WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
By Cheryl Knight
Updated on Apr 27, 2022
Reviewed by Carrie Adkins, VP of Content.
Finding the cheapest car insurance can actually hurt you in the long run.
Most drivers want to save money on car insurance. Why wouldn’t we? But did you know there are actually some risks to getting cheap car insurance?
While you ultimately want to save money when buying auto insurance, it’s very important you actually get the coverage you need.
The main risks of using cheap car insurance include horrible customer service, slow response times, or not having enough insurance to cover damages in an accident. Worst of all, getting cheap insurance can leave you without a car after a crash.
Jerry can help! This car insurance super-app will find quotes from multiple competitors for you to choose from. You can even include your coverage preferences so that you're not getting a cheap deal with cruddy coverage.
You can also avoid the pitfalls of cheap insurance by researching your options when performing an auto insurance comparison. But before you start shopping for cheap auto insurance, here are 10 tips to help you find the most affordable car insurance for your needs.
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1. Shop around for car insurance and get at least three quotes
Start the process by shopping around. The more insurance companies you check for a quote, the more options you give yourself. And while many car insurance policies have similar coverage, there can be some key differences. When looking at car insurance quotes, try to get a quote from at least three different companies.
You should also research the car insurance companies you're interested in using. Rating companies, such as A.M. Best and Standard & Poor’s, can give you information on the financial stability of the insurance companies on your list.
2. Compare costs with an insurance broker
When searching for cheap car insurance, start by getting some quotes from various companies. These cheap car insurance quotes allow you to compare what the car insurance companies have to offer and the price differences between coverage plans.
Jerry allows you to easily compare cheap car insurance plans and what they offer, then make the best choice for your insurance needs. Whether you just need liability insurance or require comprehensive and collision coverage, an insurance broker can make the search way easier.
3. Reduce coverage on your older cars
If you have an older car, you should consider lowering or even dropping some of your coverage. This is especially true if you've paid off your current vehicle and its value has dropped significantly. If you're a safe driver, you can probably drop the extra coverage when the cost of it is 10 percent or more of the value of your car.
Of course, if you still owe money on your car or lease, this is not an option. Most dealers and leasing agents require you to carry full coverage on your vehicle to cover their losses if you're in an accident.
MORE: Cheapest cars to insure
4. Ask your insurance company for a higher deductible
Another way to reduce the cost of your car insurance is to raise your deductible. When you're in an accident, you must first pay the deductible before your insurance company will start paying for any damages beyond this amount.
By paying a higher deductible, you reduce the amount you have to pay out in an accident. This results in savings when it comes to your premium. Depending on your initial deductible amount, you can end up saving 40 percent in some instances. Just make sure you have enough money to cover the increased deductible in the case of an accident.
5. Improve and maintain your credit score
Improving and maintaining your credit score can also result in lower car insurance premiums. Drivers who effectively manage their credit tend to have fewer claims.
In addition to paying your bills on time and keeping your credit card balances low, you should also check your credit record regularly and correct any inaccuracies.
6. Bundle your various insurance coverages
You can also opt to get your auto and homeowner’s insurance from the same company. Most insurance companies offer plans that cover both your home and your car, and they will give you a discount for bundling both.
At many insurance companies you can get even more savings by also getting your life insurance, car, and/or homeowner insurance through the same company.
7. Reduce how much you drive your car
Another way to reduce your car insurance premiums is through driving your car less. Low-mileage discounts require you to drive lower than a certain amount of miles each year.
Usually to qualify for a low-mileage discount, you need to drive 12,000 miles or fewer per year. You can qualify for certain discounts if you drive less than 40 or 50 miles a day.
8. Ask about other discounts
Asking about other discounts can save you money as well. When you're seeking cheap car insurance quotes, ask about the following discounts in addition to the ones mentioned above:
- Antitheft devices
- College students away from home
- Defensive-driving courses
- Drivers education courses
- Long-time customer
- More than one car
- No accidents in three years
- No moving violations in three years
- Student drivers with good grades
Keep in mind that not all of these discounts may be available in all states or with all car insurance companies.
9. Ask about group insurance plans
Some insurance companies also offer group insurance plans. This is usually through an employer, alumni group, or other association. Make sure to check with your employer to find out if they have this type of arrangement with an insurance company.
10. Move to an area with cheaper insurance premiums
If you move to a new area, you should inquire with your insurance company to see what the rates are for your new area.
Unfortunately, drivers who live in urban areas, such as the city, tend to pay higher rates than those who live in the country. But even within the city, a new zip code can mean a lower rate, so it doesn’t hurt to check.
If you are interested in getting cheap car insurance, sign up at Jerry or get the Jerry App in the app store (available on Google Play and the App Store for iPhone) to see if you can find more affordable car insurance. Start saving today!
Jerry is the easiest and most effective way to find a car insurance policy that is customized for you.
After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They even help cancel your old policy! So why do all that extra work when Jerry can do it better?
Haven’t shopped for insurance in the last six months? There might be hundreds $$$ in savings waiting for you.
Judith switched to Progressive
Saved $725 annually
Alexander switched to Travelers
Saved $834 annually
Annie switched to Nationwide
Saved $668 annually