How to Save Money on Your Comprehensive Coverage Policy

Maximize Savings on Your Auto Insurance

Comprehensive coverage is a critical component of auto insurance, paying for damage to your vehicle from non-collision events like theft, vandalism, weather, and animal collisions. But it comes at a cost, often increasing your premiums substantially.

The good news is that with some smart moves, you can reduce what you pay for comprehensive coverage without sacrificing important protections. This article outlines practical strategies to save money on your comprehensive auto insurance policy.

Introduction

Comprehensive coverage protects against financial losses stemming from non-crash damage to your vehicle. It covers events like:

• Theft
• Vandalism
• Weather (hail, floods)
• Fire
• Animal collisions
• Falling objects
• Explosions

Lenders require comprehensive coverage on financed vehicles. But for owned vehicles, is it worth the extra premium costs?

The answer is usually yes, as comprehensive provides affordable peace of mind against common risks. However, there are ways to get this essential protection for less.

This article shares actionable tips to lower your comprehensive premiums through comparison shopping, bundling, raising deductibles, and more. Follow these strategies to maximize savings while keeping the coverage you need.

Shop Around and Compare Quotes

Getting auto insurance quotes from multiple insurers is the best way to find affordable comprehensive coverage.

• Compare quotes from at least 3 companies, including local agents, online insurers, and direct insurers.

• Look for the right combination of coverage and price. Consider factors like deductibles, discounts, and bundling options.

For example:

Insurer	Price	Coverage
AAA	$1200	Standard
State Farm	$1000	Preferred
Geico	$900	Standard

Data source: Sample quotes for a 2020 Toyota Camry in Chicago, IL in September 2022. Your rates will vary based on your location, vehicle, driving history and other factors.

Shopping around leads to significant savings on your ideal comprehensive coverage policy!

Bundle Insurance Policies

Bundling your auto insurance policy with other insurance like homeowners or renters is one of the best ways to save on premiums.

• Most major insurers offer a discount of 5-25% for bundling multiple policies.

• The more policies you bundle, the higher the discount you can typically receive.

Common bundled policies include:

• Auto + Homeowners
• Auto + Renters
• Auto + Umbrella
• Auto + Life
• Auto + Boat/RV

Bundling works because it lowers the insurer's administrative costs, and they pass on those savings through discounted premiums.

However, compare quotes from other insurers first, and calculate if bundling with your current company offers the best overall value based on your specific needs and eligibility for other discounts.

Key benefits of bundling:

• Simplifies insurance payments into one bill
• Reduces paperwork from multiple insurers
• May qualify you for additional discounts

Overall, bundling insurance policies allows you to get essential protection you need at a lower price point. Discuss options with your agent to see if bundling makes sense for your situation. Taking advantage of multi-policy discounts can lead to substantial annual savings.

Raise Your Deductible

Voluntarily raising your deductible is an impactful way to reduce your comprehensive premiums.

• Raising your deductible from $250 to $500 could save you 10-40% on premiums.

• Going up to a $1000 deductible can potentially save you 40% or more.

The higher the deductible, the more risk you take on. But monthly premiums will be lower. Consider:

• Only raise your deductible as high as you can comfortably afford to pay out-of-pocket for a claim.

• Have a savings fund established to cover the higher deductible amount if needed.

• Compare quotes at different deductibles across insurers to make sure you're getting the best rate.

• Re-evaluate your deductible yearly and when your finances change. Adjust up or down when renewing your policy.

• Maintain adequate liability, collision, and comprehensive coverage limits that make sense for your vehicle's value.

Deductible Savings Example:

Deductible	Premium	Annual Savings
$250	$1500	-
$500	$1350	$150
$1000	$1200	$300

Data source: Sample rate comparison for a 2019 Honda Civic in Los Angeles, CA in January 2023. Your savings may vary.

Increasing your deductible is an easy way to reduce your comprehensive premium costs without sacrificing important financial protection.

Get Available Discounts

Taking advantage of all possible auto insurance discounts is key to lowering your comprehensive premiums. Most insurers offer a range of discounts:

Good Driver Discounts

Insurers reward safe, accident-free drivers with discounts of 10-30%. Defensive driving courses can boost your savings further.

Good Student Discounts

Full-time students under 25 who maintain a 3.0 GPA or higher can receive discounts up to 25% with proof of academic performance.

