or is away at college without a car, you may qualify for a lower rate.

Always inquire about discounts such as for the following:

But remember, the key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.

  1. Seek suggestions

Ask friends and relatives for their recommendations and read those consumer reviews on the web. A word of caution: pick a company that is financially stable. And don’t shop by price alone. Customer service, response time, and personal attention are intangible factors that are important in decision making.

Helpful Guidance

Finding the perfect blend of coverage and cost can be overwhelming, but unless you plan to become a hermit, it is a necessity for driving. Remember, as a resident of Arizona, the law requires you to have at least the minimum amount of auto insurance

Let our professionals at Olson Insurance leverage our knowledge of multiple insurer’s offerings and rating strategies. We will find you the ideal combination of coverage and pricing. We’ve built our company on the foundation of providing kind of world-class customer service and affordable policies. We can provide you with an insurance package that is specifically tailored to your needs.

Call us now at 623-583-7999 or visit our website for additional information.

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