Many of us face a major financial hassle twice a year: car insurance.
According to Insurify, an insurance pricing information site, the national average cost of insuring your car is $136 per month.
According to the Insurance Information Institute (III), there are several ways you can reduce your costs:
· Before choosing your coverage, do some research. Different insurance companies charge different rates. Experts recommend checking at least three insurers before making a decision.
· Increase your deductible, which is the amount you must pay before your insurance kicks in. Increasing your deductible from $200 to $500 could reduce your collision and collision damage waiver costs by 15% to 30%. However, always make sure you have enough money in a cash or checking account to pay off any claim that may arise.
“Consider dropping collision and/or comprehensive covers on older cars. If your car is worth less than 10 times the premium, buying coverage may not be cost effective,” says III. “Car dealers and banks can tell you the value of cars. Or you can look it up online at Kelley’s Blue Book (www.kbb.com).”
· Buy your homeowners and car insurance from the same insurer. Many insurers will give you a discount if you take out two or more types of insurance.
· Maintain a strong credit historysince most insurers use it to rate auto insurance policies.
· Benefit from low mileage discounts. Some insurers offer discounts to drivers who don’t use their car often.
· Ask about group insurance. Some insurers offer discounts to drivers who purchase coverage through a group plan from their employer, through professional, business and alumni groups, or from other associations.
· Ask about other discounts, for example for drivers who have not had any accidents or traffic violations for several years. Taking a defensive driving course may also qualify you for a discount.
The cheapest and the most expensive
Insurers also base your insurance on the type of car you drive. In general, the more you pay for the car, the more you pay for your insurance.
According to a report by Insurify, the cheapest car brands are for insurance fiat ($126 per month), Buick ($128 per month) and Subaru ($133 per month).
The most expensive are Alfa Romeo ($255 per month), maserati ($243 per month) and Tesla ($242 month).
Here is Insurify’s ranking of insurers.
1. transparency– best overall. Average cost per month: $135
2. nationwide– best for safe drivers. Average cost per month: $199
3. American family– best for families with teenage drivers. Average cost per month: $234
4. Safeco– best for drivers with bad credit. Average cost per month: $186
5. farmers– best for ridesharing. Average cost per month: $239
6. MetLife– Best for hassle-free claims. Average cost per month: $159
7. Reciprocal freedom– best for accident forgiveness. Average cost per month: $241
8th. mercury– best for personal service. Average cost per month: $232
9. Progressive– best for older drivers. Average cost per month: $147
10 traveler—best for young drivers. Average cost per month: $163