It’s been said that death and taxes are the only inevitabilities in life, but we may as well add auto insurance to that list. Of the many recurring expenses we face each month, auto insurance likely ranks among the most annoying, simply because the average driver doesn’t file a claim very often—as seldom as 17 years, according to some estimates.
We all buy auto insurance as a matter of course, but what do we really know about it? How much shopping around do we really do, and to what extent do our unique circumstances impact how much we pay?
What follows is hardly an exhaustive look at car insurance, but hopefully it will shine a light on some of the lesser known aspects of shopping around for insurance.
Currently, the average American driver spends over $1,500 every year on car insurance. The relatively smaller monthly payments make this a somewhat easier pill to swallow, but that’s still a big chunk of change that a lot of people would be understandably happy about trimming down if they can.
But how does this number fluctuate as you move through the country? There isn’t much rhyme or reason, but different states definitely pay different amounts. Here’s the breakdown of the best and worst states for car insurance:
Best States:
• Ohio - $926
• Maine - $964
• New Hampshire - $983
• Idaho - $1,053
• Iowa - $1,058
Worst States:
• Michigan - $2,551
• West Virginia - $2,518
• Georgia - $2,201
• Washington D.C. - $2,127
• Rhode Island - $2,020
So that’s what we’re paying. Now the real question: what can we do about it?
Common Car Insurance Discounts
Depending on the type of car you have, and which features it has, you might be automatically eligible for discounts you didn’t even know existed. For a closer look, let’s take a look at this infographic, which comes to us courtesy of CJ Pony Parts via the Creative Commons license:
And those are just the discounts that apply to your car and its equipment. So what kinds of things can you do on your end? Simply put, even small changes like when you pay for your insurance could make a big difference:
- Combine your insurance coverage: You could snag a savings of 15% if you opt to combine auto and homeowner’s insurance.
- Renew your policy in advance: Save up to 8% if you renew your policy 7-10 days before it comes up for renewal.
- Remain a loyal customer: With many insurance companies, you become eligible for an automatic discount at the 1-year, 3-year, and 5-year milestones.
This information comes to us from Geico and Esurance, so it should go without saying that your mileage may vary depending on which insurance company you’re involved with. What’s somewhat more universally available these days is the “good driver discount,” which could net you savings of up to 26% depending on how long you’ve gone without an accident.
Making Good Decisions
If that feels like a lot of moving parts, know that it’s just the beginning. You have lots of other options at your disposal too, such as listing teen drivers on just one vehicle, paying for small repairs out of pocket, and maintaining a good credit score—all of which will help to shed a few bucks off your insurance bill.
As we’ve established, buying car insurance is an inevitability of adult life—but that doesn’t mean we don’t have ways to make it hurt a little less.
We all buy auto insurance as a matter of course, but what do we really know about it? How much shopping around do we really do, and to what extent do our unique circumstances impact how much we pay?
What follows is hardly an exhaustive look at car insurance, but hopefully it will shine a light on some of the lesser known aspects of shopping around for insurance.
Who’s Paying What?
Currently, the average American driver spends over $1,500 every year on car insurance. The relatively smaller monthly payments make this a somewhat easier pill to swallow, but that’s still a big chunk of change that a lot of people would be understandably happy about trimming down if they can.
But how does this number fluctuate as you move through the country? There isn’t much rhyme or reason, but different states definitely pay different amounts. Here’s the breakdown of the best and worst states for car insurance:
Best States:
• Ohio - $926
• Maine - $964
• New Hampshire - $983
• Idaho - $1,053
• Iowa - $1,058
Worst States:
• Michigan - $2,551
• West Virginia - $2,518
• Georgia - $2,201
• Washington D.C. - $2,127
• Rhode Island - $2,020
So that’s what we’re paying. Now the real question: what can we do about it?
Common Car Insurance Discounts
Depending on the type of car you have, and which features it has, you might be automatically eligible for discounts you didn’t even know existed. For a closer look, let’s take a look at this infographic, which comes to us courtesy of CJ Pony Parts via the Creative Commons license:
And those are just the discounts that apply to your car and its equipment. So what kinds of things can you do on your end? Simply put, even small changes like when you pay for your insurance could make a big difference:
- Combine your insurance coverage: You could snag a savings of 15% if you opt to combine auto and homeowner’s insurance.
- Renew your policy in advance: Save up to 8% if you renew your policy 7-10 days before it comes up for renewal.
- Remain a loyal customer: With many insurance companies, you become eligible for an automatic discount at the 1-year, 3-year, and 5-year milestones.
This information comes to us from Geico and Esurance, so it should go without saying that your mileage may vary depending on which insurance company you’re involved with. What’s somewhat more universally available these days is the “good driver discount,” which could net you savings of up to 26% depending on how long you’ve gone without an accident.
Making Good Decisions
If that feels like a lot of moving parts, know that it’s just the beginning. You have lots of other options at your disposal too, such as listing teen drivers on just one vehicle, paying for small repairs out of pocket, and maintaining a good credit score—all of which will help to shed a few bucks off your insurance bill.
As we’ve established, buying car insurance is an inevitability of adult life—but that doesn’t mean we don’t have ways to make it hurt a little less.
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