It’s true; we all need it.
You can’t go without it – and if you don’t have it when you need it, you’re off to jail!
I’m talking about auto insurance!
Surely the most hated of all ‘unnecessary’ expenses, the price seems to go higher and higher each year.
The average annual cost of auto insurance is a whopping $1,555 per year. What’s happening here?
An article by J.D. Power explains it very well: insurance companies are betting on the odds of you not having an accident.
Decades in the business have allowed them to accumulate vast statistics and data points on various accidents. Therefore, they can estimate the risks involved in a specific situation and adjust their pricing accordingly.
So when you combine several insurance packages, the company needs to calculate these odds and apply them to each scenario. It’s a gamble for you and the insurance company.
One of the other reasons prices are so high is that modern cars have become very expensive to repair. Twenty years ago, a fender-bender at the stop sign would result in minor damages, the nature of which was often so insignificant that neither party would even bother reporting them.
But as technology has made our cars more like mobile computers, a wide range of sensors, cameras, and other equipment are now built into the bumpers. The same incident occurring today could result in thousands of dollars in damages!
Constant improvements in both active and passive safety systems have reduced accidents, but it comes at a cost – quite literally. Older vehicles are more accident-prone and often present a greater risk of injury, which is why their premium prices aren’t much better.
So what’s to be done? Is it possible to save money on auto insurance?
The short answer is yes!
Try taking advantage of multi-car discounts. If you are a good driver, consider increasing your deductible to bring your premiums down.
Downsizing your top-of-the-line vehicle to a more affordable and smaller vehicle can help.
But – the biggest tip?
Shop around! You see a constant barrage of auto insurance commercials on the daily – they’re thirsty as all get out. So take advantage and look for the best price.
Thankfully, we aren’t in the auto insurance biz, but setting up a 15-minute consultation with us by calling 513-563-PLAN (7526) (or clicking here) could save you a bunch of money on… well, everything!