11 Car Insurance Hacks to Save You Money
- 1. Shop around to compare rates
- 2. Bundle policies for additional savings
- 3. Park your car in a garage
- 4. Show off your good driving habits
- 5. Increase your deductibles
- 6. Pay your premium annually
- 7. Take advantage of group rates
- 8. Buy a car that’s cheap to insure
- 9. Use snow tires in the winter
- 10. Take a defensive driving course
- 11. Review your coverage and options regularly
The (proven!) best car insurance hack is using Jerry to compare and buy your car insurance policy. But Jerry isn’t the only way drivers can save on their premiums.
Even for drivers with a good driving record, car insurance can be an expensive monthly cost.
Insurance companies use a variety of different factors beyond your driving record to determine your car insurance premium. Your age and location, how often you drive, where you park your car overnight, and the type of car you drive all play a role.
If you’re looking for money-saving car insurance tips, you’re in the right place. Car insurance comparison shopping and broker app Jerry has compiled 11 awesome hacks for landing cheaper car insurance.
1. Shop around to compare rates
The insurance space has a lot of competition and it pays to shop around! Always get multiple quotes before you decide on a provider.
Jerry can help you find the most affordable rates without sacrificing coverage. In less than a minute, you’ll have a variety of competitive quotes from top insurers to choose from.
And when you decide to switch, Jerry takes care of everything for you—from the paperwork to canceling your old policy. The average driver saves $879 on car insurance when they switch plans with Jerry.
The best part? It’s completely free (and always will be)!
2. Bundle policies for additional savings
Insurance bundling is simple—it’s when you save for having several different insurance policies or products with the same company.
The most common types of insurance to bundle are home and auto, though you can bundle with life insurance and renter’s insurance, as well.
You can also look for multi-car discounts by insuring more than one car under the same insurance policy.
If you go this route, be sure that each driver on the policy has a good record. You don’t want to inadvertently raise your rates because your underage son got into an at-fault accident last year!
Most insurers offer bundle and multi-car discounts. While the savings are typically 5-10%, it varies depending on the company and how many policies you’re bundling. In the long run, this could add up to thousands of dollars in savings for you.
3. Park your car in a garage
You may not realize it, but where you keep your car overnight has an impact on your insurance rates.
Insurance companies see public garages and street parking as higher risk, as the chances of something happening to your vehicle is fairly high. This risk is reflected in higher insurance premiums.
Parking your car in a private garage overnight can help you save. Vehicles parked in a garage are less vulnerable to being stolen or being damaged by hit and runs, which will mean lower insurance risk and cheaper rates.
4. Show off your good driving habits
It goes without saying that insurers favor drivers with good driving habits—but it’s not just about your driving record.
Many insurance companies now offer discounted rates in exchange for you using a telematic device that monitors your driving.
Safe driving habits like accelerating slowly, driving defensively and within speed limits, and not braking hard can net you significant savings—sometimes up to 25%!—on your insurance premium, depending on your provider.
5. Increase your deductibles
Your deductible is the amount you pay out of pocket on a claim before your insurance kicks in to cover the rest.
Most insurance policies have a standard deductible of $500. If your car needs repairs after an accident and they cost $2,000, you pay $500 and the insurance company covers the rest.
Increasing your deductible to $1,000 can help lower your premiums since your insurance company would be responsible for less coverage in the event of a claim. But before you do this, be sure that you can afford to pay the deductible if you get into an accident and need repairs.
6. Pay your premium annually
Most customers choose to pay their insurance premium on a monthly basis, but many insurance companies offer a discount if you pay the premium annually.
Though you’ll need to pay a lump sum upfront, you could end up saving hundreds each year.
7. Take advantage of group rates
If you’re a member of a professional or alumni association, credit union, or the military, your insurance company may be able to offer you a group rate. Some companies also secure group insurance rates for their employees.
When you’re shopping around for a policy, be sure to ask if you’re eligible for this.
8. Buy a car that’s cheap to insure
As fun as sports cars and luxury vehicles may be to drive, they’re some of the priciest to insure. Choosing a standard car that gets good safety ratings can help keep your insurance costs down.
The top 5 cheapest cars to insure, according to our data, are:
|Model||Average Annual Price to Insure|
|Honda Civic DX||$816|
|Nissan Murano SL||$1056|
|Honda Element EX||$1086|
|Toyota Scion XB||$1124|
|Subaru Forester 2.5X Premium||$1266|
9. Use snow tires in the winter
Snow tires have different treads, which allow for better traction when stopping and give your car a good grip on snowy and icy roads.
Equipping your car with snow tires through the winter months lessens your risk of a weather-related accident—and that means lower risk for insurance companies.
Many insurance companies will deliver savings of 5% or so simply by swapping out your all-season tires for a winter set during the colder weather.
10. Take a defensive driving course
Whether you’re just getting your license or a seasoned driver, taking a defensive driving course can help make you safer on the road.
Having this kind of course under your belt makes you a lower-risk driver in the eyes of the insurance company. And lower risk equals lower rates!
11. Review your coverage and options regularly
When it’s time to renew your policy, the insurer you initially purchased coverage with may no longer be the cheapest option.
It’s important to review the coverage you have and consider what you need. If you have an older car, for example, you may no longer need collision or comprehensive coverage on it.
Make a habit of shopping around each time your policy comes up for renewal to ensure you’re always getting the cheapest rates.
With Jerry, you’ll be presented with competitive policies to switch to before every renewal. It’s an easy way to make sure you’re not overpaying for your car insurance.
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
Check if you are overpaying for car insurance.
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