3 Easy Ways to Pay Less For Auto Insurance

As the COVID-19 pandemic spread in the U.S. and people altered their work, social, and travel schedules, many people also began driving less. The unexpected dip in the number of drivers on the road meant less miles being driven and lower chances of an accident. These trends also prompted a number of insurers to offer rebates on premiums for much of the year.

However, those benefits have ended for many drivers, even as coronavirus restrictions remain in place and people continue to drive less. If your policy premium is back to sky-high rates, it might be time to start looking for better rates.

Fortunately, this isn’t as difficult or scary as it sounds. One of the easiest ways is to take advantage of insurance comparison sites like Otto. Not only does Otto allow you to instantly compare companies, it can also help you figure out whether you’re overpaying on your current policy.

What are the 3 ways to get lower car insurance?

While there are tons of savings strategies out there, the three tips we’re about to share are the most effective. Luckily, they’re also pretty easy to take advantage of. The first option is to try negotiating a lower rate with your insurance company. The second option is to shop around and get multiple quotes from different companies. The third thing you can try is to bundle your home and auto insurance.

Ready to start saving? Here’s how each of these choices work.

1. Negotiate a lower rate.

Insurers take all kinds of factors into account when calculating your insurance rate. You probably won’t be able to just ask for a better rate. However, one factor that may be used to calculate your premium is mileage. So if you’re still driving less than you were at, say, the beginning of 2020, you may be able to get a low mileage discount.

Your insurance agent may also be able to find other discounts you qualify for. For example, some companies offer discounts to drivers who complete defensive driving courses, which can usually be done online.

2. Shop around for better rates.

While you may be able to net slightly better rates with available discounts, it might not get you the dramatic reduction you were hoping for. That’s why we always recommend shopping for insurance every six months. It might sound like a lot, but it can help you stay on top of insurance bills. The reason this is such an effective way to save is because premiums vary from year to year between companies. Company A might have better rates than Company B one year, but Company B might offer you a better rate the next year.

This method used to involve a lot of phone calls, but it’s easier than ever now thanks to comparison sites like Otto. Just plug your information into a simple form, and Otto will use its magic to pull the best rates from different insurers. If you’re happy with your current company, you can always take the estimates from other companies back to them to try and negotiate a better rate.

3. Bundle and save.

Don’t forget about bundling during your negotiation! If you hold a homeowners insurance policy, you might be able to score substantial savings by purchasing home and auto insurance through the same carrier. In some cases, you may be able to save up to 25% on your premiums. Of course, don’t forget to account for the fact that you may be able to save more on bundled insurance at other companies. Be sure to do your homework and comparison shop!

Try Otto for yourself and discover the best way to make sure you never overpay for auto insurance again.