Why did my car insurance go up in 2024?

Increasing Car Repair Costs Expensive cars like luxury vehicles and high-end sports cars — those with higher repair costs to begin with — were always pricier to insure. But now that repair costs have increased across the board, insurance companies have begun to quickly hike rates to keep up.

What is the simplest way to lower your auto insurance premium?

Increase your deductible Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can decrease your auto insurance payments.

Can you negotiate insurance rates?

Although you can't negotiate your car insurance rate , you're not contractually obligated to stay with your insurance company. If you find a cheaper rate elsewhere, you can switch insurance providers. Depending on when you cancel and the fine print of your car insurance policy, you could incur fees.

What 2 things could reduce your insurance premium?

Take advantage of discounts Bundling home and auto isn't the only way to save: Insurance companies offer a variety of discounts, including for safe drivers, students and members of the U.S. military.

Why is AAA insurance so expensive?

AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies . Each regional club operates independently and sells insurance policies underwritten by different agencies.

Does credit score affect car insurance?

On average, drivers with poor credit pay 118 percent more for full coverage car insurance than those with excellent credit . California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.

What are at least two ways you can save on auto insurance?

Low mileage discount : You could save by driving under a certain number of miles per year, as specified by the insurer. Multiple policy discount: You can often save money on car insurance and home insurance by bundling with the same carrier.

What are 4 factors that will affect the cost of your auto insurance?

Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose .

How can you reduce your insurance policy payment driver's ed?

Some car insurance companies give discounts to teens for completion of California driver ed courses . Teens also save for being good students or for taking an insurance-approved defensive driving course.

Why do my car insurance rates keep going up?

Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.

How do I change my AAA insurance payment method?

You may change or update your payment information on file at any time through your online account, by visiting your local branch, or by calling us at the toll-free Membership Services number appearing on your AAA membership card .

Can you downgrade AAA?

Yes. After you have joined AAA you can upgrade or downgrade your Membership level or you can add or remove associates at any time. Log in to "My Account" to manage all aspects of your AAA Membership.

How to Lower AAA Car Insurance: Tips for 2024 (2024)

You can lower your AAA car insurance costs by taking advantage of AAA discounts, opting for a higher deductible, and reducing your coverage, among other things. AAA considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.

How to Lower the Cost of Car Insurance from AAA

Use AAA’s auto insurance discounts

AAA offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 27% if they insure two or more vehicles with AAA . Or you can save up to 14% on your premium if there is a student on your policy with a 3.0 GPA or higher.

Raise your car insurance deductible

Opting for a higher deductible on any of your insurance policies from AAA can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Reduce your car insurance coverage

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state.

Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.

Improve your driving record

Practicing safe driving habits and avoiding moving violations can help you qualify for lower AAA insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. AAA even offers a 5% discount to drivers who take an approved defensive driving course.

Build and improve your credit

Because your credit history is correlated with your likelihood of filing an insurance claim, AAA uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.

Drive less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your AAA premium.

Drive an insurance-friendly car

Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from AAA to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.

Sign up for AAA Drive

AAA Drive, the AAA telematics program, rewards you for good driving with a discounted premium. Specifically, AAA Drive tracks speed, acceleration, braking, distracted driving, and the time of day that you drive. By using AAA Drive, drivers can save up to 30% on their rate.

Finally, if you’re still struggling to afford your AAA policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.

This answer was first published on 10/03/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.