Save Money On Car Insurance

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Jessica Fox 16-07-2021

How to Save Money On Car Insurance?

How to Save Money On Car Insurance - ConsumerCoverage

It may be tempting to skip on car insurance by keeping a bare-bones policy. However, to cut costs by nixing coverage just to save money may not be in your best interest.

If you want to save money on car insurance, do so the right way. Read on, and we’ll go over many ways you can reduce your premiums without sacrificing your coverage.

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The Cost of Car Insurance

Even though the cost of car insurance varies by insurance company, all companies will base their rates on the same factors — that’s why it’s crucial to get multiple quotes! Many factors go into determining what your car insurance premiums are, such as:

  • Driving Record: If you have a clean record, then your premiums will be less.
  • Usage: If you commute or put a lot of miles on your car, you’ll pay more.
  • Where You Live: Where you live and how likely you’ll experience vandalism, theft or get into accidents will affect how much you pay.
  • Age: The more driving experience you have, the lower your rates.
  • Gender: Young adults, in particular male young adults, have a higher instance of accidents, so they cost more to insure.
  • Make/Model: Driving a reliable vehicle with a low MSRP price will cost less to repair and less to insure.

Smarter Tips to Save On Car Insurance

If you’re looking to reduce your car insurance, there are plenty of ways to save money that allow you to save money without sacrificing your coverage. If you’re looking for some general ways to save money on your car insurance, these are a great place to start:

  • Pick A Low Cost Car: If you wish to avoid paying higher premiums, buy a mid-priced and safe vehicle. Insurance companies look at how well a car performs in the IIHS safety tests and how affordable it would be to repair. 
  • Shop Around: We can’t stress this enough, don’t just settle on the first car insurance quote you receive; always get multiple quotes before you decide. During these inquiries, be sure to ask about what discounts they offer to their customers as this could further drive down the cost of your insurance. 
  • Credit Rating: It’s one thing to improve your driving record so you can earn a safe driver status in order to save, but it’s interesting to note that improving your credit score can also reduce your premiums.
  • Decrease Coverage On An Older Vehicle: If you’re driving an older vehicle, you may be able to drop collision or comprehensive as it may not be worth repairing your vehicle should you get into an accident.
  • Group Insurance: Like health insurance, many companies offer group auto insurance, so check to see if it’s available.

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Ask Your Insurance Provider About These Discounts

When you’re shopping around for car insurance, these are the kinds of discounts you want to see if you’re eligible for:

  • Multi-Car Discounts: If your household has multiple drivers — usually this means a spouse or adult children — you’ll qualify for multi-car discounts. However, teen drivers will cost more, but there are discounts available to young drivers to cut costs like the good student discounts.
  • Deductibles: Sometimes, if you pay a little more upfront, you’ll save in the long run; this goes for car insurance too. Rather than paying less for your deductible, you’ll pay a lower premium if you pay a larger chunk upfront. Just be sure to consult with your insurance company on much you’ll save by doing this.
  • Safe Driver: With more drivers on the road and more distractions than ever before, you’ll earn safe driver discounts if you can avoid getting driving infractions, like speeding tickets. Typically being a safe driver can result in a percentage off your premiums, anywhere from 10%-23%.
  • Professional Driving Course: Taking a professional and accredited driving course, like defensive driving, especially for young drivers, can mean discounts. Discounts could mean a percentage off their rates or a reduction of points (not demerits, but the more points you gather from moving violations, the higher your premiums). However, before you enroll in a class, call your provider first to find out how much you’ll save.
  • Anti-Theft Device: Some car insurance companies incentivize their customers with attractive discounts to get anti-theft devices like LoJack or car alarms. But, if your car didn’t come with it, be sure to investigate if the savings would make the cost of installation worth the hassle. 
  • Infrequent Driving Discount: The fewer miles you put on your car, the less likely you will encounter an accident; you can get this working in your favor if you carpool to work or take public transit to reduce your mileage. Another option is pay-per-mile, where you install a transmitter in your car that tracks how many miles you clock and how safely you drive: score well and pay less.
  • Bundle: If you like the service you’re getting at your insurance company and they sell other insurance products, then do yourself a favor and bundle something like home and auto insurance for even greater savings.
  • Additional Discounts: Every insurance company offers their own plethora of discounts, so it’s always worth the time to call your provider to find out which discounts you’re eligible for.

Save Money On Auto Insurance

It’s only natural to want to save money on car insurance, so you have more money in your pocket, and with these tips and ideas for cutting your car insurance rates, you can do so the right way — without sacrificing your coverage!

Jessica FoxJessica Fox has been a freelance writer for five years, with a specialty in health, wellness, and insurance. During this time, she’s written for some of the biggest B2B and B2C brands from around the world. Jessica is also the mother of two young daughters and loves coffee, writing, and working out.