Clark Howard's Guide to Auto Insurance: 7 Secrets to Save Hundreds This Year

Introduction

Millions of Americans overpay for auto insurance. But it doesn't have to be that way. With a little know-how, you can easily save hundreds of dollars on your car insurance premiums.

Consumer advocate Clark Howard has been helping people save money on auto insurance for years. In this guide, he shares his top 7 secrets for getting the best possible rate on your car insurance.

1. Shop Around

The first step to saving money on auto insurance is to shop around and compare quotes from multiple insurance companies. You can do this online or by phone.

According to the National Association of Insurance Commissioners (NAIC), drivers who shop around can save an average of $450 per year on their auto insurance premiums.

2. Increase Your Deductible

Your deductible is the amount you have to pay out of pocket before your insurance policy kicks in. Increasing your deductible is a quick and easy way to lower your insurance premiums.

For example, if you increase your deductible from $500 to $1,000, you could save up to 10% on your insurance premiums.

3. Take Advantage of Discounts

Many insurance companies offer discounts for things like being a good driver, having a good credit score, or installing safety features in your car.

Taking advantage of these discounts can save you a significant amount of money on your insurance premiums.

4. Use Bundling to Your Advantage

If you have multiple insurance policies, such as auto insurance and homeowners insurance, you may be able to get a discount by bundling them together.

Bundling your policies can save you up to 10% on your insurance premiums.

5. Ask for Senior Citizen Discounts

If you are over 55, you may be eligible for a senior citizen discount on your auto insurance.

These discounts can range from 5% to 10%.

6. Use Telematics

Telematics is a device that plugs into your car and records your driving habits. This data can be used by insurance companies to determine how risky you are to insure.

Drivers who use telematics can save up to 25% on their insurance premiums.

7. Work with an Independent Insurance Agent

Working with an independent insurance agent can save you time and money on your auto insurance.

Independent agents represent multiple insurance companies, so they can shop around for the best possible rate for you.

Conclusion

By following these 7 tips, you can easily save hundreds of dollars on your auto insurance premiums. So what are you waiting for? Start saving today!

Additional Tips

In addition to the 7 secrets above, here are a few additional tips for saving money on auto insurance:

• Maintain a good credit score. Insurance companies use your credit score to determine how risky you are to insure. Drivers with good credit scores typically pay lower insurance premiums.
• Avoid filing unnecessary claims. Every claim you file will increase your insurance premiums. Only file a claim if you have to.
• Take a defensive driving course. Defensive driving courses can help you learn how to be a safer driver. This can lead to lower insurance premiums.
• Install safety features in your car. Safety features, such as anti-lock brakes and airbags, can help you avoid accidents. This can lead to lower insurance premiums.
• Compare quotes from multiple insurance companies every year. Your insurance premiums can change over time. Comparing quotes from multiple insurance companies every year will ensure that you are always getting the best possible rate.

Common Mistakes to Avoid

Here are a few common mistakes to avoid when shopping for auto insurance:

• Not shopping around. The biggest mistake you can make is not shopping around and comparing quotes from multiple insurance companies. You could be overpaying for your insurance premiums if you don't.
• Buying more coverage than you need. Only buy the coverage you need. Buying more coverage than you need will only increase your insurance premiums.
• Filing unnecessary claims. Every claim you file will increase your insurance premiums. Only file a claim if you have to.
• Lying to your insurance company. Lying to your insurance company can void your policy. This means you will not be covered in the event of an accident.

Need Help Finding the Best Auto Insurance Rate?

If you need help finding the best auto insurance rate, Clark Howard recommends contacting an independent insurance agent. Independent agents represent multiple insurance companies, so they can shop around for the best possible rate for you.

To find an independent insurance agent in your area, visit the National Association of Insurance Commissioners website.