VyStar Credit Union’s Tips for Saving on Auto Insurance

Auto insurance is a necessity for drivers, but rising costs can strain budgets. With inflation, supply chain disruptions, and increased accident rates driving premiums higher, finding ways to save on car insurance has never been more important. VyStar Credit Union is here to help you navigate these challenges with practical, money-saving strategies.

Why Auto Insurance Costs Are Rising

Economic Inflation and Repair Costs

The cost of auto repairs has surged due to inflation and supply chain delays. Advanced vehicle technology means even minor accidents can lead to expensive fixes, pushing insurers to raise premiums.

Increased Accident Rates

Distracted driving, speeding, and post-pandemic traffic surges have contributed to more accidents. Insurers adjust rates based on risk, so higher claim frequencies mean higher costs for policyholders.

Severe Weather Events

Climate change has led to more frequent and intense storms, floods, and wildfires, resulting in more comprehensive claims. Insurers in high-risk areas are passing these costs to consumers.

VyStar’s Best Strategies to Lower Your Auto Insurance

Shop Around and Compare Quotes

Loyalty doesn’t always pay. Rates vary widely between insurers, so comparing quotes every 1-2 years can uncover significant savings.

How to Compare Effectively:

• Use online comparison tools.
• Check customer reviews for reliability.
• Ask about discounts (bundling, good driver, etc.).

Bundle Your Policies

Combining auto and home insurance with the same provider often unlocks multi-policy discounts. VyStar members can explore bundled options for extra savings.

Increase Your Deductible

A higher deductible lowers your premium. Just ensure you can afford the out-of-pocket cost if you file a claim.

Maintain a Good Driving Record

Traffic violations and accidents spike premiums. Defensive driving courses can sometimes offset minor infractions.

Leverage Discounts

Many insurers offer discounts for:
- Low annual mileage.
- Safety features (anti-lock brakes, lane assist).
- Good student grades.
- Military or professional affiliations.

Pay Annually or Semi-Annually

Monthly payments often include fees. Paying upfront can reduce overall costs.

Drive a Less Expensive Car

Luxury and high-performance vehicles cost more to insure. Opting for a safer, mid-range model can cut premiums.

Improve Your Credit Score

In most states, insurers use credit-based insurance scores to set rates. Better credit = lower premiums.

Usage-Based Insurance (UBI)

Telematics programs track driving habits (mileage, braking, speed) and reward safe drivers with lower rates.

Special Considerations for 2024

Electric Vehicles (EVs) and Insurance

EVs can be pricier to insure due to costly repairs. However, some insurers offer green vehicle discounts.

Rideshare Drivers

If you drive for Uber or Lyft, personal auto policies may not cover commercial use. Ensure you have proper coverage.

Watch for Rate Hikes

Insurers are adjusting rates due to economic pressures. Stay informed and be ready to switch if your premium jumps unfairly.

By implementing these tips, you can take control of your auto insurance costs without sacrificing coverage. VyStar Credit Union is committed to helping members make smart financial decisions—start saving today!