HOUSTON – Over the past year, auto insurance rates are up a whopping 15%. KPRC 2 Investigator Bill Spencer has five solutions that could help you slash your car insurance bill.
Bill managed to cut one woman’s bill by two-thirds, saving her thousands of dollars.
All across the United States, drivers are racing towards record-high auto insurance rates. The average American driver is now paying $2,014.00 a year for car insurance. Auto insurance rates have zoomed out of control over the past three years.
“Our insurance costs are up tremendously. They are up about 27% from pre-pandemic times. Record high car prices and record high repair costs are leading to higher insurance bills,” said Ted Rossman with Bankrate.com.
Lisa Pham, a credit analyst and single mother of three from Richmond, said she couldn’t believe it when she was hit with a $12,000-a-year auto insurance bill just to cover her GMC Yukon and her 17-year-old daughter’s car.
“When you get that bill, it’s just a complete sticker shock. It was devastating,” said Lisa Pham. “I mean, so many things were running through my mind. I was afraid my daughter couldn’t drive, and she’s a senior. It was just, it was tough. It was really hard to think about telling her that I can’t afford for you to drive.”
Now, with help from insurance broker Jessica Fuentes with Brazos Insurance, here are five ways to bring your auto insurance bill down.
1. Utilize a broker
Contact an independent insurance broker who can check the rates with multiple insurance companies and do the work for you.
“Always shop your insurance and look for a broker that can shop multiple carriers for you. Look for someone who can track 10 to 12 carriers all at once so that you don’t have to call around and make that many phone calls, and that can help you save money,” said Fuentes.
2. Make changes to your coverage
Increase your deductible. Deductibles can be as low as $100 and go as high as $10,000.
“The higher you keep taking that deductible, the lower your premium drops. So, ask your agent for multiple options. Say, ‘show me $1,000, show me $1,200, show me $2,000.’”
3. Ask for discounts
Ask your carrier for a safe driver discount, which could save you 5 to 10%.
“For example, if you’ve not had any claims in the last three years, certain carriers will give you a safe driver discount for having a clean record for three years.”
4. Consider discounts for all drivers on policy
If you have a teen driver on your policy, ask for a good student discount.
“If your child has a B or better average in school or a 3.0 or higher GPA, that can amount to up to 10%, depending on if you’re also doing driver’s ed.”
5. Ask to have a “telematics” discount
A telematics device records how you drive every minute you’re on the road.
“A telematics device is always going to be an easy way to get an upfront discount because most carriers will give you right up front a 10% discount just for participating. As the months go by and they get results of your driving, you can earn up to 30%”
Lisa Pham took Fuentes advice, did all those things, and was able to cut her car insurance bill from $6,131 every six months to $2,378.
“I thought it was amazing. I mean, I thought I could maybe save a thousand or two, but four thousand... Like, that’s a ton. I mean, that’s a lot.”
Fuentes also joined Amy Davis for an episode of Ask Amy to share advice for saving money on your homeowner’s insurance.
