Car insurance is a necessary expense. But that doesn’t mean you have to pay more than you need to. A clever strategy can help you lower your premiums. In this guide, our team at American Auto Insurance will share practical ways you can reduce your Illinois car insurance costs while making sure that you’re still covered for everything you need.
Understanding Car Insurance Coverage Options
Choosing the right car insurance coverage is key to getting the right balance between coverage and affordability. Knowing the types of coverage you have available to you can help you make an informed decision:
- Liability coverage: Covers medical expenses, property damage, and legal fees in an accident where you’re at fault. It’s required in most states to protect other people or cars involved in an accident.
- Uninsured or underinsured motorist coverage: Covers you if you’re hit by a driver who doesn’t have insurance or enough coverage. It’s required in some states, so you don’t have to pay out of pocket.
Optional coverage includes:
- Collision coverage: Pays out to repair or replace your vehicle after an accident (regardless of who’s at fault). This is often required if you finance or lease your car.
- Comprehensive coverage: Covers theft, vandalism, natural disasters, and hitting animals.
- Medical payments and personal injury protection: Pays medical expenses or lost wages for you and your passengers after an accident. It’s useful if you have limited health insurance.
- Gap insurance: Pays the difference between your car’s value and the amount you owe on a loan or lease if you write off your car. It’s recommended for newer vehicles with high depreciation.
- Roadside assistance: Offers towing, jump starts, and tire repairs in an emergency. It’s an affordable add-on for extra peace of mind.
Specialized add-ons include:
- New car replacement coverage: Pays out to replace your car after a bad accident with a brand-new one if it’s under 2 years old or a certain mileage.
- Rental car reimbursement: Covers the cost of renting a car while yours is being repaired after an accident.
Key Actions To Reduce Your Car Insurance Premiums
One of the best ways to make insurance cheaper is to take immediate steps that impact your rate. Here’s how to save money on auto insurance:
- Shop around: Compare quotes to find the best policy and rates for your needs.
- Choose the right vehicle: Some cars are more expensive to insure. Choose vehicles with good safety ratings and smaller engines or lower repair costs.
- Maintain a good driving record: Avoid accidents and traffic fines as much as possible to get lower rates.
- Bundle your policies: Many providers offer discounts of up to 25% when you take out auto insurance and homeowners or renters insurance.
Maximize Available Discounts
Insurance companies often offer discounts, including for safe drivers with clean records. A decent driving record can take up to 50% off your insurance premiums, and you could save if you or a family member on the policy is a student with good grades. Insuring multiple vehicles with the same provider or driving less than the average driver may also qualify you for a reduced rate. Vehicles with anti-theft devices, airbags, and other safety features often receive discounts.
Increase Your Deductible
If you increase your out-of-pocket amount for claims you can also lower your monthly premium. Be sure to choose a deductible amount you can afford in case of an accident. A higher deductible means more out-of-pocket expenses in the event of a claim, but it can provide significant savings over time if you don’t.
Strategic Policy Adjustments for Bigger Savings
Making smart changes to your policy can help lower costs:
- Drop unnecessary coverage: Drop collision and comprehensive coverage if you drive an older car or one with a low market value.
- Pay annually instead of monthly: Pay up front and save up to 20% on interest fees.
- Go paperless: Some providers will give you a discount if you choose paperless statements or make automatic payments.
- Choose pay-per-mile insurance: A pay-per-mile policy could reduce your costs significantly if you don’t drive very often.
Long-Term Tactics for Consistent, Affordable Premiums
Here are some tips on saving money on insurance:
- Improve your credit score: Many insurers look at your credit score to determine a rate. A better credit score can lower your premiums by 17% on average.
- Stay with a reliable insurer: Loyalty discounts can add up, but always compare rates periodically to ensure you’re getting the best deal.
- Take a defensive driving course: Completing a driving course may get an extra discount.
- Review your policy annually: Moving or getting married can affect your rates. Check your policy each year to ensure you’re not paying too much.
- Review your driving with telematics: Some insurance programs track your driving and reward you for careful driving.
Additional Resources and Expert Advice
Staying up to date on car insurance trends can help you save. Contact American Auto Insurance to compare policies from various providers, regularly review your policy to ensure it aligns with your needs, and remove unnecessary add-ons. Government agencies and consumer advocacy groups provide valuable insights into reducing insurance costs.
Visit American Auto Insurance
Be proactive to save on your car insurance. Compare quotes and take advantage of discounts, or adjust your coverage as needed. Applying these affordable car insurance tips can reduce your premiums while maintaining quality coverage. Start saving today by getting a free quote from American Auto Insurance, your trusted provider serving the entire state of Illinois. We offer expert advice and assistance; contact us at 773-286-3500 to find out more about this and also our 24 hour roadside assistance.
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