Easiest Ways To Save On Car Insurance
But you may be able to pay less for car insurance by taking a few steps on your own.
The simplest way to save is, of course, driving better. Practice defensive driving don’t speed and don’t drive while distracted. This will help you avoid tickets and accidents, which will raise premiums.
If your driving habits have significantly changed in the past year or so, and they will stay that way, report the updated mileage to your insurer so you’re not paying for driving you’re not doing.
Do this by either updating the insurer’s app, calling the company or speaking to your agent if you have one. In most states, insurers will reduce your rates if there is a significant change from the U.S. average of 12,000 to 15,000 miles per year.
Savings vary from person to person and insurer to insurer. The website Coverage.com found that it could be up to a 27% savings in California, which highly regulates this, to 0% in North Carolina and everything in between.
When I called my agent in Wisconsin to find out how much I could save due to driving less lately, I was told that if my annual mileage was less than 7,000 miles, my rate would go down by $83 for the six-month term or about $14 a month.
If your premium won’t drop by much, or at all, despite not driving much these days, you might look into an auto insurance policy from a company charging by the mile. Allstate, for example, offers this option in certain states with its Milewise program.
Ways To Save Money On Car Insurance Costs
Even if your insurance premiums are or were affordable, theres nothing wrong with trying to save a few bucks. Worse, car insurance rates can fluctuate through no fault of your own. If your states had particularly nasty weather or a rash of theft, insurers may raise premiums to compensate.
It makes sense, then, to stay on the lookout for any ways possible to reduce your premiums and keep more cash in your pocket, bank account, or under your mattress wherever and however you like to save it.
Ways To Save Money On Car Insurance
Penny is an expert on insurance procedures, rates, policies and claims. She has extensive knowledge of all major insurance lines — auto, homeowners, life and health insurance. She has been answering consumers questions as an analyst for more than 15 years and has been featured in numerous major media outlets, including the Washington Post and Kiplingers.Read full bio > >
Ashlee, a former managing editor, insurance, at QuinStreet, is a journalist and business professional. She earned an MBA in 2014 with a concentration in finance. She has more than 15 years of hands-on experience in the finance industry.Read full bio > >
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Searching for ways to save money on car insurance? Look no farther. Here are the best ways to obtain cheap car insurance rates.
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What Are Some Ways You Can Save On Car Insurance
Asked by: Talon Kerluke
- Shop around for your car insurance.
- Compare insurance costs before you buy a car.
- Raise your deductible.
- Reduce optional insurance on your older car.
- Bundle your insurance and/or stick with the same company.
- Maintain a good credit history.
- Take advantage of low mileage discounts.
- Ask about group insurance.
Safeguard Yourself: Uncover The Essential Benefits Of Car Insurance
At some point, many of us will find ourselves behind the wheel, with little thought to the possible dangers that we face on our journeys. The truth is life can take unpredictable turns, and no one is immune to accidents or other unexpected occurrences on the road. Thats why it is essential to safeguard yourself and your loved ones by having insurance. In this blog post, you will discover all there is to know about car insurance: from basic coverage types and amending existing policies through understanding common misconceptions about what insurance can do for you so you wont be caught off guard by anything. Ready? Lets explore how insurance can protect your financial future in case of an accident!
Page Contents
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Keep A Clean Driving Record
Maintaining a clean driving record is among the best ways motorists can access affordable car insurance rates.
Safe drivers prove to auto insurance companies they are not at high-risk for getting into an accident, according to Motor1. This means they will most of the time be cheaper to insure.
Safe driver discounts vary between insurance providers. Motorists can access between 10% and 25% reduction in premiums for adopting safe driving practices.
Bundle Your Insurance And/or Stick With The Same Company
Many insurers will give you a discount if you purchase two or more types of insurance from themsuch as homeowners and autoor have more than one vehicle insured. Some companies offer a price break to longtime customers. There are no guarantees so do your homework and compare costs for a multi-policy discount from a single insurer with buying your insurance separately from different companies.