Multi-Policy Discounts

Bundling your auto insurance with other policies like homeowners or renters insurance leads to discounts of 5-25% typically.

Usage-Based Discounts

Driving less than a specified mileage threshold, usually 7,500-10,000 miles per year, makes you eligible for low-mileage discounts. Insurers may use a telematics device to track actual mileage.

Auto-Pay Discounts

Setting up automatic monthly payments from your bank account ensures on-time payments. You get rewarded with premium reductions for using auto-pay.

New Car Discounts

Driving a vehicle that's 3 years old or less qualifies you for new car discounts. Newer model cars often have the latest safety equipment that makes them less risky to insure.

Anti-Theft Discounts

Alarm systems, vehicle tracking services, ignition kill switches and other anti-theft devices can reduce your comprehensive coverage costs by up to 25%.

Discuss all possible discounts with your agent when getting a quote. Providing documentation like proof of safe driving courses completed can verify your eligibility. Paying attention to discounts allows you to maximize your comprehensive auto insurance savings.

Drop Unnecessary Coverage

Examining your policy and dropping any unnecessary coverage helps streamline your policy to focus on essential protections.

Here are some coverages to consider removing if they don't apply to your situation:

Collision and Comprehensive Coverage

If you drive an older, paid off vehicle that would be inexpensive to replace, collision and comprehensive coverage may not be cost-effective depending on your policy's premiums versus your vehicle's value.

• Collision covers damage to your car from an accident.
• Comprehensive covers non-collision damage like theft, weather, etc.

Many experts recommend dropping collision and comprehensive when the vehicle's cash value falls below 10 times the premium for the coverage.

Rental Reimbursement

This covers rental car expenses if your vehicle is in the repair shop after a claim. Consider removing it if you have another household car to drive or easy access to public transportation while your car is fixed.

Towing and Labor Costs

Some insurers automatically bundle this coverage that pays for towing and labor after an accident. If you already have AAA or other roadside assistance coverage, you likely don't need this.

Gap Insurance

This pays the difference between what your vehicle is worth and what you still owe if it's totaled. Only necessary if you have an auto loan/lease on a new vehicle that depreciates quickly.

Removing redundant or inapplicable coverage helps lower your comprehensive premiums. But maintain state minimum liability and adequate uninsured motorist protection. Discuss removing coverage with your insurance agent - they can advise what protections are essential for your situation.

Pay Premiums In Full Upfront

Most insurers charge installment fees to split your annual premium into monthly payments. You can avoid those fees and get discounts by paying your premium annually in full.

Benefits of paying annually:

• Avoids installment fees that can add 12% or more to the overall cost
• Earns an upfront payment discount from your insurer
• Potentially qualifies for other discounts like paperless billing

Other advantages:

• Ensures you don't miss payments and risk policy cancellation
• Locks in the annual price upfront
• Less time spent monitoring monthly bills

If paying annually upfront is feasible, it can lead to considerable savings. But there are steps you can take to make it more affordable:

• Shop around for the best annual price across multiple insurers. An upfront payment discount on an inflated premium may still be higher than reasonable monthly payments.

• Build up savings to have the full amount ready. Set aside a portion of what you'd normally pay monthly.

• Consider using your tax refund or a bonus to prepay the full premium for the next policy term.

• See if your insurer offers additional discounts for auto-pay withdrawals or going paperless to lower your total bill.

Discuss your payment options with your insurance agent when purchasing a policy. Prepaying annually may not make sense depending on your finances. But if possible, it can lead to meaningful savings over time.

Improve Your Driving Record

Maintaining a clean driving record free of violations is a major factor in lowering your auto insurance premiums.

Here are tips for improving your driving record:

• Obey all traffic laws to avoid costly tickets and moving violations.

• Allow safe following distance behind other vehicles to prevent rear-end collisions.

• Avoid distractions like cell phones that take your focus off the road.

• Don't drive impaired under any substance that could impact reaction times.

• Practice defensive driving techniques like hazard scanning and preparedness.

• Take a defensive driving course for training in accident avoidance skills.

You can also optimize your record by:

• Checking your MVR for errors and incorrect violations.

• Using ticket dismissal programs. Some insurers remove minor violations after completing safe driving courses.

• Contesting tickets in court if you have a valid defense. Dismissed tickets won't go on your record.

