Auto insurance premiums have gone up by\u00a0more than 17%\u00a0in the past year, dramatically outpacing inflation. But that doesn\u2019t mean drivers are stuck paying their current high premiums. By settling for rising prices, policyholders may be snoozing on a better deal.<\/p>\n
That was the case for Jamie Means, a 27-year-old Nashville, Tennessee, resident who, until earlier this year, drove a 2017 Hyundai Elantra. For years, that car was insured with Progressive Soon after that, Means found a full-coverage policy with Allstate By switching insurers, increasing her deductibles and signing up for a program that tracks her driving and rewards her for safe habits, Means managed to cut her insurance cost by 37%.<\/p>\n But how exactly did each of these changes affect Means\u2019 coverage, and why did they help her lower her monthly insurance bill?<\/p>\n See:<\/strong> This is now how much it costs the average car owner every month to own and operate a vehicle<\/p>\n NerdWallet recommends\u00a0comparing auto insurance quotes\u00a0at least once a year to ensure you\u2019re getting the best deal for your coverage.<\/p>\n According to Ben Galbreath, an Ohio-based independent insurance agent at Wallace & Turner, shopping for insurance can help drivers lower their premiums, even when rates are on the rise overall. \u201cI recommend to my clients that I shop for them every two to four years, depending on how the market looks,\u201d he says.<\/p>\n Also on MarketWatch:<\/strong> Americans are about to have $100 billion less to spend. Here\u2019s what\u2019s behind it.<\/p>\n If you\u2019re open to granting insurers access to your driving data, enrolling in a\u00a0safe driving tracking program\u00a0can lead to savings. Some insurers offer a discount when you sign up for the program and may reduce the premium even further if you consistently practice safe driving habits, such as avoiding hard braking and using turn signals.<\/p>\n Although telematics programs often come with savings \u2014 Means\u2019 enrollment in Allstate\u2019s Drivewise program came with a $46 discount \u2014 they don\u2019t always. Additionally, data privacy concerns make this an unattractive option for many.<\/p>\n Read<\/strong>: 7 must-have safety features for your next car<\/p>\n Increasing your\u00a0deductible\u00a0is a surefire way to bring down your insurance premium, but it can cost more in the end if you happen to file a claim. Means increased her comprehensive and collision insurance deductibles from $250 to $1,000. Although this change significantly helped reduce her premium, she now stands to pay four times as much out of pocket if she files a claim under these coverage types.<\/p>\n Both\u00a0comprehensive and collision\u00a0coverage pay for damage to your own car after a wreck, and payouts are limited to the value of your car after you\u2019ve paid your deductible.<\/p>\n While raising deductibles can be cost-effective for some, Galbreath suggests having a deductible you\u2019d be comfortable paying and ensuring the lower premium makes up for the higher potential out-of-pocket costs. \u201cHow many years are we going to gamble with saving that?\u201d he says.<\/p>\n Also see:<\/strong> The 9 things that are most likely to affect your auto insurance rates<\/p>\n The changes Means made to her car insurance policy helped her save but might not be the best option for everyone. If you\u2019re looking to cut down your auto insurance payments, consider:<\/p>\n You might like: <\/strong>Before buying an EV, consider these hidden costs of ownership<\/p>\n There are plenty of areas where car insurance expenses can be trimmed, but\u00a0liability insurance, which covers damage and injuries you may cause in an accident, is one to think twice about. Medical bills can reach six figures after a bad accident, and should you get sued, liability insurance covers your defense and costs.<\/p>\n \u201cThe one thing I\u2019ll say you never want to do is compromise your liability,\u201d says Judith Bell-Williams, senior vice president and personal lines practice leader at Univest With auto insurance premiums on the rise, it\u2019s easy to want to cut costs above all else. But don\u2019t settle for insufficient coverage to make that happen \u2014 shop around to find a more affordable policy offering the coverage you need.<\/p>\n More From NerdWallet<\/strong><\/p>\n Isabel Contreras writes for NerdWallet. Email: icontreras@nerdwallet.com. Twitter: @https:\/\/twitter.com\/ContrerasNews.<\/em><\/p>\n<\/p><\/div>\n
\n PGR,
\n
\n but when the renewal rate for her six-month full-coverage policy came in at $911, Means started to think she could probably get a better deal for her coverage.<\/p>\n
\n ALL,
\n
\n that offered her a $574 six-month premium. She had not been convinced switching insurers would make such a difference until she got an offer from Allstate in the mail. \u201cI think seeing the breakdown was very helpful for me,\u201d Means says.<\/p>\nShopping around for auto insurance can help you save<\/strong><\/h2>\n
Safe driving telematics programs can land you a discount<\/strong><\/h2>\n
Weigh the option of increasing your policy\u2019s deductible<\/strong><\/h2>\n
Other ways to lower your auto insurance payments<\/strong><\/h2>\n
\n
Some coverage is not worth cutting<\/strong><\/h2>\n
\n UVSP,
\n
\n Bank & Trust Company. \u201cA lot of carriers actually give discounted pricing for higher limits,\u201d she adds, explaining that insurers see people who seek more coverage as more responsible citizens.<\/p>\n