Notice an increase in your car insurance rate this year? Welp, you’re not the only one.
In the past year, 83% of U.S. drivers experienced a rate bump, according to The Zebra, a car insurance comparison site.
Even more, it found that the average annual cost of auto insurance is now $1,470 — the highest it’s ever been.
Instead of wallowing in despair and hopelessness, it’s time to take action.
2 Ways to Save Hundreds on Car Insurance This Year
Sure, there are a number of wacky tactics you can try that might inch down your rate. But instead of etching your VIN into your window to save a few dollars, why not call in the big guns?
Here are two simple steps that could save you hundreds on car insurance this year.
1. Quickly Compare and Find Better Rates
When’s the last time you checked out other car insurance rates?
It’s easy to settle with what you’ve got (because who wants to go through the process of switching providers?), but you might be paying way too much right now.
The Zebra, an online car insurance search engine that offers “insurance in black and white,” compares your options from 204 providers in less than 60 seconds.
Head over to The Zebra’s search platform. Enter your car’s year, make and model, and your ZIP code. Continue on to answer questions about your driving habits, your car and your life.
If you find a quote and policy that looks better than what you’ve got, you can seamlessly switch providers right within The Zebra.
We chatted with Artie Januario who’s saving $360 a year — all because he took a few minutes to compare rates.
2. Switch to a Pay-per-Mile Insurance Provider
If you don’t drive a whole lot, here’s another strategy to pay less for car insurance: An insurer called Metromile lets you pay based on the amount of miles you drive per day.
It makes sense: If you aren’t spending as much time in the driver’s seat, you shouldn’t have to pay as much. For example, if you only drive 5,000 miles per year, you could save $611, according to Metromile’s calculations.
Metromile is ideal for people who drive less than 30 miles a day, or about 200 miles a week.
A few things to keep in mind:
- Your car must be a 1996 or newer to qualify.
- After signing up, the company will mail you a free device that plugs into your car and tracks mileage. (That’s how it saves you money!)
Rates start at $29 a month. Start by snagging a free quote.
The Bottom Line With Car Insurance These Days?
Although rates continue to increase, there are more and more ways to find big-time savings, so don’t give up just yet.
Carson Kohler ([email protected]) is a staff writer at The Penny Hoarder.
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