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Think your SUV insurance bill is draining your bank account? You might not be alone. Car insurance now averages $1,638 per year across the United States.
If you’re not comfortable with that — and your budget isn’t either — it helps to know that you do have some options. Rather than just paying the bill each month with a little grumble, take some steps to reconfigure your payments. There are many ways to lower your SUV insurance bill and take advantage of the discounts available.
Shop Around for a Lower Rate
We tend to get complacent in our monthly habits. Life takes over, and we might accept the bills we pay without shopping around. That can be a disadvantage, especially since insurance companies offer similar coverage at different rates. They evaluate and weigh demographic factors such as age, location, driving history, and credit history differently.
To get a lower insurance rate for your SUV, get quotes from several different companies once a year. You can use online comparison-shop tools to see various price quotes. You can also check directly with insurance companies; they can often bypass the commissions charged by these online services.
Shop For Insurance Before Buying Your Next SUV
Shopping for a new car can be a lot of fun. You spend time narrowing down your choices until you find the car of your dreams. Yet that dream can take a turn for the worse if you’re shocked by the insurance rates.
Instead of being surprised, make insurance evaluation a part of your research process. The year, make, and model of a vehicle can significantly impact insurance rates. Narrow your search down to a few vehicles. Talk with an agent to price out insurance for each SUV. Then, make the best choice to suit your needs.
Drop Car Insurance You Don’t Need
You’ll likely need collision and comprehensive insurance for full coverage when you purchase a new vehicle, particularly if you have a loan. Collision insurance pays for damage to your car if you run into another vehicle or object. Comprehensive insurance covers damages that don’t result from collisions.
The older your SUV is, the lower its value will likely be. Collision and comprehensive insurance don’t pay more than the car is worth. When your SUV reaches the point where your annual coverage amount and deductible are more than the value of the vehicle, you may want to renegotiate rates. You can also create a reserve account in the event your car is damaged and you want to take charge of repair or replacement yourself.
Increase the Deductible
Want a lower monthly payment? Adjust the deductible. Companies offer different deductible amounts to release some of their financial obligations. They give you discounted premium rates depending on how much of the repair cost you’re willing to cover yourself on a claim. Consider raising the deductible from $250 to $500, or from $500 to $1,000. If you’re claim-free, you can reap the rewards in savings each month.
Just be sure to keep money aside in the event you need to file a claim. For example, if you have a $1,000 deductible and file a claim for a repair bill of $3,000, the insurer will pay the $2,000 difference once you’ve paid the $1,000 deductible. It helps to have the $1,000 on hand to complete the transaction.
Improve Your Credit
Your credit score is another determining factor in how much you’ll pay monthly for your SUV insurance. Your insurance company will likely do periodic checks to factor your score into your yearly quotes. By keeping your score in top shape or working to improve it, you may be able to obtain lower insurance rates.
Improving your credit can take some work and time. Be sure to pay your bills in a timely manner, and keep your credit card balances well below their limits when possible. Think carefully about opening up new accounts as well, as account age can impact your score.
Watch for Discounts
You might be surprised with how many ways you can save on SUV insurance. Insurance companies often offer discounts to policyholders who are members of specific organizations or professions. Military, veterans, and teachers are among those who can often qualify for lower rates.
Some carriers offer student discounts or lower rates to people who complete driver training programs. This can be especially helpful for parents trying to obtain better family policies and lower monthly costs.
Do you work from home and rarely use your SUV? Are you a senior? Does your SUV feature anti-theft devices? All can be reasons to lower your annual rate. However, don’t get too excited about a particular discount. Compare the bottom line, as many carriers that offer discounts often have higher rates. Comparison is critical for ensuring you receive a great deal.
The Bottom Line on Lowering Your SUV Insurance
There are many ways to go about keeping your SUV insurance bill as low as possible. Start by comparison shopping. You have choices; don’t be afraid to move around. It’s equally important to remember that your current insurance might strive to keep you as a customer. Give them a call and see what they can do to provide additional savings.
Remember that insurance doesn’t have to be a one-and-done program. You can repeat this comparison process annually to ensure you have the lowest rates possible while retaining the coverage you need.