If you have an older vehicle, you can also reduce the optional insurance coverage for your vehicle. A good rule of thumb is to find out the current value of your vehicle and subtract the deductible amount from your car insurance policy. If that final amount exceeds what you pay for auto insurance over the term of your policy, keep comprehensive and collision coverage. If the amount of your auto insurance policy exceeds the value of your vehicle minus the deductible, it may make financial sense to remove those coverages from your policy.
If the numbers are close, assess your financial situation and make a decision based on your risk tolerance. There are several ways you can save money on your car insurance. Insurance companies offer specific discounts, grant account credits, or consider a variety of preferential qualifying factors for which you may or may not be eligible and that may lower your car insurance premium. Take our 3-minute questionnaire and talk to an advisor today.
Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the actions they should take next. The average American spends about 2.6% of their annual income on auto insurance, which represents a significant bill for many households. However, with the rise of remote working, many drivers' habits have changed, and so may other factors, such as the cost of car parts and repairs, that could affect the cost of their auto insurance policy.
If you haven't compared rates or evaluated your coverage recently, you may be overpaying for car insurance. While reducing your monthly payment may seem complicated, Bankrate can help by offering you some simple tips to reduce your premium. If you have a vehicle, one of the biggest expenses you'll face each year is renewing your car insurance. For example, you might have purchased a used vehicle a few years ago and, at that time, you chose full-coverage car insurance with collision and comprehensive coverage to insure it.
Many Massachusetts insurance companies, such as MAPFRE, offer discounts if you pay your insurance for the year in full when renewing it rather than in monthly installments. If you're wondering how you can reduce your household budget, you might be thinking about how to save money on your car insurance premiums. Because your insurance company will offer you multiple options for your deductible amounts when you buy car insurance, it may be worth considering higher deductibles to lower your premium. The vehicle you drive affects your car insurance premium, especially if you purchase collision coverage and comprehensive coverage.
Because these factors, as well as others, such as the make and model of the car you drive, influence the underwriting process and the final rate you pay, the best provider of cheap car insurance will be different for everyone. Quote comparisons can be very useful in determining which auto insurance company offers the best rate for the coverage you want, and could make it clear that you're paying too much for coverage. While many people first consider the fixed price and the price of gas when it comes to the cost of owning a car, car insurance rates are also important. If you've had any major changes in your life, such as getting married, moving to a new location, or changing trips, you could review your car insurance policy to make sure it reflects your current lifestyle.
Remember that your independent agent is a valuable resource for saving money on car insurance in Massachusetts. Comprehensive insurance pays if your car is stolen or damaged by storms, acts of vandalism, or when hitting an animal, such as a deer. To analyze the importance of comparing prices, NerdWallet compared the rates of 35-year-old drivers who take out full-coverage insurance from the country's largest insurers. To participate, use an app or install a small device in your car that transmits data to the insurance company.