There are some unusual ways to save on your auto insurance out there. Here are a few really weird car insurance savings hacks that you have probably never heard of.
These hacks do not always work for everybody but they can save you a lot of money if you utilize them. Here are five really strange car insurance hacks you probably never thought of.
- Move across the state line. The biggest determinant of auto insurance prices in the United States today is the state you live in. The average resident of Michigan pays $2,446 a year for minimum or liability-only car insurance coverage. Full coverage in that state can cost you up to $3,535 a year. The average resident of Ohio, a more consumer friendly state pays just $579 a year for the minimum liability only coverage and $1,392 a year for full coverage – less than what the Michigan resident pays for the minimum. Rates differ between states because laws on car insurance are different in different states.
- Don’t drive an electric car. Back in October 2015, our friends at Nerdwallet calculated that owners of four electric vehicles; the Chevrolet Spark, Volkswagen Golf, Smart Fortwo and Fiat 500, paid 21% more for insurance. The survey is hardly scientific the most prominent electric vehicles; the Tesla S series, was not covered, but it seems to counter earlier studies that showed electric cars cost less to insure. The most likely reason why electrics owners pay higher premiums is the experimental nature of the technology. Experiment implies risk, insurers hate increased risk. The higher cost of electric vehicles such as the Tesla products also increases costs. Something to remember is that electric drivers pay a lot less for fuel, so their overall costs might be lower. Insurance costs for electrics might go down as more of them hit the road, and if prices fall.
- Let your insurance company track your movements. One reason why insurance costs are so high is that companies have no way of getting an accurate picture of your driving habits. Telematics is a wireless technology that lets insurers know how much you drive, and when you drive. Progressive’s Snapshot telematics device lets you pay for your insurance as you drive. Allstate has a similar program designed to reward responsible drivers. If you don’t think having your insurance company track your movements is creepy, you can save money.
- Drive less. It goes without saying but the less time you spend on the road the less likely you are to get into an accident. Simply reducing the amount of time you drive can lower your insurance rates particularly if you use a telematics device. Working from home, using Uber or Lyft, walking to work, bicycling to work, taking advantage of online retail and grocery delivery, car pooling and mass transit can help you lower your auto insurance rates.
- Avoid driving at night. Studies indicate that driving at night and driving tired can be just as dangerous as drunk driving. Simply staying at home at night or using Uber when you can go out might lower your insurance rates particularly if you live in the city.
There are lots of ways to lower your auto insurance rates if you simply get creative. A little thought can help you keep your premiums a lot lower.