While you can’t control all the factors affecting your auto insurance premium, there are still plenty of ways you can save when selecting a policy.

Working with a local insurance broker will ensure you find the right type of auto policy at the best possible price.

So whether you’re in the market for new auto insurance or are considering switching plans, make sure to discuss the following items when reviewing your policy.

Amount of Auto Coverage 

While coverage requirements vary depending on where you live and affect overall costs, most states require liability insurance at a minimum. This type of coverage will cover you in case of an accident that results in injury, death, vehicle/property damage, and legal fees.

Asking your local broker to explain and recommend coverages will guide you in getting precisely what you need and help keep premium costs to a minimum.

Auto Insurance Discounts

Auto insurance is based on a “risk rating,” which is a calculation used to determine the likelihood that you will make a claim in the future. Some of the variables part of this equation include age, gender, driving record, auto insurance score, and vehicle storage.

Though there isn’t a ton of extra room to move your risk rating, there are discounts designed to help lower your premium. Some auto policy discounts to ask about include:

  • Safe Driver
  • Multi-policy
  • Multi-car
  • Good Student
  • Homeowners

Asking your broker what savings are available is crucial in the beginning as they can run through every discount available for you and make sure you’re getting the best deal possible.

Auto Insurer Comparisons

Once you’ve determined the right coverage options, it’s important to get quotes from multiple insurers. This is where working with your local insurance broker will really pay off.

Local insurance brokers have a network of trusted partners that provide discounted rates for specific types of coverage and they will know which insurers will be able to provide you with the best premium for the right coverage you need when shopping.

High-Deductible Plans

One way to reduce upfront insurance costs is to raise your deductible, meaning you’ll be paying more out of pocket if you ever have to file a claim.

While there is always a risk-reward factor to consider, if you are a safe driver, have a clean driving record, and can afford to pay higher costs in the event of an accident, then it may be worth considering a high-deductible plan.

Your insurance broker will be able to give you the best insight into what’s right for you and present you with both the pros and cons of this option.

Driving Mileage

A large part of how insurers calculate auto insurance premiums has to do with how many miles you drive per year.

If a life event has happened that has changed the amount of time you spend driving make sure to notify your insurer as they may potentially cut your rate. The fewer miles you drive per year, the less your insurance should be.

Vehicle Safety Ratings

In the market for a new vehicle? Vehicles with higher safety ratings can help reduce premiums, while vehicles with lower safety ratings and higher maintenance costs typically come with higher premiums. You can check out your vehicle’s safety rating here.

Before making a purchase, it’s worth talking to your broker about the different premiums available for each model of vehicle you’re interested in and their associated safety ratings. This way you can determine which is the most cost-effective to insure.

Credit History

Before shopping around for new auto insurance, make sure you have been maintaining good credit habits.

Most insurers will look at your credit history when determining your premium, and the better the credit you have, the better the price you will often receive.

If you don’t have great credit, your broker should be able to provide you with some advice on how to improve your credit to help lower your rates over time.

Policy Bundles

A lot of insurance companies offer bundled insurance packages to help save money. For example, you can bundle your home and auto policies together through the same insurer and receive substantial discounts for both premiums.

However, never assume that bundling is the cheapest option. There are pros and cons when bundling insurance policies and working with your broker will help you determine if bundling is the best option for you.


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