Thanks to high inflation rates in 2022, the price of almost all goods and services has risen significantly. Unfortunately, incomes are not keeping up with the cost of living. As a consumer, you need to make several changes in your finances to stay afloat.

Among the most affected industries in the United States right now is insurance. Over time, several car insurers have received approval to raise the cost of premiums by close to 20%. Auto insurance is not the only type of insurance wreaking havoc on consumers’ bank accounts. You still need health, life, homeowners’ insurance, and other insurance covers for your assets. You can take steps to ensure you are getting the best possible deals. Below are some simple tricks to help you make some savings on your next round of premium payments:

Trick #1: Choose lower coverage for an older vehicle

If your car is older, save cash by cutting collision or comprehensive coverage. You shouldn’t have to pay such hefty amounts for insurance if your vehicle is on its final lap. Some insurers do not offer comprehensive coverage to vehicles over ten years old.

Find its value in the Kelley Blue Book to determine whether you can save by cutting your car’s comprehensive cover. You can lower your insurance coverage if your vehicle is worth less than ten times your annual premium. You can also drop comprehensive coverage if you have enough money in the bank to cater to its loss.

As you cut back on insurance coverage, never cut back on liability insurance. Both repair and medical bills can go into hundreds of thousands of dollars. Without adequate coverage, you will be legally bound to cover those costs. Liability insurance is cost-effective and is a bare minimum in many states.

Trick #2: Review your current insurance needs to see what you can cut out

Your insurance needs change over time. Assume you have a term life insurance policy with the same coverage time as your mortgage. If your mortgage is nearly paid and you have retirement savings, you can lower your policy amount. This lower policy amount will mean lower monthly premiums.

Trick #3: Look what other insurance companies have to offer before deciding

Seeking firms that may be offering insurance at lower premiums is a good idea this year. Shopping around might reveal discounts or cheaper solutions for all kinds of insurance.

If you feel your current auto insurer is too costly, you can look elsewhere. Look for companies offering deals for active members of the military and veterans. Some insurance companies also give discounts across all types of insurance covers for:

• Good grades (teens)
• Teachers and nurses
• Senior citizens
• Affiliations with University and college alumni groups or AAA
• Having an indoor garage

Trick #4: Buy a less expensive or older car

If you are shopping for a new car, get a cheaper brand. Teslas and Mercedes attract higher premiums, like their huge prices. Insurers charge heftier premiums for such vehicles because their repairs and spare parts are costly.

For instance, the cost of insuring a Mercedes is $2,300 higher than insuring a Toyota. If your priority is saving on car insurance, buy a lower-cost car brand.

A newer car will also cost more to insure as they are costlier to repair or replace. You can find a 4-10-year old vehicle that will offer excellent services without breaking your bank. Smaller cars are also cheaper to insure compared to massive gas guzzlers that you may not need.

Trick #5: Ask your insurance company about safe driving discounts.

If you are a careful driver, you stand a good chance of significant gains regarding safe driving discounts. Most insurers offer discounts and programs for clients like you. Some carriers offer discounts for drivers that go three years without at-fault accidents.

Also, ask your insurer whether they have telematics insurance programs. These use a mobile app or car plug-in device to track your safe driving habits like braking and speeding. Based on the data these tools provide, you might find yourself reaping up to 30% off next year.

Trick #6: Increase your insurance deductible

Your deductible is the amount you pay if a risk occurs before your insurer has to chip in. Assume you have an incident whose repairs will cost $2000, and your deductible is $500. Your insurer will cover $1,500 while you pay $500.

Many clients choose lower deductibles. They rightfully worry about the burden they will shoulder in case of an accident. They easily forget the impact lower deductibles tend to have on monthly premiums. Lower deductibles force the company to raise its premiums to offset the high amount they have to pay in case of an accident. On the other hand, raising your deductible to $1,000 can lower your premiums by up to 40%. Choose to ‘self-insure’ by saving up a $1000 emergency fund to afford the higher deductible.

Trick #7: Bundle up your insurance policies

Many insurers encourage clients to take out homeowners, renters, and auto insurance at once for a discount. Do you have multiple cars? Are you looking to insure your home or boat as well? Many insurers will gladly offer you a discount if you take out one cover for all your property. According to insurancequotes.com, the national average savings for bundling your covers stand at 16%.

Bundling your insurance makes things convenient, and cheaper and reduces confusion. On the insurer’s side, bundling up your policies also reduces paperwork and sales and admin work costs.

To qualify to insure multiple cars in one cover, the car owners must be blood relatives or spouses. They should also live within the same compound.

The final word on saving on insurance costs

Disability, health, auto, homeowners, and life insurance can weigh heavily on your budget. You may be unable to control inflation, age, and other factors affecting insurance costs. Still, the tips above show that you aren’t powerless against rising insurance costs; you can still save money. Even better, it is possible to save without compromising on coverage quality.

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