Smart Ways to Save on Your Auto Insurance Rates Every Year

There are a few inescapable things in life, and if you drive a vehicle, auto insurance is definitely one of those things. It is a major part of owning a vehicle and something that has an impact on your budget. Insurance helps protect drivers against unforeseen disasters such as theft, vandalism, and accidents that can be really costly out of pocket. How much your insurance costs can be a hefty expense, too. But there are some smart ways you can save on your auto insurance every year.

AutoGuide.com thanks Toyota Insurance for sponsoring this insurance series

Rates May Vary

There is no set car insurance rate and it is different for everyone. Your auto insurance rate is dependent on a lot of factors not limited to geographical location, age of the driver, type of vehicle, driving history, insurance score, and even occupation in some cases.

When you do find an insurance plan that works with your budget, you need to look for opportunities to lower your rate with each passing year. When your policy renews is the best time to see if you need to shop around, because it is at that time when you may see rate increases. Get a ticket? Your rate might go up. Move to a bigger city? The same can happen. It is important to monitor your car insurance.

Also be sure you are getting a quote from a reputable insurance company. Sometimes you might find a rate that is really attractive and far less than you currently have. Be sure that company actually provides the services you require if a claim comes up. Make sure to carefully research companies that offer a rate that seems too good to be true.

Quote Me On This

How do you find different rates to see what is best for you and your budget? Start by getting quotes for your insurance from different insurance companies. There are two basic ways to go about doing that. You can call around and spend hours upon hours getting different quotes, or you can go through an independent agency, that handles multiple insurance brands, and let them get quotes for you and find you the best rate for the coverage you need.

“Consumers should shop to make sure they are getting the best prices for the coverage they need,” said Michael Uchiyama, Product Development Director for Toyota Insurance. “Toyota Insurance is an independent agency, meaning we are authorized to quote and sell for multiple insurance companies. This allows our customers to receive multiple quotes to find the best option.”

Coverage Options

All coverages you get with insurance are not the same. Most car loans require full coverage to assure the lien holder that if your car is totalled, they will recoup the loss of the loan. The most basic option is to have liability coverage, which means in an accident, if you caused it, the other vehicle is covered by your insurance. It all varies by state, as there can be different rules in different states, like mandatory no-fault insurance. There are multiple add-on options, like windshield replacement, road hazard, towing, and gap coverage. All of these impact your rates.

“Making sure the right optional add-ons are selected is often overlooked to save money,” Uchiyama said. “Optional coverages like Rental car coverage, Roadside Assistance, and an OEM endorsement are often overlooked. When available an OEM endorsement will allow repairs to utilize genuine OEM factory parts. Toyota Auto Insurance from Toyota Insurance has the OEM endorsement option.”

Overlooking the options can be one of the biggest mistakes people make when trying to save on auto insurance.

First Time Insurer

There is a misconception that someone buying auto insurance for the first time is going to pay more. There are quite a few options and special deals for first time insurers that can help lower the rate. Some companies offer recent college graduate discounts. Other discounts can be found for buying a car with a better safety record, or having an established good credit record.

When asked for advice for first time insurers looking to save on auto insurance, Uchiyama had some simple advice. “Ask questions about the insurance policy and policy options so you know what you are covered for.”

Savings Are Out There

The single biggest mistake you can make when trying to save on your auto insurance is to blindly accept that the premium you get at renewal is the best option. It might be the case, but you need to shop around and get quotes every year.

Also dig deep for discounts. You might find that adding a security device drops your rate enough to make the cost to install one be well worth it. Some insurance companies offer discounts for new tires, or snow tires during winter months in areas that normally see snowy winters. You may also find a discount for taking an established driving school to make you a better, more defensive driver to avoid accidents.

We spoke with a retired police officer with more than 25 years of experience in dealing with speeding tickets and he gave great advice for any driver looking to avoid getting a ticket, which can have a severe impact on your insurance rate. “Don’t speed,” he said. Pretty straightforward advice, but it is true. If you worry about saving on your auto insurance, don’t do anything to get a ticket.

When it comes time to renew your policy, use your head and look for every possibility when it comes to saving on your auto insurance every year. Know what kind of coverage you need and shop for quotes from different companies. Keep your options open and be smart.