Keep Your Auto Insurance Costs to a Minimum

According to AAA, the average cost in 2017 to own and operate a vehicle was $706 each month. Given the recent increase in gas prices, that monthly spend is likely to increase in 2018 forcing many New Jersey drivers to look for ways to save money. While you can’t negotiate gas prices, you do have more control over auto insurance costs than what you think. Here are seven tips for keeping your auto insurance costs from skyrocketing.

1. Request multiple quotes

Far too often, drivers purchase an insurance policy when they buy their first car and rarely revisit it, except to pay the renewal. One way to make sure your auto insurance costs don’t get out of control is to request multiple quotes before renewal. By reviewing quotes from multiple companies, you can make sure your current rates and coverage are comparable to other carriers. The easiest way to shop yearly is by working with an independent insurance agency that represents multiple carriers and can do work for you.

2. Consider a higher deductible

A deductible is the amount of money you are responsible for paying before your insurance policy covers a claim. By increasing your deductible from $500 to $1,000, you can reduce your auto insurance rates because you are taking some of the financial risk from the insurance company.

3. Make safe driving decisions

Paying auto insurance costs is a normal part of life that is already expensive. But, adding traffic violations and accidents to your record will only increase your rates and the amount you pay out of pocket for auto insurance each month. If your rates are already higher because of past accidents or violations, they will eventually be dropped from your record.

4. Take a defensive driving course

Several insurance companies offer auto insurance discounts for completing defensive driving courses. By participating in a defensive driving class, you are telling the insurance carrier you are invested in being a safe driver and they consider you less risky to insure.

5. Drive less

Nearly every insurance company asks how many miles your daily roundtrip commute is. The fewer miles you drive, the less your auto insurance costs because you spend less time on the road. Consider carpooling to work or see if working from home is possible to lower your daily miles.

6. Ask about available discounts

Ask your insurance agent for other possible discounts. Some insurance carriers offer premium discounts form antitheft devices, good students, military, or having your home and auto insurance with the same carrier. Even if you don’t qualify immediately, you have the proper information and can take steps to be eligible in the future.

7. Work on your credit score

Some insurance carriers base your auto insurance rates on your credit score. If your current credit is mediocre, create a plan to improve it over the course of a year. Pay bills on time, pay off credit cards, and refrain from opening new accounts to keep your credit score moving up.

Do you have questions about your auto insurance? Contact the team at Schechner Lifson Corporation today. We’ve been helping New Jersey residents with their insurance needs since 1903 and are ready to help you.