This summer’s automotive market contains one of the worst climates for money-conscious consumers in recent memory: low inventory and high demand. According to Cox Automotive, new vehicle inventory was down 25% year over year in April, leading many manufacturers to limit the incentives that coax people to dealerships. Shoppers will also find higher costs in the used market now that consumer searches are double last year’s rate. A chip shortage is also squeezing new car production and driving up used car values.
If you can’t wait out this financial bottleneck, you may look to reduce costs in another necessary expense: your insurance. Fortunately, we know of seven ways to reduce premiums without settling for a bare-minimum plan.
1. Safety First: If you avoid wrecks and traffic court, an insurance company can’t ding you for a suspect driving record. But good intentions alone can’t prevent every accident. Fortunately, some carriers offer accident forgiveness for those who maintain good driving practices after running into bad luck.
2. Cut the Mileage: The more a car is on the road, the greater the crash risk — and the higher an insurance premium becomes. Track your mileage and report an accurate count of how many miles you travel to and from work. If the COVID-19 pandemic led to fewer days commuting, inform your insurer of this lifestyle change — and you could see a reduction in your next bill.
3. Buy a Budget-friendly Car: You may be able to afford that eye-catching Porsche or road-dominating Ford F-150 on paper, but prestige comes at a cost. The mechanics of high performance and cutting-edge accessories are harder to replace — and more tempting to steal — which means that you’re adding to your insurance premium. Before committing to your dream machine, make sure your budget can withstand this additional cost.
4. Bundle Your Plans: Car insurance is just one of several policies available to protect your belongings. Many carriers work across multiple product lines — car, home, life, business, boat and so on — and often provide lower premiums to customers who purchase multiple policies. With We Insure, you can get great deals from a wider choice of top-rated carriers, and a reliable advocate and advisor when you need guidance. Speak to your We Insure agent to see if bundling can help you save.
5. Tech Protection: You may be familiar with car alarms and rear-mounted cameras, but today’s vehicles offer even more safety features to minimize injury risk. Forward-collision warnings and automatic emergency braking can sense and stop a car before you even react to it, while adaptive cruise control and lane-keeping assists can help you maintain road rules if you start to drift during a long drive. Investing in these features may lead to a cheaper premium in the long run — ask your We Insure agent about all available discounts.
6. Telematics: Some insurance carriers offer telematics systems that track your driving performance in real time using a small device or mobile app. In return, the insurer offers driving advice and premium reductions, helping you to potentially become a safer driver while saving money — and that could be a win-win for you.
7. Shop Around: Due diligence at the outset of the insurance process can pay off, and this goes beyond pasting numbers from different insurance websites into a spreadsheet to see which price is the lowest. Working with your local We Insure representative offers great advantages: competitive pricing from a wide variety of top-rated carriers, fast and free comparative quotes and knowledgeable agents to guide you to the right coverage for your needs.
Contact We Insure today to discuss your car insurance needs and learn how you can save without compromising your coverage.