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When It Comes To Lowering Your Auto Premiums Youre In The Drivers Seat
Having adequate car insurance is both smart and prudent, but there’s no question that it adds to the expense of driving. The good news is that premiums can vary by hundreds of dollars depending on a number of factors. Review your coverage at renewal time to make sure your insurance is in step with your needs, and follow these practical steps to reduce the bottom line on your auto policy.
Do I Have To Have Car Insurance
By default, you are required to have car insurance in almost every state, with the exceptions of New Hampshire and Virginia .
However, some states allow you to furnish proof of financial responsibility. Proof of financial responsibility is a type of self-insurance in which you prove your capacity to pay for damages and other expenses associated with an accident. Depending on your state, you may be required to purchase a bond or make a deposit to guarantee your proof of financial responsibility.
Each state maintains minimum coverage limits for each type of car insurance coverage. If youre financing a car and still owe on your loan balance, your lender may require higher coverage limits, including the purchase of otherwise-optional coverage .
Failure to adhere to your states mandatory insurance limits can expose you to fines, prison time, license suspension, and more.
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Change How You Pay Your Bill
The easiest way to lower your car insurance premium is to rethink your how you pay your bill.
Most national insurance companies offer discounts for paying your premium online, choosing to receive paperless statements by email and signing up for automatic payments. You can also save by paying for a 12-month policy in full instead of making monthly payments.
Drivers who take advantage of these easy-to-get car insurance discounts could save as much as 10%, depending on the insurer. However, most insurance companies have a limit to how much you can save with discounts, or only give signup discounts on your first six-month or 12-month bill.
| Discount |
|---|
| 3%-10% |
Bundle Your Insurance Policies
One of the most straightforward ways to save money on insurance is by bundling your home and auto insurance, meaning you buy multiple insurance policies from the same company.
Allstate, Liberty Mutual and GEICO each offer premium discounts for bundling — depending on which policies and coverages you buy together. You can get discounts on your premium anywhere from 5% to 25%, depending on the provider.
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Compare Rates From Different Insurers
Sometimes, the best way to reduce your car insurance costs is simply to switch insurers. Insurance companies usually use very similar rating factors when setting insurance premiums, but each insurer might weigh these factors differently.
For instance, if your credit history suffers a few dings, you might see an increase in premiums at renewal. However, another insurer might not weigh credit history the same way, possibly resulting in lower rates.
Insurance premiums also reflect the insurer’s costs for all policyholders. Let’s say your insurer experienced widespread claims following a major weather event like a hurricane. Chances are good that policyholders insured by that company will see higher premiums as a result. If another insurer didn’t have the same level of losses, that company’s rates may remain relatively stable.
Although it isn’t always advertised, insurers often cater to a certain market demographic. Some insurance companies might have better rates and more available discounts for young drivers, while others might be a better fit for married homeowners. It often pays to compare rates every year or two to be sure you’re not paying too much for your coverage.
How To Save On Car Insurance: 11 Ways To Lower Your Rate
10 Min Read | Jul 14, 2022
We love car insurance! It protects younot to mention your car, passengers and even other driverson the road. But we hate how much that protection costs . . . and we know you do too.
Thats why were sharing our favorite tips for how to lower car insurance costs. Well start by taking a look at the real cost of car insurance. Then well dive into how you can save.
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Shop Around For Better Car Insurance Rates
If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there.
Remember, cheap doesnt always mean good, and going with the lower-priced company isnt always the wisest decision. Thats because the insurers should also be considered. After all, what good is a policy if the company doesnt have the wherewithal to pay an insurance claim?
To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.coms site bases its insurance company ratings on data assembled by Standard and Poors.
In general, the fewer miles you drive your car per year, the lower your insurance rate is likely to be, so always ask about a companys mileage thresholds.
Ask About Other Car Insurance Discounts
There are numerous auto insurance discounts out there, and they often vary by state and insurance company. Have your agent review available discounts to see if you might be missing out on some. Insure.coms study of car insurance discounts reveals these as the top five biggest money savers:
Biggest discounts and national average savings:
- Student away 14%
- Bundling auto and home- 11%
- Bundling auto and condo 10%
- Good student- 7%
- Bundle auto and renter- 5%
Many auto insurers will give you a discount if you buy two or more types of coverage from them, called bundling. Common policies bundled with auto are home insurance, motorcycle insurance, boat insurance and RV insurance.
