Car insurance is necessary but can be expensive. To help our readers and clients, we’ve taken the time to compile several ideas for how you might save on car insurance.
And to be clear – we are not making an endorsement of any car insurance carrier, nor is this post sponsored in any way. Rather, our goal is to arm you with information that you can use in your own search for a good deal. Some of the suggestions we’re about to make may not apply to your situation.
With that, here are some practical ways for saving money on your car insurance:
An easy way to start is by asking your current carrier if you can get a better rate. Alternately, ask your insurance agent to do this for you, as well as gather quotes from other carriers. However, be advised that this won’t always get you a better rate! Sometimes the best deal can be had by sticking with the same carrier for a longer time, particularly if you’re a careful driver.
Did you know that you may be able to save substantially on your premium by upping your deductible? In essence, you are agreeing to pay more out of pocket in the event of a car accident. This may be worth considering if you are a safe driver and can assume the financial risk.
Ask if there are any discounts for paying your premium 6 or 12 months upfront. Often, insurance companies will reward you with savings if you’re able swing this versus paying month-to-month.
Car insurance companies usually offer a variety of discounts. Often, they will share them with you, but don’t hesitate to ask. Some examples of common discounts include:
Sometimes you can enjoy a hefty discount on your car insurance if you also carry renters, home, or life insurance through the same carrier.
While there is debate about the ethics of using credit scores to provide car insurance rates, the reality is that your credit score can play a determining factor. Do what you can to improve your score by making your payments on time and managing credit use wisely.
Need to insure a car that barely gets driven? Make sure to let your insurance agent know. Many carriers offer low mileage discounts or plans based on usage.
Adding a teen driver can often dramatically increase your premium, so take steps to ensure they are being responsible road users. We’ve written about several apps before that can make sure your teen is driving safe – not speeding, texting while driving, or braking excessively.
You will likely pay attention to the monthly payment amount when selecting a new car, but are you also looking into what the car insurance premium will be? The truth is that insurance costs can vary wildly from car to car. We suggest you note the VIN of any car you’re considering purchasing and get a quote before making a final decision.
We saved our best tip for last. We can’t emphasize enough the importance of a clean driving record to ensure you get the best deal on your car insurance!
Having speeding tickets or at-fault claims can skyrocket your premium. Obey traffic laws and speed limits and refuse to drive distracted.
While we understand everyone likes to save money, car insurance is one area you should take care. If you find yourself in the unfortunate situation of needing to file a claim, you’ll be glad you took the time to investigate which companies had good reputations and service. You’ll also be glad you didn’t purchase the cheapest policy possible – the difference can be astronomical if turns out you required extensive medical care.
Interested to learn more about what we recommend when it comes to insurance? Or how to file a claim or deal with an insurance company after a car accident? One of our lawyers, Erik Ladenburg, has written a book called What Insurance Companies Don’t Want You to Know. Make sure to request your free copy today.