Save On Auto Insurance In Wa State: Tips And Tricks

Auto insurance is an important purchase, and in Washington state, it's illegal to drive without it. The right insurance coverage can vary depending on your budget and needs, but there are ways to save money on your premiums. For example, you can shop around for lower premiums, ask about special discounts, or consider a higher deductible if you have enough savings. You can also save by bundling your auto insurance with home or renters insurance. When choosing an insurance company, it's important to consider not just the cost but also the company's reliability and customer service.

Shop around for lower premiums

Shopping around for auto insurance is one of the best ways to save money on your premiums. Prices vary from company to company, so it's worth comparing offers from multiple providers. You can do this by directly contacting insurance companies online or over the phone, or by working with an independent insurance agent or broker who can source options for you.

When shopping around, it's important to get at least three price quotes. You can also check with your state insurance department, which may provide comparisons of prices charged by major insurers. While you're shopping around, don't forget to ask about any special discounts the company may offer.

When comparing prices, be aware that online tools that provide estimates of how much you can expect to pay are just that—estimates. To receive an exact rate quote, you'll need to provide some personal information, including your driver's license number and the vehicle identification number of your car.

If contacting multiple insurers seems like a hassle, there are a couple of shortcuts you can take. The first is to have an independent insurance agent or broker compare rates from a number of providers for you. The second option is to use an online insurance marketplace or comparison site that allows you to gather information on multiple policies at once.

It's also a good idea to read online reviews for insurance companies you may be considering, and to ask friends or family for recommendations.

Ask about special discounts

Saving on auto insurance in Washington State is possible by asking about special discounts. Here are some discounts to ask about:

Accident-Free Discount

If your car or its predecessor has been insured with the same company for at least three continuous years without a chargeable accident, you may be eligible for a discount. This discount may increase over time if the policy remains in force and there are no accidents.

Defensive Driving Course Discount

If you are over 55 and have voluntarily completed a Motor Vehicle Accident Prevention Course approved by the Department of Licensing within the last two years, you may be eligible for a 5% discount on applicable coverages. You will need to present a certificate to your insurance company to prove completion of the course.

Drive Safe & Save Discount

This discount is based on your driving behaviour and can save you up to 30%.

Good Driving Discount

If all drivers in the household have had no moving violations or at-fault accidents in the past three years, you may be eligible for a discount.

Good Student Discount

Full-time students under 25 who are in high school or at a college/university and meet certain scholastic requirements may be eligible for a discount. Requirements include being in the upper 20% of the class, having a B grade average or higher, or making the Dean's List or Honour Roll.

Multiple Automobiles Discount

If you have two or more private-passenger automobiles primarily driven by persons residing at the same address, and the vehicles are insured with the same company, you may be eligible for a discount.

Multiple Line Discount

If you are the named insured on a qualifying home, renters, condo, life, or health policy, you may be eligible for a multiline discount.

Passive Restraint Discount

Vehicles manufactured in 1993 or earlier that are equipped with a factory-installed airbag or other passive restraint system meeting federal safety standards may be eligible for a discount.

Steer Clear Safe Driver Discount

Drivers under 25 who have had no at-fault accidents or moving violations in the three years prior and have completed a safe driving program may be eligible for a discount.

Student Away at School Discount

If you are a student under 25 who resides at school more than 100 miles from home and only drives the insured vehicle during school vacations, you may be eligible for a discount.

Vehicle Safety Discount

If you own a 1994 or newer model-year private-passenger vehicle, you may receive a discount based on the loss experience of the make and model of your vehicle.

Consider higher deductibles

When considering auto insurance in Washington state, one way to save money is to opt for a higher deductible. A deductible is the amount you pay out of pocket when you make a claim. The deductible applies to damage to your own property, typically in the case of comprehensive and collision auto insurance. The higher your deductible, the lower your insurance premium.

For example, if you have a deductible of $1,000 and you have an accident that results in $4,000 worth of repairs, you will pay the $1,000 deductible, and your insurance company will cover the remaining $3,000. Deductibles are a way to share the risk between the policyholder and the insurance company. If you didn't have a deductible, you could technically have as many accidents as you wanted, with the insurance company footing the entire bill.

The relationship between the deductible and premium is straightforward: a lower deductible means higher monthly payments, while a higher deductible results in reduced premium costs. For instance, a survey found that increasing the deductible from $500 to $1,000 led to an average premium reduction of 8-10%. However, choosing a higher deductible solely to save money on premiums may not always be the best decision, as it could lead to serious financial consequences in the event of an accident.

