Car insurance costs have been increasing and are expected to rise further in 2024. Premiums are predicted to go up by 12.6% on average, reaching around $165 per month for full coverage nationwide. Some states, like Nevada, could see even steeper increases, with rates jumping by 28%.
These increases are driven by various factors, including inflation, higher costs of repairing and replacing vehicle parts, more severe weather events, and an increase in the number and severity of accidents. Despite these rising costs, there are ways to manage your premiums effectively. Here are six tips:
Bundle home and auto insurance: If you already have homeowners or renters insurance, consider getting your car insurance from the same provider. Bundling can save you an average of 14% on premiums, equal to about $466 a year.
Pay your annual premium in full: Many insurance companies charge a fee for monthly payments. Paying your premium upfront can save you up to 12%.
Consider pay-per-mile insurance: If you don’t drive often, a pay-per-mile policy could save you money. With this type of insurance, you’re charged a flat daily rate plus a per-mile surcharge.
Maintain good credit: In most states, your credit score affects your car insurance premiums. Improving your credit score can help you save on insurance costs.
Take advantage of discounts: Insurance companies offer various discounts, such as for safe drivers, students, and military members. Research available discounts and see if you qualify.
Consider a higher deductible: Increasing your deductible can lower your premium, but be sure you can afford the deductible in case of an accident.
