Imagine this: You’ve just been involved in an accident. As you step out of your car to assess the damage, you realize that the injuries you’ve sustained are worse than you expected. In that moment, while the shock of the situation sets in, your mind races to another concern—how is this accident going to impact your insurance premiums?
Unfortunately, this scenario is all too familiar for many Americans each year. After an accident, especially one you’re responsible for, your rates can skyrocket, leaving you with a hefty increase in your auto insurance premium.
Typically, insurance companies will raise your premium by 20 to 40 percent after an at-fault accident. While that may not seem like much at first glance, over time it can add up. So, it’s crucial to explore ways to reduce your premium following an accident.
Here are some strategies that can help lower your rates:
Tip #1: Shop Around for Better Rates
Start by comparing your current policy with offers from other auto insurance providers. Insurance companies are highly competitive, and each one has different coverage options and pricing structures. What one insurer may penalize you for, another might not.
Once you’ve gathered quotes from other companies, reach out to your current insurer and see if they can offer any rate reductions. Many insurers are willing to negotiate, especially if you express interest in staying with them. If another company offers a better deal, don’t hesitate to bring it up with your insurer—often, they’ll adjust your policy to keep your business. If they don’t, it might be time to consider switching.
Tip #2: Adjust Your Deductible
Another way to lower your premium is by adjusting your deductible. Increasing your deductible means you’ll pay a lower premium each month. However, keep in mind that in the event of another accident, you’ll have to pay the higher deductible out-of-pocket before your insurance kicks in.
Tip #3: Complete a Driver Safety Course
Taking an accredited driver safety course can not only improve your driving skills but also potentially lower your insurance premium. Many insurance providers see this as a positive step toward becoming a safer driver. While the specific courses and discounts may vary depending on your state, it’s always worth checking with your insurer to see if they offer a discount for completing a course.
Tip #4: Bundle Multiple Vehicles
If you own more than one vehicle, consider adding them all to your policy. Most insurers offer multi-vehicle discounts, which can significantly lower your overall premium. This is an easy way to save without having to make drastic changes to your coverage.
By following these tips, you could see a noticeable reduction in your premium rates. It might take some time and effort to shop around and adjust your coverage, but the savings could be well worth it in the long run. Keep these strategies in mind, and your wallet will thank you! Want to take the next step in your auto insurance? Start here!