• Maintaining continuous auto insurance coverage to avoid rate hikes from lapses.

The longer you maintain a clean record, the bigger your discounts will be over time. But even correcting past driving mistakes can lower your premiums. Discuss options with your agent to keep your record optimized. Safe driving saves you money!

Buy An Insurance-Friendly Vehicle

The type of car you drive significantly impacts your auto insurance premiums. Certain vehicles cost much more to insure than others. Choosing an insurance-friendly car is an easy way to lower your comprehensive rates.

Tips for selecting a cheaper-to-insure car:

• Opt for a used car over a brand new model. New vehicles depreciate quickly, making them more costly to insure.

• Choose a mid-size or compact sedan rather than a luxury sports car or large SUV. Smaller, modest vehicles have lower associated risk.

• Research typical insurance rates for different cars you're considering. Avoid models known for high premiums.

• Pick a car with high safety ratings and advanced safety tech like airbags and automatic emergency braking. Safer cars cost less to insure.

• Consider a hybrid or electric vehicle. Many insurers offer discounts for alternative fuel or green cars.

Ask your insurance agent to run a quote on any car you're interested in to see the insurance impact. Avoid buying based on appearance alone - the operating costs matter too.

For used vehicles, beware that older high-mileage cars often cost more to insure due to more expensive replacement parts, increased repair costs, and lack of modern safety features.

Ideally, choose a 4-10 year old used car retaining modern safety tech but with depreciation factored in. This can provide an optimal balance of reasonable insurance rates and reliability.

Choosing an insurance-friendly vehicle with lower premiums puts more money back in your pocket over the car's life. Prioritize practical cars known for lower rates over flashy options that inflate your costs.

Review Your Policy Regularly

It's important to review your auto insurance policy regularly to ensure your coverage, discounts, and other details are up-to-date. Outdated policy information can cost you money.

• At renewal, review coverage limits, deductibles, and discounts to see if changes make sense for the upcoming policy period. This is an opportunity to modify your policy as needed.

• After major life events like marriage, divorce, new drivers in the household, vehicle purchases, or moving, promptly contact your agent to update your policy details and avoid gaps in coverage.

• Before long trips, verify you have adequate coverage for the travel duration and location. Some policies limit mileage ranges.

• When adding teen drivers, adjust your policy to account for their licensing since they impact your risk profile and discount eligibility.

• Inform your insurer if you sell a vehicle or stop driving an insured car so it can be removed from your policy.

• After accidents and claims, review your deductibles, liability limits, and premiums and make any necessary changes.

Tips for effective reviews:

• Carefully compare vehicle data, coverages, and discounts to what is currently accurate for your situation.

• Note any discrepancies and outdated details.

• Discuss necessary changes with your agent and provide any required documentation.

• Confirm adjustments in writing and save updated policy documents.

Keeping your insurance information current saves money by ensuring continuous, valid coverage. Schedule regular reviews to protect you and your vehicles.

Ask Your Agent

Your insurance agent is an invaluable resource for optimizing your policy and finding savings. An expert agent provides guidance on:

• Comparing quotes across multiple insurers
• Choosing appropriate coverage limits and deductibles
• Determining discounts you qualify for
• Bundling policies to maximize savings
• Removing unnecessary coverage
• Improving your driving record
• Purchasing an insurance-friendly vehicle
• Reviewing your policy regularly

Discuss your specific situation and needs with an agent. Their expertise helps ensure you get the best possible comprehensive auto insurance rate with the right protections. An agent advocates for you, does the research legwork, and resolves issues on your behalf - working with one pays off in insurance savings.

Conclusion

Comprehensive coverage provides essential protection for your vehicle. While usually required for financed cars, it's still recommended for owned vehicles to safeguard against common risks like theft and weather damage.

The good news is that with smart moves like comparison shopping, bundling other policies, raising your deductible, improving your driving record, and buying an insurance-friendly car, you can reduce your comprehensive premiums substantially.

Discuss your options with a knowledgeable insurance agent. By following these money-saving tips, you can get the affordable comprehensive coverage you need for optimal peace of mind.

More Auto Insurance Savings Resources

How to Lower Comprehensive Insurance Costs

Getting Comprehensive Coverage Discounts

Choosing the Best Car Insurance Payment Option