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as your household budgetThe cost of your auto insurance is probably higher this year than it will be in 2022.
how much more
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It depends on a variety of factors, including where you live. Nationally, the average for full coverage – generally defined as liability, collision and comprehensive – is $2,014 in 2023, up about 2.6% from 2022. A new study from Bankrate,
But in some states this jump is above 15%. This includes 16.7% in Illinois — ranging from $258 to $1,806 — as well as 15.4% in Alaska (ranging from $260 to $1,946) and 15.2% in Florida, ranging from $421 to $3,183.
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The Sunshine State is also one of two places where the average premium has passed the $3,000 mark – the other being New York, at $3,139.
There are two states where the average has dropped this year: New Jersey, down 7.2% to $1,754, and Massachusetts, where it fell 2.6% to $1,262.
Of course, the exact amount you’ll pay is also based on things like your age and driving record, along with the make and model of your car, and your specific coverage options.
While auto insurance eats up a small portion of a person’s income — about 3% for the average person, according to a Bankrate study — you may be able to reduce it even more.
Here are some expert tips for reducing costs.
try to improve your credit score
If your state allows it — and most do — insurers can use your credit information to price policies, said Mark Friedlander, a spokesman for the Insurance Information Institute. Industry research shows that drivers who manage their credit well have fewer claims, he said.
Average annual premium for someone with very good or excellent credit — Generally, above 740, on a scale of 300 to 850 — is $1,764, according to the Bankrate study. In contrast, a poor credit score – below 580 – carries an average annual premium of $3,479. This is an additional $1,715.
Ask about all discounts
Some insurers offer discounts for a variety of things, from having an antitheft device in your car to having more than one car on the policy or “bundling” — getting both auto and homeowner’s (or renter’s) insurance from the same provider. is included.
According to Insurify bundling can save you 8% annually. Or, if you’re a member of the military, you can save 2.2%. And if you take a driver safety training course as an older American, you can save up to 15.2%.
Additionally, low mileage may qualify for a discount. Some insurers offer discounts for driving a below-average number of miles per year.
“If you are working from home now, I would definitely let your insurance company know that you are not going to work,” said Brian Moody, executive editor of Kelley Blue Book.
Consider raising your deductible
The deductible is the amount you pay out of pocket at the time of making a claim. Higher the deductible, lower will be the premium.
Friedlander said that if you raise your deductible from $250 to $500, it could reduce your coverage costs by 15% to 30%.
However, he added, “make sure you have enough money set aside to pay the cost difference in case you file a claim.”
shop around
Compare your costs with other insurance options, preferably once a year.
While cost is not the only consideration – you also want a company with well-sold finances and good service – it is worth checking whether another insurer has a less expensive policy available.
“Auto insurance is extremely competitive and companies want your business to increase their share of the market,” Friedlander said. “Prices can vary greatly from company to company, so it pays to shop around.”
Explore Usage-Based Insurance
Many insurance companies offer usage-based insurance policy,
“These programs can generate premium discounts,” Friedlander said. “Allowing the insurer to monitor how you drive and your driving habits — speed, acceleration patterns, braking patterns — through a mobile app or plug into your vehicle.” Through -in device.
Consider less coverage on older cars
While states require you to have a minimum amount of car insurance that varies from place to place, if your car is paid off and probably isn’t worth much, you may want to consider getting your comprehensive or collision coverage. May be able to leave.
Collision covers what you’d expect – a crash with another car or an object such as a telephone pole – and comprehensive cover covers non-collision incidents such as theft or a tree falling on your car.
“If your car is worth less than 10 times the premium, it may not be cost-effective to purchase these optional coverages,” Friedlander said.