It’s that time again. Your car insurance policy renewal notice has come in the mail and you’re asking yourself, “how can I make my insurance cheaper?”
You’re not alone. We’re here to help.
You don’t have to sacrifice value to get cheap car insurance. It’s possible to find excellent insurance that’s still affordable and fully covers you in case of an accident or theft. Here, we’ve covered everything you need to know to lower your car insurance cost and put some money back into your bank account each month.
How you can lower your car insurance
Regardless of which auto insurance company you choose, there are many things you can do to lower the cost of your car insurance.
One of the biggest mistakes you can make with your car insurance is to renew your policy without checking rates with other insurance providers. Now, or when your policy is about to renew, get at least three comparable quotes from other insurers. In addition to their rates, be sure to check their customer service ratings and financial health. If all else is equal, it is easy to switch to the provider that will give you the best coverage at the best price. We’ll go into more detail on this later.
Take advantage of discounts
Insurance companies typically offer special ways to save, and there may be some you’re not taking advantage of.
Here are some of the most common discounts auto insurers offer:
- Low mileage discount: You save by driving under a certain number of miles per year, as specified by the insurer.
- Multiple policy discount: You save by bundling your car and home insurance policies, for example, with the same company.
- Safe driving discount: You save by having a clean driving record. In addition to your driving record, if you maintain safe driving habits, you may earn an additional discount.
- Safety feature discount: You save by driving a vehicle that has safety features like anti-lock brakes and an anti-theft device.
- Military discount: You save if you are active duty, retired military or serving in the National Guard or Reserves.
- Discounts related to profession: You save if you are part of a specific profession, like a teacher.
- Good student discount: You save by maintaining a certain GPA. Younger drivers can be more costly to insure, but discounts can help to reduce that cost. For example, insurers will typically offer a student discount to those who maintain at least a B average in school. Students can also reap additional car insurance savings by taking a driving training course. And students who attend a school at least 100 miles away from home and don’t take their car may also be eligible for car insurance savings.
Drop some insurance coverage
It’s important to be fully covered in case of an accident or theft, but you may not need as much coverage on an older car. Having collision or comprehensive coverage on a car that’s worth less than 10 times the insurance premiums may not be worth it. Speak with your agent to determine if you have more coverage than you need and then consider dropping down to a lower coverage level.
Increase your deductible
There is an inverse relationship between premiums and deductibles. In other words, the higher your deductible, the lower your premium and the lower your premium, the higher your deductible. If you can afford a deductible higher than what you currently have, raising it could reduce your premium. It is important that your deductible be a level you can afford to pay out of pocket in the event of a claim, so don’t hike your deductible to a level you cannot afford.
Improve your credit
Insurers often use credit information to price insurance costs. Those with excellent credit receive the cheapest auto insurance. If your credit could use some work, take time to improve your credit score.
How to find a cheap car insurance company
As we already mentioned, car insurance comparison shopping is one of the best ways to find the cheapest car insurance for your needs.
The first step for finding cheap car insurance is to shop online and get multiple quotes from carriers. Costs can vary drastically by company. You might get a better quote from one company depending on the type of insurance you’re interested in purchasing.
Many insurers now offer tools on their websites where you can compare insurance quotes. These companies compare quotes with major competitors side-by-side. You may still want to independently verify these quotes.
Don’t forget to shop at small auto insurers in addition to large insurers. Regional companies may be able to beat the lowest offers from the major players.
Remember, your ability to find cheap insurance quotes relies heavily on where you live. In order to find more affordable auto insurance for your needs compare carriers by state.
Frequently asked questions
What is the best cheap car insurance?
Finding discounts is often the best way to find cheap car insurance. By sourcing discounts, you can find the highest amount of coverage for the lowest price. Saving by reducing the amount of coverage can lower costs, however, finding discounts allows for higher coverage with a certain percentage off.
What is the best way to compare insurance quotes?
A good place to start is by finding an insurance website that compares quotes side-by-side. However, this method is not a replacement for getting multiple quotes from different insurance agents. Comparing cheap insurance quotes online is a great place to start and can give you some ideas of major insurers in your area.
How can I save on car insurance if I have a bad driving record, poor credit or another factor that can spike car insurance rates?
Often, you can find other cheap car insurance discounts that might help reduce the higher rates. For instance, if you have a bad driving record, you could potentially find a good student discount or military discount. You can also try other tricks, like increasing your deductible or lowering the amount of coverage you carry.