Ways to save on rising car insurance rates: Tips to cut costs amid premium increases

CHICAGO - While your car is a big-ticket purchase, paying to insure it doesn't have to be.

In a FOX 32 Special Money Saver Report, we take a look at how you can save a few bucks with car insurance rates on the rise.

Just like gas, groceries, and just about everything else we buy, your car insurance now also costs you more.

"A lot of us are seeing our premiums go up. That’s because the cost of paying claims for auto insurance companies has gone up. The cost of parts and the cost of repairs and labor has gone up. And there are a lot more claims now than there were a few years ago when we just weren’t driving as much as during the pandemic," said Kevin Brasler.

Brasler is the executive editor for Consumers’ Checkbook. He also says don’t assume your insurance company is giving you the lowest rate just because you are a good driver or that other companies will give you the same rate or charge more.

"And that’s just not true. We find that for almost every driver, there are huge differences in premiums from company to company. And the only way to identify the companies that will give you the lowest rates is to periodically shop around," Brasler said.

He says car insurance companies are now using information like your credit score to determine your rate.

"And insurance companies are increasingly hiding how they calculate rates behind these proprietary algorithms," Brasler said.

So what can you do to reduce your car insurance payment?

"The first thing you want to do is call your own auto insurance company. Find out if there are any promotions that you can qualify for. It could be as simple as setting up e-billing or auto-pay to get a discount on your policy," said consumer finance expert Andrea Woroch.

Woroch says you can also reduce your monthly premiums by making payments more frequently, increasing your deductible, or bundling your car insurance with your home insurance.

"There are online services like Zebra.com that say they will not spam you when you enter your information to get price comparisons from different auto insurance companies," Woroch said.

She says you can shop around online or by calling other insurance companies directly.

When you combine all of these steps, she says it's an easy way to find a little bit of extra cash in your monthly budget.

"We’re looking at up to a 20 percent savings by comparing rates, bundling services, increasing your deductible, and asking for those different promotions," Woroch said.

While some drivers are balancing their budgets by reducing the coverage on their auto insurance policies, Brasler says it's better to shop around and find another company that will still give you comprehensive coverage but at a price you can afford.