CINCINNATI — According to insurance comparison site The Zebra, the average cost of car insurance is now more than $2,000 a year. That breaks down to about $181 per month.
For many drivers, that number is hitting them hard. Laurel Salamon said her rate used to be manageable.
"We had a great rate for two cars, two drivers — about $1,200," Salamon said.
Until a recent spike caught her off guard.
"This year, when we got our renewal, it was over $2,000," Salamon said.
WATCH: What to do to lower your auto insurance premium
Dan Scroggins, vice president for personal alliance insurance at AAA, said Salamon is not alone and there are several reasons behind these increases.
"The primary factors were coming out of the pandemic, there were supply chain issues, which caused delays in parts being delivered," Scroggins said.
On top of that, repair costs are climbing. Today’s vehicles are equipped with advanced technology, from sensors to backup cameras to collision alert systems, and all of it is more expensive to fix.
With rates going up, there are ways to bring yours down.
1. Check your driving record
Scroggins said it starts with something simple: your driving record.
"So if your driving history includes speeding tickets and accidents, you probably can assume that you're going to pay a little bit more than someone who is a safe driver," Scroggins said.
2. Look into usage-based programs
He said many insurers now offer usage-based programs that reward safe driving.
"A lot of times, carriers are going to offer some kind of a discount for that," Scroggins said. "In many cases, up to 30% if you're a really good driver."
3. Consider adjusting your deductible
Another option is adjusting your deductible.
"You can take a higher deductible on comprehensive or collision, and that can sometimes also help mitigate some of those premium factors," Scroggins said.
But that move comes with a trade-off. Lower monthly payments could mean higher out-of-pocket costs after an accident.
"You may be able to lower your premiums by taking a higher deductible, but if you’re involved in an accident, you’ve got to come up with that entire deductible at the time of loss," Scroggins said.
4. Shop around for the best rate
If you are not sure whether you are overpaying, shopping around can make a difference. Groups like AAA can compare carriers to help you find the best rate.
"We can look at other carriers and say, 'OK, yes, you’re paying too much,' or 'No, you’re right in the sweet spot, you’re exactly where you should be,'" Scroggins said.
If your insurance bill feels too high, do not ignore it. Pick up the phone, shop around, and make sure you are not overpaying, so you don't waste your money.
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