11 Ways to Get Cheap Car Insurance That's Actually Good

Don’t assume any one company has the cheapest car insurance rates. To find a cheap policy that’s actually good, shop around for quotes and discounts.
Written by Cheryl Knight
The best ways to find an
affordable car insurance
policy that’s actually good are to shop around for quotes, maintain a clean driving record, and take advantage of your provider’s available discounts.
  • Shopping around for quotes, adjusting your coverage options, and being a good driver are all ways you can find yourself a cheaper car insurance policy.
  • Different providers will offer different discounts, which can make your car insurance policy even cheaper.
  • Your driving history will also have a major impact on what your car insurance costs look like.

1. Shop around for car insurance and get at least three quotes

Each car insurance provider has its own methodology to determine your insurance rate. The more
insurance companies
you check for a quote, the more options you give yourself. 
Try to get a quote from at least three different providers. The cheapest car insurance companies include: 
You should also research the car insurance companies you're interested in using. Rating companies, such as
A.M. Best
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

Shopping for a new auto insurance policy through an insurance broker can increase your odds of finding the cheapest auto insurance option available to you, while helping you save time doing it. 
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 coverage
or require
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 your coverage limits or
even dropping some of your coverage
, such as collision and/or comprehensive 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 stick to your state’s minimum coverage when the cost of it is 10 percent or more of the value of your car.
Keep in mind: If you still owe money on your car or
, this is probably 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.

4. Ask your insurance company for a higher deductible

Another way to reduce the cost of your car insurance is to raise your
. 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. Insurance companies used credit-based insurance scores to set your rates in most states other than California, Hawaii, Massachusetts, and Michigan.
In addition to paying your bills on time and keeping your credit card balances low, you should also check your credit history 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
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

Usage-based insurance and telematics programs allow drivers to bring down their annual premiums by driving less—or by practicing safe driving habits. 
Usually to qualify for a
low-mileage discount
, you need to drive 12,000 miles or fewer per year, but the exact amount will depend on your insurance provider.
Pay-per-mile auto insurance policies are also worthwhile considerations for more infrequent drivers, since your insurance rate is determined based on how far you actually drive.

8. Ask about other car insurance discounts

Asking about other
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:
Keep in mind: Not all of these discounts may be available in all states or with all car insurance companies, and not all discounts are advertised outright. Speak directly with an insurance agent to make sure you’re taking advantage of all the available discounts you’re eligible for with your auto insurance company.

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. Maintain a clean driving record

It’s not just reckless driving or DUIs—even minor driving violations like speeding tickets can result in a spike to your car insurance premium. That’s because your driving history is a significant factor when car insurance providers are considering your level of risk to insure.
High-risk drivers
pay higher rates. 
By practicing good driving habits, you can help keep your auto insurance rate in check.

11. 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.
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