Trimming the Fat: 9 Ways to Cut Auto Insurance Costs While Maintaining Adequate Coverage

4:49 PM, Oct 02, 2019
9 Ways to Cut Auto Insurance Costs While Maintaining Adequate Coverage

Who wouldn’t love to cut some expenses? There are savings to be realized in auto insurance. “Just be willing to do a little research to figure out ways to trim the fat,” says Pam Hansen Alfred, a State Farm agent in Great Falls.

Here are 9 ways she recommends cutting your auto insurance premium.

1. Look for duplicate coverages.

“There might be some coverage on your existing auto policy that’s duplicated,” Hansen Alfred says. “For example, in Montana, we have Medical Payments coverage. But if you have adequate health insurance, then Medical Payments coverage may not be needed.”

2. Choose the right vehicle.

Before you buy a car, consider how it will affect your insurance rate. Those fancier, more expensive, gas-guzzling cars typically have higher insurance costs.

3. Keeps the miles driven low.

“Double check with your insurance company to make sure they have the correct mileage annually for that vehicle,” Hansen Alfred suggests. “Driving less than a certain number of miles can mean a huge discount.”

4. Keep higher-risks drivers away from the vehicle.

“Check that your insurance company is right about who they have rated on which vehicles, especially when you add kids to cars. They might not be rated on the right vehicle,” Hansen Alfred says. “So you might pay extra premiums because you don’t have the right driver on the right vehicle.”

5. Raise your credit score.

Higher credit scores result in lower insurance premiums. Check your score regularly and actively work to clear up blemishes.

6. Increase your deductible.

“If you want to reduce your premium, you can raise your comprehensive and collision deductible,” Hansen-Alfred suggests. “That way, you take on more of the risk while reducing your overall premium.”

“Going that route means ensuring you have enough money on hand to cover the higher deductible in case you get in an accident and have to file a claim,” she explains, adding, “raising your coverage to a $1,000 deductible is equivalent to having a savings account with $1,000 in it.”

7. Nix the comprehensive and collision altogether.

A paid-off vehicle is not required to carry full coverage so you could save by eliminating comprehensive and collision coverage altogether. Doing so puts the burden squarely on you, though, if an otherwise covered loss occurs. Other inclusions you could consider dropping to lower your premium are towing and roadside assistance.

8. Pay your premium in full, rather than monthly.

Insurers typically offer a discount if you pay in full. Explore this if you haven’t already.

9. Make sure you’re getting all the discounts for which you’re eligible.

For example, look for multi-policy discounts that result from insuring your auto, homeowners and other coverage with the same company. Discounts might be available for good driving habits and taking defensive driving courses, too.

Pam Hansen-Alfred’s office at 2817 10th Avenue South in Great Falls provides auto, home, business, property, life and health insurance. The Great Falls native has been a State Farm agent since 1986 and has a team ready to discuss your coverage needs and discounts at 406-453-6010 or 800-823-3620.

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2817 10th Ave S
Great Falls, MT

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