Be prepared for an increase in your auto insurance premium when you receive your renewal statement this year, regardless of your driving history or how frequently you drive. Even the top vehicle insurance companies have planned for premium hikes in 2023 due to the cost of car repairs, medical expenses from injuries, and other factors.
Here are some suggestions for getting the most out of your auto insurance, even if you might not be able to avoid paying extra.
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Driving less? Do some research on pay-per-mile insurance
Maybe you’re not driving as much because some days you work from home. Or you’re taking more Ubers. In any case, you might wish to experiment with a different approach to vehicle insurance pricing, such as pay-per-mile coverage.
The general process is as follows: You pay a monthly base payment in addition to a per-mile fee. Depending on how much you drive, your monthly bill will change. For instance, your monthly payment would be $70 ($40 base plus 600 miles x $0.05 = $70) if you drove 600 miles in a month at a $40 base cost and a $0.05 per mile charge.
Yet, you can wind up paying more each month than with a conventional auto insurance policy if you end up going back to work and making a long daily drive. If that does occur, look around once more for the finest insurance for your requirements.
Do you mind if your driving is observed? You might make significant savings
Usefulness-based insurance (UBI) may be worth a try if you’re searching for a big vehicle insurance discount.
Drivers believe that their past driving history, mileage, and driving safety should be the top three rating elements, according to a study by the analytics firm Arity. Several factors, especially careful driving, are taken into consideration by usage-based insurance.
UBI tracks your driving habits using telematics (through a plug-in or app). Your score will determine whether you get a discount. Due to the fact that all of the big insurance providers now provide a program, UBI is more accessible than ever.
Normally, joining might result in a discount of up to 10%. You can receive a fairly good discount if you demonstrate excellent driving behavior and receive a good driving score. For instance, Nationwide’s SmartRide offers discounts of up to 40% off if you can demonstrate that you are a safe driver.
But in order to benefit from a UBI program, you might need to be a particularly good driver. A TransUnion study found that only 48% of participants in telematics programs see a reduction in their auto insurance rates, while the costs for 30% remain same.
But in order to benefit from a UBI program, you might need to be a particularly good driver. A TransUnion study found that only 48% of participants in telematics programs see a reduction in their auto insurance rates, while the costs for 30% remain same.
While tickets for poor driving are uncommon, it can be worthwhile to try for a sizable discount. (Drivers in Progressive’s Snapshot program for auto insurance may be charged a higher cost if their driving is subpar.)
You are free to opt out of the UBI program if you decide it isn’t a good fit for you, for example if you brake more forcefully than is preferred.
Watching Out for Teen Drivers
Although adding a teen driver will inevitably result in an increase in insurance costs, you may prevent even higher rates by doing everything in your power to help them become the greatest drivers they can be for their age.
There are teen-specific programs offered by several motor insurance companies. While some programs concentrate on driver training, others will supervise the teen’s driving.
- Allstate: teenSmart
- American Family: Teen Safe Driver program, includes monitoring
- Hanover: SafeTeen, includes monitoring
- State Farm: Steer Clear
Talk to your insurance company to see what offerings they have for teenage drivers, and then shop around to make sure you’re getting quotes from the best insurance companies for teen drivers.
When making deliveries, make sure you have insurance.
Check with your insurance provider to be sure you have the appropriate level of coverage before having your adolescent deliver pizzas or using your car for a side gig.
Insurance companies view making deliveries in your car as a business use. If you get into a car accident while working a job like deliveries, your auto insurance provider can reject the claim, forcing you to pay for car repairs and medical fees out of pocket. You can prevent a potential financial catastrophe like this with the correct coverage.
Think Twice Before Dropping Coverage
It’s wise to routinely evaluate your auto insurance policy to ensure that the limits, coverage, and deductibles still satisfy your requirements. It’s a good idea to compare vehicle insurance quotes and shop around when it’s time for renewal.
If you have an older vehicle, you might consider forgoing collision and comprehensive coverage to reduce your auto insurance costs.
But take care: Cancelling your insurance could result in a coverage gap. For instance, if you don’t have collision insurance and you collide with a fence or a guardrail on a snowy day, you’ll have to foot the money for the necessary auto repairs alone.
Here is a quick look at what comprehensive and collision insurance cover:
| Collision insurance | Comprehensive insurance | |
|---|---|---|
| Car damage from hitting a vehicle or object, including a building, fence or pole | ✓ | |
| Damage to car from upset, like flipping or rolling the car | ✓ | |
| Theft of car or car parts | ✓ | |
| Glass damage for instance a broken windshield | ✓ | |
| Non-crash damage such as fire, flood, hail, vandalism, falling objects (like a tree branch) and natural disasters (such as a tornado) | ✓ | |
| Striking an animal, for example a deer in the road | ✓ |
In an Accident? File a Contactless Car Insurance Claim
If you need to submit a car insurance claim, check to see if you may do it online. Usually, your insurer’s mobile app or website will let you accomplish this. This feature is now provided by several insurers.
You might be able to handle the entire claims procedure from the comfort of your couch, depending on the intricacy of your claim.
For instance, you could be able to submit pictures of the damage to your car, have your insurer use them to estimate the cost of repairs, and then receive an immediate payment through a platform like Venmo.
Don’t Miss Out, Download the Insurer’s App
Car insurance companies’ mobile apps nowadays are loaded with goodies. You not only have proof of insurance and policy documents at your fingertips but also, with many companies, the ability to easily file a car insurance claim.
