All major car insurance companies offer a multi-car discount for drivers who insure more than one vehicle with the same policy. Most insurers allow up to four cars and drivers on a single car insurance policy, and they offer multi-car discounts of up to 20%. If you have more cars or drivers than will fit on a single multi-car policy, you can get a second policy that’s heavily discounted and linked to the first.
But a multi-car discount does not compound as you add more vehicles to your policy. For example, if an insurance company offers a 10% multi-car discount, you won’t get a 10% discount on your second car and a 20% discount on your third. If you have three cars on your policy, each gets 10% off its portion of the total premium. Multi-car discounts do vary by insurance company, though.
You can also lower your insurance premiums with other discounts, such as those for paying in full or bundling multiple policy types (e.g. home and auto) with the same company. But the only way to know you’re getting the best price is to compare quotes from several insurance companies. Even if one company advertises bigger discounts, their base prices may leave you with a higher effective premium than a company with a smaller featured discount.
You may have anywhere from 2 to 30 days to tell your insurance company that you bought a new car if you are already insured, depending on financing and coverage details. If you don’t have car insurance already, you’ll need to get a new policy before you can legally drive your new car. Most car dealerships require proof of insurance to drive off the lot, so you’ll have to do some planning.… read full answer
Either way, it’s wise to get car insurance quotes for different vehicles before buying one. That way, you’ll have a sense of which make and model is likely to increase or decrease your premium the most. At the very least, it’s something to take into account when picking your new car.
If you have an existing car insurance policy, there are two common grace periods for getting insurance on a new car:
2 to 4 days is common if you are adding a new car to an existing policy. Most car insurance companies will extend coverage to the new car in good faith, since it is usually required to get a loan. Such policies are designed to allow you to drive your new car home and make a call to your insurer quickly thereafter.
7 to 30 days is common if you are replacing a covered vehicle with a new car you purchased outright. In these cases, you can probably expect to have the same level of coverage as before. If you had liability-only coverage on the car you’re replacing, your new car would also have liability-only coverage.
Your policy term will transfer to the new vehicle in most cases, so you won’t have to start over with a new six-month or one-year policy.
If you are financing or leasing a new car, you may also want to consider adding gap insurance to your policy. Gap insurance will help pay the difference between the car’s market value and what you owe on your loan. Although collision coverage will pay fair market value for a totaled car, that may end up being less than you owe if you total your new car right away.
No matter how much time your insurance company gives you to get insurance on a new car, it’s best to reach out as soon as possible. Coverage specifics vary widely depending on state laws, insurance company rules, and individual policy provisions. If you miss a deadline, you could end up driving uninsured, which could result in legal fees, higher car insurance premiums, loss of your driver’s license, and more.
The best ways to lower car insurance costs are to compare prices among insurers, take advantage of all the discounts you can, and adjust your coverage to fit your budget. While some factors that affect prices can’t be easily changed—like, age, gender, location, and career—others can be. For example, you might be able to save 33% to 50% on your premiums just by switching to a cheaper carrier, according to WalletHub’s research.… read full answer
With the average cost of car insurance at more than $3,900 per year, it’s important to look for savings opportunities wherever they can be found. Here are some easy ways to lower costs plus some that take a little more work.
8 Tips for How to Lower Car Insurance Costs:
1. Shop around
Insurance companies charge different rates for the same coverage. They also treat the factors that go into your rate (driving history, age, credit history, etc.) differently. Finding the company that is best for the kind of driver you are can save you a lot.
When you shop for insurance, you should always get 3 or more quotes to compare. And be aware that prices change within the industry. You can maximize your savings by comparison shopping every 6 to 12 months, when your policy is about to renew.
2. Search for discounts
Every major insurer gives discounts. Look through all the ones your company offers to make sure you are getting what you qualify for. For instance, you might be able to save money if you:
Bundle policies—save up to 25% for having your auto, home, health and/or life insurance policies with the same company.
Auto-pay or pay upfront—having your premiums automatically deducted from your checking account or paying your entire premium in one payment can save you 5% on your total premium.
Go paperless—view and pay your bill online for 3% off.
Take a defensive driving course—and save up to 10%. Some companies restrict this discount to certain groups, such as seniors.
Maintain a “B” average—if you’re still in school, keeping your grades up can earn you 15% to 25% off your premiums.
Inventory your car’s equipment—anti-theft systems or safety equipment (anti-lock brakes, airbags, daytime running lights, etc.) can reduce collision or comprehensive costs by 5% to 25%.
Think about all your groups—working for certain employers or belonging to certain clubs, alumni associations, professional organizations, social groups or charitable groups can offer savings of up to 25%.
Stay safe—avoiding at-fault accidents and moving violations for at least five years will reduce your bill by up to 20%.
3. Increase your deductibles
Increasing your deductibles will definitely reduce your premiums. Going from $200 to $500 could reduce the cost of your collision and comprehensive coverage by up to 30%. Going from $200 up to a $1,000 deductible could save you 40%. But be careful. If you get into an accident, you don’t want to face paying more out-of-pocket than you can afford.
4. Reduce your coverage
There are two ways to do this. You can lower the limits on your coverage. Or you can eliminate unnecessary types of coverage. Maybe you don’t really need rental car coverage, for example. Comprehensive coverage on an old, low-value car may not be worth the cost, either.
5. Reduce your mileage
How far you drive each year affects your insurance costs. Think about carpooling to work, riding your bike locally, or taking the bus. Driving less than 10,000 miles a year could save you 11% on average.
As an alternative, the electronically monitored, mileage-based insurance offered by some carriers allows you to pay only for the number of miles you drive in a month. You can earn deep discounts. State Farm says that drivers who log relatively few miles in its program save as much as 50% on their insurance.
6. Buy an insurance-friendly car
Luxury cars, sports cars and cars with high theft rates can cost up to 3 times as much to insure as cheaper, less risky vehicles. Before you buy, get a quote on insuring your new car and think about whether that’s in your budget.
7. Improve your credit
In most states, insurance companies take your credit history into account in setting your rates. Improving it can reduce your premiums. People with no credit pay 67% more for car insurance than people with excellent credit, on average, according to a recent WalletHub study.
8. Move to another city or state
You probably won’t plan a move just to save on insurance, but the area you live in significantly affects your rates. Less densely populated neighborhoods with fewer cars and less crime put you at lower risk for accidents, theft, and collisions with injuries. Local weather and road maintenance also factor into your rates.
If you are serious about lowering the costs of car insurance, your first step should be compare the price of your current insurance to quotes from several other companies. It’s also important to visit the website or call the customer service department of your current insurer and make sure you know all the ways you can save with them. Lastly, remember to repeat these steps regularly, at least once a year. Otherwise, you could be throwing money away without knowing it.
Yes, Amica Insurance offers multi-line discounts. Amica provides a discount when you insure both your auto and home. An additional discount may be available to you if you have a qualifying Amica Life insurance policy. For more information please call customer service at 800-242-6422.
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