Suze Orman: 4 Things To Do Amid Rising Car Insurances Costs
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Chris Adam
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If you’re tired of rising car insurance rates, you may need to shop around. Still, it might seem like there’s no good choice at the moment.
While insurance costs have skyrocketed over the past few years, financial expert Suze Orman said there are still some things to do to save money, especially if you’re looking to get yourself a ride for the long haul.
Rising Rates
Let’s start with the bad news — this is now the third consecutive year of car insurance premium rates rising at a rapid pace. According to Orman, government stats show the annual premium cost is about 50% higher than it was in the summer of 2021.
According to Orman, “The reality is that car insurance is now so expensive it has shifted from one of those costs you just swallow hard as a necessary household expense, to a big budget hit that deserves your strategic attention on how to (safely) minimize your costs.”
Orman said here are four things you can do amid rising car insurance costs:
1. Rethink Ownership
You might want to consider how many cars, if any, you and your household really need. With the savings, you might be able to pay off some debt and put it toward emergency savings.
2. Shop Around
You could start with your current insurer and make sure you’re taking advantage of all savings opportunities. Perhaps your employer also offers cheaper options. Finally, look at organizations. “Many professional and trade associations, alumni groups and even fraternity and sorority associations often negotiate discounts with insurers,” according to NBC News.
3. Increase Your Deductible
If you have enough in your emergency savings to cover an incident, a higher deductible will reduce your premium costs.
4. Look Before Buying a New Car
According to Orman, “It’s not just that a more expensive car will typically have a higher premium cost than a less expensive car, but the repair costs for a given model, and its popularity among car thieves can also come into play.”
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