If you are looking for ways to cut back on expenses and save money, you might want to consider reviewing your car insurance policy.
You may be paying more than necessary for certain coverages, or you might not be taking advantage of discounts that could reduce your premium.
If you are a good student or a safe driver, you could save even more money on your car insurance. Even if you have a history of minor traffic violations or accidents, there are still ways to lower your premium.
While it is important to have adequate coverage in case of an accident, you don’t have to pay more than you need to. Check out our guide for tips and tricks to help you find cheaper car insurance that fits your needs and budget.
How to Get Cheaper Car Insurance in 8 Easy Ways
Your auto insurance premium is making it difficult to pay your monthly bills. Take a look at these tips to find cheaper car insurance and save money today.
1. Activate a Safe-Driver Discount
Staying alert while driving can not only save your life but also help you save money. Having a clean driving record is crucial to getting the best premiums as insurance providers won’t consider you a liability. However, if you have a few blemishes on your driving record, you may end up paying a higher premium.
Incidents like traffic violations, at-fault accidents, and driving under the influence (DUI) can seriously affect your chances of getting cheap insurance. If you haven’t had any incidents in your driving record for the past three to five years, you may be eligible for a safe-driving discount.
2. Enroll in a Defensive Driving Course
Your insurance provider may offer a policy discount if you complete an approved defensive driving course. Depending on the regulations in your state, you may be able to take an accredited training course in person.
These courses vary in length and typically cost less than $100. If you need a convenient at-home option, consider the National Safety Council’s online defensive driving course.
This money-saving strategy is particularly beneficial for young drivers under 25 and people over 60, who have a higher risk of being involved in car accidents.
However, before paying for the course, double-check with your auto insurance company to see if any discounts are available.
3. Reduce Your Annual Mileage
If your insurance company takes into account the number of miles you drive when calculating your premium, you may want to consider reducing the amount of driving you do each year. Check with your insurer to determine the mileage thresholds in place, so you know how much you need to cut back on your driving.
One option to reduce your driving is to use public transportation, such as a bus or trolley, or to ride a bicycle to work. Biking to work is a great way to improve your physical health and save money at the same time. By reducing the number of miles you drive daily or weekly, you may also be eligible for an auto insurance discount.
4. Install Anti-Theft Devices in Your Car
Your car insurance carrier might offer you a discount if you install an anti-theft device in your car. If your vehicle does not have one already, you may want to consider getting one.
It is best to check with your agent to see which measures can assist you in obtaining a lower car insurance rate. Examples of anti-theft devices include:
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– A hidden kill switch can prevent thieves from stealing your car by disconnecting the vehicle’s electricity.
– An audible car alarm can alert people in the area and draw attention to your vehicle in case of theft.
– A brake lock can immobilize your car’s brakes, making it difficult for thieves to drive your vehicle.
– A remote lock that can be activated through a mobile app on your smartphone.
– A lock that clamps onto your car’s steering wheel can prevent thieves from driving your vehicle.
5. Get Rid of Unnecessary Insurance Coverage
Adjusting your insurance coverage level is an easy way to reduce costs. If you don’t require roadside assistance or car rental coverage, you could save money by removing them. You may also consider switching from a full-coverage auto insurance policy to a personalized protection plan that caters to your particular needs.
Let’s say you have an older car that you wouldn’t mind replacing but are waiting for it to break down. Based on its condition, you may not need collision insurance to cover the costs of restoring it. You could lower your premium by removing this coverage and taking responsibility for replacing the car yourself.
While removing unnecessary coverage can lower your premium costs, accidents are unpredictable and can be expensive. To ensure you have adequate coverage in case of an accident, review your auto policy with your insurance agent. Your agent can also help you determine which plans to keep or remove.
6. Switch to a Pay-Per-Mile Insurance Plan
If you are considering changing your insurance provider and want to explore new options, you might want to try a usage-based insurance program, also known as black box insurance.
This program uses technology to track and record the number of miles you drive. With this pay-as-you-drive policy, you only pay for the miles you actually drive instead of an estimated amount.
You can access black box insurance through a device that you install in your car or via an app on your smartphone. This type of insurance can be a good way to get cheaper car insurance if you have low annual mileage.
7. Improve Your Credit Score
It’s important to be responsible when paying off your credit card debt and insurance premiums. Missing a monthly payment can hurt your credit score, so it’s best to stay disciplined and pay on time.
In fact, paying your car insurance on time can actually help build your credit, which can improve your chances of getting better deals in the future.
Having a good credit rating is generally beneficial, so it’s a good idea to learn how to access your free credit report to monitor your credit health. Knowing your credit score can help guide you in making responsible financial decisions.
