Fool's School

Rates for auto insurance skyrocketed by 24% in 2023, according to the folks at Insurify, with a 7% increase expected for 2024. Ugh! Fortunately, there are some steps you might take to help you spend less on it:

• Shop around. Even if your current insurer offered the best rate last year, you might get a better deal from another insurer this year. An independent insurance agent may do the work for you, checking with insurers you would otherwise miss.

• Pay upfront or automatically. Some insurers will charge you less if you pay for a whole year of coverage at once instead of paying incrementally. And some will give you a discount if you sign up for automatic payments.

• Hike your deductible. According to Consumer Reports, you might save $400 to $500 per year by increasing your deductible. If your deductible is currently $500, see what kind of break you'll get by hiking it to $1,000 or possibly more. Just be sure that you can pay that higher deductible if you ever need to.

• Consider skipping collision and comprehensive coverage. Don't do this if your car is still young, but at a certain point, it might not be worth paying a lot for these protections. Do at least keep your liability coverage, though.

• Seek other discounts. There are lots of other strategies, according to Consumer Reports, that can shrink your car insurance premiums. For example, you might get a lower price if you bundle your coverage with a home insurance policy. Taking a defensive driving course may also deliver a discount. If you agree to let the insurer monitor your driving (via an app on your phone or a device installed in your car), it might save you many hundreds of dollars. You can also pay less in premiums if you drive fewer than 10,000 miles annually.

A little digging online can turn up even more ways to save. ¦