You really can lower your car insurance costs

It is getting more expensive to insure your car, but there are some steps you can take to keep premiums affordable.

Average annual U.S. automobile-insurance rates rose to $1,548 in 2019, said an analysis by the Zebra, an insurance comparison website. While that was just a 2% increase from 2018, it followed several years of larger increases, the report said.

Advanced technology is partly to blame, the Zebra said. Automakers are using more anti-theft and safety features, like collision-warning systems and blind-spot monitors, which make them safer but more expensive to repair after an accident.

Even a minor fender bender can prove costly to fix, said Robert C. Passmore, assistant vice president of the American Property Casualty Insurance Association. Modern bumpers may house advanced sensors that must be replaced or recalibrated after an accident. "They save lives and reduce the number of accidents," Passmore said of the new safety systems. "But there's some costs that come with it."

Insurers are also imposing tougher penalties, or surcharges, for drivers ticketed for distracted driving. The average surcharge for texting while driving, for instance, is 23% of the premium, or more than $350 a year, the report found. These fees typically last for several years.

How they set rates

Insurers use multiple criteria to set auto rates, including a driver's age, driving record and typical annual mileage. Criteria vary, since state governments set insurance rules. Some states allow consideration of a person's credit history — the better your credit score, the more you save — so it helps if you pay your bills on time. Some let insurers consider a customer's marital status and occupation. At least a half-dozen states have banned the use of a driver's sex in setting insurance rates. (Nationally, women pay rates that are about 1% higher, the Zebra found, but the disparity is greater in some states.)

Compare different insurers

One way to keep premiums down, experts and consumer advocacy groups said, is to compare quotes from different insurers, ideally every year or two. "It's worth a little bit of effort," said J. Robert Hunter of the Consumer Federation.

If you find a lower rate, state insurance department websites often offer information about consumer complaints, to help you evaluate a company's record of handling claims before you switch.

You may want to go beyond the most visible brands: Consumer Reports included some lesser-known companies, like Amica Mutual Insurance, among its highly rated insurers.

Keep an eye on your deductible

Mind the gap

And be careful not to let your policy lapse, said Nicole Beck, a spokeswoman for the Zebra. Even a short gap, she said, could trigger a substantial increase when you buy a new policy. People who drive infrequently may want to consider usage-based insurance, which uses technology to monitor driving and can save about 3%, the report found.

For help in understanding coverage, try an online guide from the National Association of Insurance Commissioners.

Here are some questions and answers about car insurance:

Q: Are some cars more expensive to insure than others?

Q: Am I required to insure my car?

A: All states except New Hampshire require minimum levels of liability coverage, which pays for another person's property damage, medical care and other costs caused by you.

Other types of coverage are usually optional (although if you finance a car, your lender may require them). They include collision coverage, which pays for damage to your car if it hits another car or something else, like a tree or a wall; and comprehensive coverage, which covers damage to your car from most everything else, like fire, hail, flooding and theft.