Tips to save money on car insurance
Motor Vehicles Accidents - January 23, 2024 by Horwitz, Horwitz & Associates
Realizing how much of your hard-earned paycheck goes to paying insurance premiums yearly is staggering. It’s easy to forget the cyclic costs of car insurance, taking money from our savings and expendable cash each month. Still, this is a necessary expense since annual insurance premiums ensure you have coverage for an accident.
Horwitz, Horwitz & Associates continuously seeks ways to benefit the community and offers these tips to save money on car insurance. A Chicago car accident lawyer can also guide financial recovery from the cost of damages in a car accident resulting from negligence.
Does the way I drive affect my insurance costs?
Daily small choices can make a difference in saving money on auto insurance. Making simple changes behind the wheel of a car can lead to dramatic savings. Here are some useful recommendations:
- Leave 10 minutes earlier for your commute.
- Drive the speed limit, even when you’re running late.
- Save the calls until you arrive where you’re going.
- Don’t let what’s happening in the car distract your attention from what’s happening on the road.
The most valuable lessons we have learned from our clients are about the impact of these actions on lives and the cost of insurance. A speeding ticket raises insurance premiums by an average of $552 annually. Multiple tickets often result in the loss of safe driver discounts. Distracted driving that causes an accident can push rates even higher.
Does the kind of car I drive impact auto insurance costs?
Every automobile has a safety rating, and the Insurance Institute for Highway Safety (IIHS) provides these ratings along with a percentage of claims filed for each vehicle compared to the average number of claims for a vehicle class. Your rates can increase if your car also appears on a list of the most stolen automobiles.
Can I pay by the mile?
Chicago and many of its surrounding cities are walkable, resulting in individuals driving less. A rise in rideshare companies also decreases the use of personal vehicles. Determine the average number of miles driven a month and compare rates for coverage by the mile as opposed to a standard policy. Many insurance companies offer this option because a car that is not driven is less likely to be involved in an accident.
Should I shop around?
Even the most conscientious drivers without infractions have recently experienced insurance costs rising. A tip to save money on car insurance is to shop around. Insurance companies want your business, and the cost of insurance premiums can significantly vary from company to company. Some give better rates if you have low annual mileage, so if you work from home, this could benefit you.
Can I raise my deductible?
A deductible is the upfront costs you pay out of pocket to repair your car after an accident. Raising the deductible amount can be a significant source of savings. It is critical to consider how much available income you have and feel comfortable paying in case of an accident and you need your automobile repaired.
How can my credit rating impact my insurance?
A driver with a poor credit rating could still pay higher premiums even if they have never been involved in an accident. A FICO score is a number that predicts how likely an individual is to pay back a loan and any other bills, like an insurance premium. How can you save money on car insurance by improving your FICO score?
- Pay monthly bills on time.
- Don’t max out your credit, if possible.
- Only apply for the credit limit you need.
The lower the FICO score, the higher car insurance rates can be. This practice is allowed in Illinois and permitted by federal law. Illinois requires an insurer to notify customers if their credit rating is used to determine car insurance premiums.
Can I combine insurance coverages?
Bundling coverage allows individuals to save money using the same insurance company for multiple policies. Most individuals require multiple coverages for their property. You may be able to save money on auto insurance by bundling this coverage with:
- Homeowners insurance
- Renter’s insurance
- Boat or motorcycle insurance
- Life insurance
Bundling a policy and the potential savings are impacted by many factors that affect your auto insurance rates. Combining policies makes it simpler to organize and keep up with insurance payments. Bundling can also incentivize the insurance company not to drop you after multiple car accidents or speeding tickets.
Want more tips? Call us.
Illinois’s fault-based laws assign a percentage of fault to each driver in an accident. The higher the percentage of fault given to you, the higher your insurance rates can climb. Call (800) 985-1819 to schedule a free consultation with Horwitz, Horwitz & Associates to discuss fault in a Chicago car accident, the damages sustained in the crash, and how these factors can impact car insurance costs.
