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
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.
, 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
, 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.
. 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.
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.
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.
, 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.
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.
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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