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Shop Around For Quotes
The quickest and easiest way to reduce car insurance costs is to shop around with at least three car insurance companies. This can be less time consuming if you take advantage of online car insurance comparison tools that can estimate the costs of several providers at once. While car insurance companies look at a number of the same factors for each driver, how they evaluate those factors varies, which could lead to lower car insurance costs for you. To ensure you receive comparable quotes, you should provide the same personalized information to each company you speak with and seek out quotes on the same day.
Bundle Home And Auto Policies
Bundling insurance policies can help you get a hefty discount from your car insurance carrier. Most insurers offer discounts to customers who buy more types of coverage from their company, such as auto and homeowners insurance policies.
Bundling insurance policies can help you get a hefty discount from your car insurance carrier.
Bundling your home and auto coverage can provide several benefits:
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Save you money on premiums A multi policy discount can save you up to 25% on your premiums depending on insurer and location.
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Easier management of multiple policies You can easily manage different policies when the same insurer handles them.
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Security with one company If you have multiple car insurance claims, your insurer will be less likely to drop you if you have multiple policies.
Find Affordable Car Insurance
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How To Get The Most For Your Money: 11 Ways To Save Money On Your Car Insurance
So youre shopping around for auto insurance. What do you need to know? Well, there are lots of ways at least 11 that you can save money. Many of these money-saving ideas may apply to you.
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Should Car Insurance Rates Decrease Every Year
It depends on what’s changed for you in the last year. For young drivers, you can usually expect lower rates for each year of safe driving, as long as you maintain a clean driving record without tickets, accidents or claims. Once you reach your 30s, rates tend to stabilize until you hit age 60.
Your rates could go up if there are other factors that change besides your age, such as if you trade in your car for a more expensive model to insure, or you move to a big city.
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Shop Around If You Havent In A While
The best way to find the cheapest car insurance coverage is to get quotes from several providers.
This is because how much you pay for car insurance depends on a number of factors, like where you live, the kind of vehicle you drive and your driving record. Even your age, gender and job can impact the cost of auto coverage. Every insurance company considers these factors and determines their rates differently. The quote Allstate sends you is likely to differ from the quote GEICO, Progressive or State Farm sends you.
To make sure youre getting the best rate for the coverage you need, compare quotes from multiple insurers at least once a year if not every six months.
Dont Leave Behind Money You Could Be Saving
There are many other things you can do in addition to simply finding the best deals to save money on your insurance policy. Installing certain safety features, for example, could save you money in the long-term. According to Insurify, something as simple as installing a dashcam can help you save on repairs and clarify fault in the event of an accident or other unexpected damage to your car. Of course, vehicles that feature specialized safety features are considered less-risky by insurance companies.
And once you find an insurance policy that suits you well enough, there is no harm in continuously trying to lower your premium. Changes in your life can help give you bigger discounts with insurance, including in an increase in your credit score, a decrease in the hours you spend on the road, and even getting married or adding a partner to your policy.
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Address Some Common Misconceptions About Insurance
There are a lot of misconceptions about car insurance. Here are some of the most common ones:
1. Car insurance is only for people who own cars.
This is not true! Car insurance is for anyone who wants to protect themselves financially in case of an accident. Even if you dont own a car, you can still get insurance.
2. Everyone needs car insurance.
While it is true that everyone should have some form of insurance, there are some cases where it might not be necessary. For example, if you only use your car for short trips and dont drive very often, you might not need comprehensive or collision coverage. Talk to an insurance agent to figure out whats best for you.
3. Car insurance is expensive.
This depends on a lot of factors, such as your age, driving record, and the type of coverage you choose. However, there are a lot of options available, so you should be able to find a plan that fits your budget.
4. You must buy insurance from your states government.
This is not true! You can buy car insurance from any company you want, regardless of your states laws. Just make sure the company is licensed in your state.
