How to lower your car insurance bill as rates rise this year

Auto insurance costs are up more than 22% since this time last year. It may be time to take that defensive driving course and bank the discount.

Car insurance costs are pretty brutal at the moment — they’re up more than 22% since this time last year. There’s plenty you can do to lower your bill, but some of the best advice out there still requires a certain amount of upfront cash.

For example, paying your annual premium all in one go could eliminate the extra fees some insurers charge customers for paying month by month. But that may not be an option if your budget is tight and your premium has surged.

Insurers have been playing catch-up since the pandemic, said Stephen Crewdson, senior director of insurance intelligence at J.D. Power. They were late to raise rates when auto prices were ticking up, and now their hikes are setting in even as vehicle prices cool. Nearly 14% of consumers reported shopping for new insurance last month, a recent J.D. Power survey found — the highest monthly rate since it started tracking the figure in 2020.

“We should hopefully see these premium increases taper off as time goes by,” Crewdson said.

In the meantime, there are still some ways to lower your bill this year. Here’s where to start.

https://www.nbcnews.com/business/personal-finance/lower-car-insurance-bills-rcna148080

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