When deciding whether to opt for a higher deductible, consider the following factors:

• Financial situation: Can you afford to pay a higher deductible in case of an incident? Evaluate your emergency fund and ensure you have enough savings to cover the higher deductible if needed.
• Payback: Calculate the potential savings on your premium by choosing a higher deductible. Compare the savings with the increased deductible amount to determine if it's worth the risk.
• Driving history: If you have a history of accidents or claims, a lower deductible is usually preferable. On the other hand, if you have a good driving record and a low risk of collision, a higher deductible could be advantageous.
• Risk aversion: A higher deductible equates to taking on more risk. Consider your tolerance for risk and how much coverage and security you need.
• Vehicle value: For expensive vehicles, a high deductible often makes sense as it results in significant savings on premiums. For less valuable cars, a lower deductible may be preferable since the cost of repairs may not justify a high deductible.
• Leasing or financing: If you are leasing or financing your car, choosing a lower deductible is generally recommended. This provides better coverage in case of a claim and ensures you can return the vehicle in good condition.
• Mix and match: If you are a good driver, you may be able to mix and match deductibles. For example, you could have a high deductible for collision coverage and a low deductible for comprehensive coverage, giving you flexibility and optimal coverage.

Compare equal coverages, limits, deductibles, and discounts

Comparing equal coverages, limits, deductibles, and discounts is an essential step in finding the best car insurance in Washington State. Here's a detailed guide to help you through the process:

Understanding Coverages and Limits:

Start by determining the type and amount of coverage you need. Washington State law mandates auto liability coverage, including bodily injury liability (BI) and property damage liability (PD). The minimum limits for BI are $25,000 per person and $50,000 per accident, while the minimum for PD is $10,000 per accident. However, consider your circumstances and whether higher coverage limits would better protect your financial well-being. Ask yourself if the liability limits you choose would adequately protect your assets in an at-fault accident.

Evaluating Deductibles:

Deductibles play a crucial role in influencing your insurance rates. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. By choosing a higher deductible, you assume more risk, but it can also lower your premiums. Ensure that the deductible amount is manageable and aligns with your savings, as you'll need to pay it before your insurance company covers the remaining costs.

Comparing Discounts:

In addition to comparing base rates, consider the potential for discounts. Some companies offer significant savings through bundling opportunities, such as combining your auto and home insurance policies. This approach can result in a substantial discount on your overall rate. Additionally, explore other discounts like accident-free records, vehicle tracking systems, good student discounts, and pay-per-mile plans. These discounts can further reduce your insurance costs.

Using Comparison Tools:

Utilize comparison tools, such as Progressive's AutoQuote Explorer®, to compare rates from different companies. Ensure that you're comparing equal coverages, limits, and deductibles across insurers. This process ensures that you're making an accurate cost evaluation. Remember that each insurance company has its own quoting methodology, so it's essential to compare rates to find the best price for your desired coverage.

By following these steps and taking the time to compare, you can make informed decisions about your car insurance choices in Washington State, ensuring that you get the best value for your money while meeting the state's legal requirements.

Bundle your insurance

If you're looking to save on auto insurance in Washington State, one option is to bundle your insurance. This means buying two or more insurance policies from the same insurance company. While home and auto insurance are frequently bundled, you may also be able to bundle other types of insurance, such as life insurance, renters insurance, condo insurance, or insurance for motorcycles and boats.

Benefits of Bundling Insurance

There are several potential benefits to bundling your insurance:

• Lower Premiums: Most insurance companies offer discounts for purchasing multiple insurance policies. Also known as a multi-policy or multi-line discount, having more than one policy with the same insurer can result in significant savings. For example, Progressive says new customers in Washington State can save more than 20% on average by bundling home and auto insurance, while State Farm customers save an average of $1,073 annually.
• Simplified Account Management: Choosing one insurance company for multiple policies streamlines account management, making it less likely that you'll miss a payment due date. With bundled coverage, you can set up just one account, download one company's mobile app, and schedule automatic bill payments in one place.
• Save on Deductibles: In some cases, if you have bundled insurance and a single event damages multiple insured items, you may only need to pay one deductible rather than multiple deductibles for each policy.

Disadvantages of Bundling Insurance

There are also a few potential drawbacks to bundling insurance:

• Limited Plan Options: If you have specialized insurance needs, you may not find a single insurer that offers the combination of coverage you want. For example, if you have a record of unsafe driving, your best option for car insurance may be a company that specializes in high-risk drivers and doesn't offer home insurance.
• Separate Policies May Be Cheaper: While bundling insurance typically reduces your premiums, it doesn't always result in the biggest savings. The discounts for bundling can vary depending on your location, the insurance carrier, and other factors. It's important to compare rates and discounts from multiple insurers to find the best option for your needs.
• May Prevent Shopping Around: Once you have multiple policies with the same insurer, you may be less likely to shop around for better rates in the future. It's important to regularly compare prices to ensure you're getting the best value for your insurance needs.

Tips for Bundling Insurance

If you're considering bundling your insurance, here are a few tips to get started:

• Contact your current insurance providers to find out how bundling would affect your premiums and what other discounts or policy adjustments may be available.
• Get quotes from other insurance companies for bundled policies as well as individual coverage options. Be sure to compare the same type and amount of coverage and the same deductible to make an informed decision.
• Choose the best option for your needs and apply for the new insurance policy.
• Pay your premium to activate the new coverage.
• Cancel your existing insurance policy and make sure to get written confirmation of the cancellation.

Frequently asked questions