And if you notice any errors on your credit report, you can take steps to resolve them before they negatively impact your score.
8. Downsize Your Daily Driver
If you are going through a difficult financial situation, it might be a good idea to consider downsizing your vehicle. Owning a luxury SUV or a car with low fuel efficiency could put a strain on your finances.
Additionally, insuring a luxury car can be more expensive than a more practical option, like a minivan. It is advisable to live within your means until you build up your financial strength to an optimal level.
One option to save money is to consider purchasing a used car. An older car is likely to be more affordable to insure, which can make it a good temporary solution. However, it is important to consult with your insurance company to ensure you still receive quality coverage.
Contact Your Car Insurance Provider
Speaking with your insurance agent is a great starting point for finding cheaper car insurance. You can ask them about any available discounts that you might have missed out on when you originally signed up.
For instance, if you are an active duty or veteran, your provider may offer cheaper insurance for military members. Another money-saving strategy that you could try is increasing the price of your deductible.
The lower your car insurance deductible, the more you will pay for your premium. Conversely, if you have a higher deductible, your premium will cost less.
Some of the most popular car insurance companies like to reward members for their loyalty. Your agent might suggest that you bundle insurance policies, such as auto and home insurance. Alternatively, you could activate a multi-car discount if your family owns more than one car besides your main vehicle.
Shop Around for Cheaper Car Insurance Rates
If you think your current insurance policy is too expensive and it’s almost time for renewal, it might be a good idea to look for a better option. Your current insurer may no longer be the best match for you.
You can compare different insurance companies to find the lowest rates and get free car insurance quotes. However, it’s important to keep in mind that cheap insurance doesn’t always guarantee good quality.
In case you need to file a claim, the insurance company should have the financial strength to pay for it. Therefore, it’s crucial to consider the creditworthiness of the company before choosing the cheapest car insurance quote.
Which Factors Raise Your Insurance Premium?
There are several ways to obtain affordable car insurance, but it is essential to know what can increase the cost of your insurance.
If you have a history of multiple traffic violations or car accidents, you are considered a high-risk customer. Insurance companies may upcharge you because you are a liability to insure.
Additionally, the state you reside in may have specific laws that require a minimum amount of insurance coverage. Failing to comply with these requirements can result in hefty fines, a suspended driver’s license, or even impoundment of your car.
To avoid unintentionally raising your insurance premium, it is crucial to keep an eye on these factors. Consider taking a defensive driving course to reduce points on your driver’s license, and check your policy to see if your insurer offers an accident forgiveness program. They may be willing to work with you to prevent your rate from increasing.
Remember, affordable insurance is possible with a change in driving habits.
Frequently Asked Questions
Which Details Are Needed to Get an Insurance Quote?
Obtaining an auto insurance quote is a simple process, especially if you have all the necessary information. To get a quote, you will need to provide your personal information and driving history.
Additionally, the insurance company will require you to provide information about the vehicle, including its Vehicle Identification Number (VIN), mileage, purchase date, and the address where you plan to keep the car.
Having this information readily available can help you save time and money when shopping for an auto insurance policy.
Why Is Car Insurance So Expensive?
Car insurance companies determine the price of your premium based on your individual circumstances. If you have a poor credit score or a bad driving history, the insurance company may consider you a higher risk and charge you more. Additionally, if your car is expensive to insure, you may have to pay a higher premium.
Sometimes, insurance companies also base the cost of car insurance on the state where you reside. For instance, Delaware, Louisiana, and Florida have the most expensive car insurance rates.
Meanwhile, Maine, Idaho, and Ohio have some of the lowest average car insurance rates. If you live in one of these locations, you may be able to secure a lower premium.
Even if you find the cheapest car insurance, it may still be costly if the coverage for damages or accidents is insufficient. That’s why it’s crucial to shop around for policies that offer the best value and meet your needs.
How Do First-Time Drivers Get Cheap Car Insurance?
As a first-time driver, getting good insurance can be intimidating, as insurance companies often consider you high risk. This means that finding affordable car insurance, especially if you’re a young driver, can be a discouraging experience.
However, there is good news for those who have good grades: some insurance companies offer a good student discount. By staying enrolled in school and maintaining good grades, you can receive less expensive car insurance.
Another option to consider is custom coverage, such as black box insurance. Rather than paying a high premium for comprehensive coverage, pay-as-you-drive insurance may be a more convenient and affordable option if you only use your car to travel to school or work a few times a week.
If you want to secure long-term savings with affordable car insurance that fits your driving needs, it’s worth looking into safe-driver, good-student, or multi-policy discounts to get the cheapest rate. These strategies are not one-size-fits-all, but they can help you reduce your insurance costs and find the best deal for you.
