Simple Ways to Save on Car Insurance Premiums
Having auto coverage makes you feel safer on the road — at least when it comes to your financial protection. And though that peace of mind comes with a price tag, there are many ways you can save money.
Your premium for car insurance can vary by hundreds of dollars — and the more you know, the more ways you’ll know how you can save! There are a number of factors used to determine your car insurance rate, and though some of those factors are out of your control, we’ve highlighted some simple ways you can save on your car insurance premiums.
Tips to Lower Your Car Insurance Premium
From auto insurance discounts to simply being savvy about your options, there are many ways you can save on your car insurance:
Ask about discounts. No matter where you purchase your car insurance coverage, you’ll want to ask about available discounts. Discounts are the easiest way for you to lower your insurance rate — and it’s really simple to get them! In fact, at American Family Insurance, we offer a discount simply for switching providers and choosing us as your insurance company. Learn about the various car insurance discounts you can receive as an American Family Insurance customer. Here are a few:
- With our multi-vehicle discount, if you insure more than one vehicle with us, you may qualify for a reduced auto insurance premium on your cars and trucks.
- If you have an active policy with another carrier and receive a quote from us at least seven days before the policy goes into effect you could be eligible for our early-bird discount.
- A good driver means no accidents, violations, or claims within the last 5 years. Sound like you? Congratulations! You may be eligible for our good driver discount and earn a reduced premium in certain states.
Bundle and save. You may have heard the term “bundling” when it comes to insurance. But what is bundling? It’s actually one of the simplest ways you can save on your insurance! Bundling is when you buy multiple insurance products with the same provider, like your auto and home, auto and renters, or even your auto and life insurance. Bundling makes things simpler for you, since you can make one convenient payment to protect what matters most to you.
Want to find out more about bundling? Take a look at our insurance bundles FAQs to educate yourself on this smart move.
Get to know KnowYourDrive. What if you could lower your car insurance premium simply by practicing safe driving habits? Good news — you can! American Family Insurance offers a usage-based insurance program called KnowYourDrive. How does it benefit you? Basically, you’ll get a discount on your insurance premium based on how safe of a driver you are.* When you sign up for the program, we’ll send you an exclusive invitation to download our app at no cost. The app tracks your driving behavior, shows your progress and helps you learn safer driving habits. The better driving habits you have, the higher a discount you can receive!
Find out more about how KnowYourDrive helps you take control of your auto insurance. In fact, get started now and you could earn an introductory five percent discount on your car insurance!
Safety first. If your vehicle is equipped with safety features — like factory-installed airbags, dashboard cameras and more — you could get a 10 to 30 percent discount on your policy. Just ask your agent to see if you’re eligible.
Take advantage of Autopay. Autopay is another effortless way for you to save on your premium — and it even helps you avoid late payment fees. With autopay, your payments will be automatically deducted from your checking or savings account. So not only can you earn a discount with autopay, but you can avoid late payment fees, too! Check and see if your insurance company offers a discount for enrolling in autopay.
If you want to set up autopay with American Family, simply enroll in My Account, register your account(s) and set up your payments. What’s My Account? It’s all about making your busy life a little simpler. When you enroll, you’ll get easy access to your policies, bills and claims. You can even use My Account to contact emergency roadside assistance if your car is stranded on the road.
Go Paperless. Want to help save a few trees along with saving some money? Opt for paperless billing. Ask your agent if you qualify, and if so, you’ll need to set up paperless billing within 10 days of setting up your policy. The steps are simple to follow and it only take a few minutes. Here’s how paperless billing works.
Pay in full. Want to shave some major bucks off your premium? Of course you do. American Family offers a full-pay discount when you pay your policy in full at the time of purchase.
Know what you need. You might not need particular coverages once your car reaches a certain age and value. For instance, do you need collision insurance on an older car? Maybe not. Your insurance agent can work with you to help you determine the best coverages for your needs. Taking the time to do some research, ask your agent questions and know what you’re paying for on your policy can help lower how much you pay for car insurance.
Raise your deductible. Your deductible is the amount you’ll pay out of pocket before your insurance company covers any financial loss from a car accident. When you set your car insurance deductible, you’ll choose either a high or low deductible. A lower deductible means you’ll pay less out of pocket after filing a claim, but your premium rate will be a little higher per pay period. On the other hand, a higher deductible means you’ll pay more out of pocket if you file a claim, but your premium will be less per pay period. So to lower how much you pay for your car insurance, consider raising your deductible.
Compare insurance costs before you buy a car. One of the factors taken into account when determining a car insurance premium is the value of your car, the cost to repair it, the likelihood of theft and its safety record. So think about how the type of car you buy could impact your insurance rate.
Shop around, research and ask questions. Take your time looking for car insurance. Shop around, get car insurance quotes and don’t be afraid to call up the companies and ask what kind of discounts you could receive. The best way to save money on your auto insurance premium is by being informed and asking questions.
At American Family Insurance, we want to help you understand your coverage and your savings options. Take control of your insurance by connecting with an American Family agent today to learn how you can get quality protection, discounts and peace of mind..
*Discount varies by state. Washington excluded. Customers earn on average a discount of 11%. Program discounts will vary based on driving behavior. The KnowYourDrive discount applies only to the following variable coverages, which are typical for most auto policies: bodily injury liability, property damage liability, collision and comprehensive, medical expense, and personal injury protection.