. But that doesn’t mean you’re stuck paying high premiums. These are our favorite car insurance hacks to help you save big.
1. Track your driving: up to 40%
The best way to save money on car insurance is to prove to your insurance provider that you’re a safe driver.
Thanks to the magic of modern tech, many car insurance companies now allow drivers to use a telematics app that tracks driving habits in real time and reports the results to the insurance company.
Most carriers offer discounts based on good driving behavior, which is increasingly tracked and measured through an app on your phone using telematics. You’ll usually get a discount for enrolling in the telematics program, as well as additional savings for good driving behavior.
While that kind of surveillance might make you nervous, the average savings—as much as 30% to 40% off the cost of your policy, according to Consumer Reports—might put you at ease.
Some telematics programs, like Snapshot and DriveEasy, can actually increase your rate if you can’t prove that you’re a safe driver.
is the quickest—and often very best—way to find the best rates on the coverage you need.
Auto insurance premiums aren’t the same across the insurance industry. While one company might give you a high rate for even basic liability coverage due to past accidents, another might look past that car accident and offer you a lower rate.
When you request quotes from Jerry, you can browse the most competitive offers taken from a comparison of dozens of insurance companies. In just a few minutes, you can switch to a new policy and save an average of over $800 a year.
It’s also a good idea to shop for new quotes each time your policy renews. With Jerry, you can turn on automatic reshops and be notified before each renewal if another provider can offer you a lower rate.
3. Buy a (safe) used car: 3.4% per year
Research shows that the cost of car insurance drops by 3.4% with every year a vehicle ages. If you’re in the market for a new vehicle, buying used could significantly lower your insurance costs over buying brand new.
on your car insurance policy, raising your deductible is an easy way to cut down on your monthly costs.
Your car insurance deductible is the amount you agree to pay before insurance kicks in on a comprehensive or collision claim. The lower it is, the more you’ll pay to maintain the policy.
Raising a $500 deductible to $1,000 or more could save you money without sacrificing coverage—but make sure not to
saves drivers between 6% and 26%. If you only have renters insurance, you won’t be able to save as much by bundling, but a 2–9% discount is still worth asking your insurance agent about.
could wipe those points off your record—and having a clean driving record could get you better rates again.
Look into your state’s regulations and check with your insurance company before you enroll in a defensive driving course. In many cases, defensive driving discounts only apply to drivers over 55. If you have younger drivers listed as primary drivers on your policy, your discount might not apply.
You usually can’t get an insurance discount for taking a court-ordered defensive driving course.
10. Park in a garage: 5%
One more modest hack is to park your car in a garage rather than on the street. If you have comprehensive coverage with a qualifying company, some insurance companies will give you a discount for the added security of a garage, which protects your vehicle from the elements and would-be thieves.
FAQs
What is the best way to lower your insurance rates?
The best way to lower your insurance rates is to compare quotes from at least 3–5 insurance companies before you purchase a policy.
What are 3 things you can do to save money on car insurance?
To save money on your car insurance you should comparison shop for quotes, ask your insurance agent about discounts, and practice safe driving habits.
Which is a type of insurance to avoid?
While most types of car insurance add valuable protection, avoid any additional coverages you don’t need. For instance, if you don’t rent cars often, adding rental car coverage to your policy may not be worth the added expense.
How much can you save by paying car insurance in full?
Paying your car insurance in full will usually get you a discount of around 5–10%, depending on the provider.
Does credit score affect car insurance?
In most states, insurance companies are allowed to consider your credit score when they’re setting your insurance rates.
Is it better to pay car insurance monthly or every six months?
If you can afford it, it’s usually better to pay your car insurance in full at the beginning of your term. You’ll usually earn a paid-in-full discount and you may also save on monthly installment fees.
Can you ask your insurance company to lower your rate?
Yes, you can ask your insurance company about lowering your rates. While your actual insurance premium is not negotiable, your insurance agent may be able to help you secure additional discounts that will lower your car insurance costs.
What is the most expensive type of car insurance?
High liability insurance with full coverage and add-ons will be the most expensive type of car insurance—but it will also provide you with the most protection.
What is the difference between comprehensive and collision insurance?
Collision insurance covers accident-related damage. Comprehensive insurance covers damage to your car that’s not due to an accident—like damage from severe weather, falling objects, theft, and vandalism.
What is the cheapest car insurance for teenagers?
Insurance for first-time drivers tends to be high, but you may be able to save by comparing rates and qualifying for discounts (like a good student discount).