Are You Overpaying for Car Insurance?

Happy family ride in the car together.

The national average cost of full coverage car insurance is $2,543, a substantial 26% increase from just a year ago when the average was $2,014. Here are five tips that may help you save money on this required coverage, along with the factors that are driving up costs.  

Top 5 Ways to Save Money on Car Insurance

1. Raise your deductible – By selecting a higher deductible, you can significantly lower your premium costs. Just be sure you have enough money set aside if you need to file a claim.

2. Reduce optional insurance – If your car is older and worth less than 10 times the insurance premium cost, having collision coverage, which pays for accidental damage from a collision with another vehicle or object, may not be cost effective. In addition, comprehensive coverage, which pays for damage from incidents like vandalism, hail, flood, and falling objects, may also not be needed.

3. Bundle your insurance – Several insurance companies offer a discount if you insure more than one product with them.

4. Maintain good credit – In some states establishing a solid credit history may lower your insurance costs. Check your credit score and make sure all information is accurate.

5. Ask about discounts – Some insurance companies offer a reduced rate for things like low annual mileage or completion of a safety course. Ask your Westwood agent if you qualify.

Tip: Check insurance costs before you buy a car. Insurance premiums are partly based on the car’s price, the cost to repair it, the likelihood of theft, and its overall safety record. When you’re shopping around for a new or used car, be sure to research the cost for insurance as well.

Why have premiums gone up?

While location, age, driving record, credit history, and type of vehicle may contribute to your car insurance rate, there are factors outside of your control that also have an impact. Over the past few years, there have been increases in the following:

Extreme weather claims – Bad weather causes damage to vehicles and hazardous driving conditions resulting in more accidents.

Fatality rates – These were up 16% in 2023 compared to 2019.

Thefts – 2023 was a record-breaking year with more than one million vehicle thefts.

Premiums are expected to remain high or climb as the price of new and used cars stays dramatically more expensive, maintenance and repair costs continue to increase, and extreme weather is predicted to get worse.

No one wants to pay more than they need to for car insurance. Contact your Westwood agent today to get a competitive rate.

Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.