SALT LAKE CITY (KUTV) — Car insurance policy prices in the U.S. have risen 20 percent over the past two years. The national average for an annual policy is now $2,311, according to Bankrate.
In Utah, the average cost is slightly lower, about $300 less than the national average. Shannon Martin, an analyst at Bankrate, said Utah drivers pay an average of $2,078 per year for their car insurance.
“Auto insurance has become a very large monthly bill for most Americans,” Martin said.
The cost of your policy can be due to anything from inflation to your credit score.
Martin said car parts, car repairs and hospital stays cost more these days and this is reflected in policies – but insurers also consider your credit score to determine your risk level.
“Bankrate found that drivers with poor credit scores pay as much as drivers convicted of drunk driving,” she said.
If your credit score is low to mediocre, that’s a good reason to improve it and use your improved score to go to a new insurer who may offer you a better rate.
To reduce insurance costs, Martin also recommends reviewing the policy and asking your agent about possible discounts. For example, if you take a defensive driving course or have a teen driver with a grade point average of at least 3.0, you may be eligible for discounts.
Also consider whether your policy requires additional benefits such as lockout or towing protection, which you may already have through a credit card or other roadside assistance service.
Martin also said you can lower your premium by opting for a policy with a higher deductible, but stressed the importance of saving the amount of the deductible in the bank in case of an accident.
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She warned against saving on liability insurance, as this could lead to high costs after an accident.
“We don’t want people to walk away from coverage that protects them financially, like by lowering the amount of liability,” Martin said. “Currently, your liability insurance doesn’t go as far as it used to, so you should really look to increase that coverage rather than decrease it. Yes, it will cost you more, but you’ll be surprised how little it costs.”
When reviewing liability limits or other changes in your policy, discuss all of these questions and issues with your agent first and then decide whether you want to look for another provider because the reality is that premiums are higher with all insurance companies.
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