15 Tips and Ideas for Cutting Car Insurance Costs

Key Takeaways

• One of the ways to lower car insurance is through a discount bulk rate for insuring several vehicles and drivers at once.
• Lower car insurance rates may also be available if you have other insurance policies with the same company.
• Maintaining a safe driving record is key to getting lower car insurance rates.

How much Does Car Insurance Cost ?

car indemnity costs are different for every driver, depending on the country they live in, their choice of indemnity ship’s company and the type of coverage they have. But when trying to save money on car indemnity, it helps to know what the distinctive driver pays.

On average, the distinctive person spent $ 1,190 on car insurance in 2018, based on the latest figures available from the National Association of Insurance Commissioners ( NAIC ). According to the NAIC data, car policy premiums rose 30 % between 2014 and 2018, despite the number of guarantee vehicles only rising by 7 % .

Data from AAA put the average cost of car insurance for new vehicles in 2020 slenderly higher, at $ 1,202 per annum. The numbers are reasonably cheeseparing together, suggesting that as you budget for a new car leverage you may need to include $ 100 or so per calendar month for car indemnity .

Note

While some things that affect car insurance rates — such as your driving history — are within your command others, costs may besides be affected by things like department of state regulations and country accident rates.

How to Save on Car indemnity Costs

There are a number of strategies you may use to save on car indemnity. Once you know how much is car indemnity for you, you can put some or all of these tactics t cultivate .

1. Take advantage of Multi-Car Discounts

If you obtain a quote from an car policy company to insure a single fomite, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. indemnity companies will offer what amounts to a bulk rate because they want your business. Under some circumstances they are will to give you a batch if it means you ’ ll bring in more of it .

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the like residence and be related by blood or by marriage. Two unrelated people may besides be able to obtain a discount rate ; however, they normally must jointly own the vehicle .

If one of your drivers is a adolescent, you can expect to pay more to insure them. however, if your child ’ south grades are a B average or above or if they rank in the circus tent 20 % of the class, you may be able to get a dear student discount rate on the coverage, which broadly lasts until your child turns 25. These discounts can range from american samoa little as 1 % to a much as 39 %, then be sure to show validation to your policy agent that your adolescent is a estimable student .

Incidentally, some companies may besides provide an car indemnity rebate if you maintain early policies with the fast, such as homeowners insurance. Allstate, for example, offers a 10 % car insurance discount rate and a 25 % homeowners policy discount when you bundle them together, so check to see if such discounts are available and applicable.

2. Pay Attention on the Road

In early words, be a safe driver. This should go without saying, but in today ’ s long time of increasing in-car distractions, this bears mentioning a much as potential. The more mindful you are, the more accidents or moving violations you ’ ll be able to avoid—events that raise your indemnity rates. Travelers offers safe driver discounts of between 10 % and 23 %, depending on your driving record.

For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums ( all else being equal ) .

3. Take a defensive Driving Course

sometimes insurance companies will provide a rebate for those who complete an approved defensive driving class. Drivers may besides be able to reduce the number of points they have on their licenses by taking a defensive repel, accident prevention, or early course .

Make certain to ask your agent/insurance company about this discount before you sign up for a course. After all, it ’ randomness authoritative that the effort being expended and the price of the course translate into a big enough indemnity savings. It ’ s besides important that the driver sign up for an accredited path. Every submit has its own rules about accredit defensive drive courses, and GEICO allows you to check what they are by express on its web site .

4. shop Around for Better Car Insurance Rates

If your policy is about to renew and the annual premium has gone up markedly, consider shopping round and obtaining quotes from competing companies. besides, every year or two it probably makes sense to obtain quotes from other companies, merely in case there is a lower rate out there .

Remember, brassy doesn ’ thymine always mean effective, and going with the lower-priced company international relations and security network ’ deoxythymidine monophosphate constantly the wisest decision. That ’ sulfur because the insurance company ’ s creditworthiness should besides be considered. After all, what good is a policy if the company doesn ’ t have the wherewithal to pay an policy claim ?

To run a check on a particular insurance company, consider checking out a web site that rates the fiscal strength of indemnity companies. The fiscal force of your insurance company is significant, but what your contract covers is besides important, thus make certain you understand it. Insure.com ’ s site bases its insurance caller ratings on data assembled by Standard and Poor ’ s.

In general, the fewer miles you drive your cable car per year, the lower your indemnity rate is probably to be, so always ask about a caller ’ s mileage thresholds .

5. Use Mass Transit

When you sign up for indemnity, the company will generally start with a questionnaire. Among the questions it asks might be the number of miles you drive the insured car per year .

If you use your vehicle to commute three hours to work every sidereal day, you will broadly pay more in indemnity premiums than person who entirely drives one mile a day. If potential, try to use mass transit to rack up fewer miles, keeping in mind that you will normally have to decrease your mileage importantly before incurring a discount. Ask your insurance company about the company ’ south unlike mileage thresholds, so your efforts won ’ deoxythymidine monophosphate be wasted .

besides, check with your supplier to see how many miles they have you presently driving, as most can give you an improved insurance quote .

6. Downsize Your vehicle

Buying a huge SUV may sound excite, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small ( but safe ) lower-cost commuter car. Some insurers will offer a discount if you buy a hybrid or an alternate fuel vehicle. Farmers, for example, offers a 5 % discount.

You can feel good about protecting the environment and save money on insurance at the same time. Find out the accurate rates to insure the different vehicles you ’ rhenium considering before making a purchase .

7. Increase Your Deductibles

When selecting car indemnity, you can typically choose a deductible, which is the sum of money you would have to pay before insurance picks up the yellow journalism in the event of an accident, larceny, or other types of damage to the vehicle. Depending on the policy, deductibles typically range from $ 250 to $ 1,000. The catch is that, by and large speaking, the lower the deductible, the higher the annual premium .

conversely, the higher the deductible, the lower the premium. Ask your agent how your bounty might be affected if you raised your deductible. It may make the annual bounty better by several share points and put some money back in your pouch, or the savings may be minimal. If you are reluctant to file smaller claims to avoid the hazard of pushing up your premium, raising the deductible may be a particularly sensible motivate .

8. Improve Your credit Rating

A driver ’ second record is obviously a big factor in determining car policy costs. After all, it makes smell that a driver who has been in a batch of accidents could cost the insurance company a lot of money. however, folks are sometimes surprised to find that insurance companies may besides consider citation ratings when determining indemnity premiums .

Why is your credit rating rat considered ? Michael Barry, senior vice president of the united states and promontory of media relations of the Insurance Information Institute, puts it this direction :

“Many insurers use credit-based insurance scores. It’s a contentious issue in certain statehouses…[but] insurers will say their studies show that if you’re responsible in your personal life, you’re less likely to file claims.”

Regardless of whether that ’ second true, be aware that your credit rat can be a component in figuring policy premiums, and do your farthermost to keep it high .

Tip

Your accredit card company or bank may offer free credit grudge access. You can check credit reports for free at AnnualCreditReport.com

9. Consider location When Estimating Car insurance Rates

It ’ s improbable that you will move to a different state plainly because it has lower cable car insurance rates. however, when planning a move, the potential change in your car indemnity rate is something you will want to factor into your budget .

10. Review Your coverage

Dropping certain types of coverage can be a slippery gradient. After all, cipher can predict if or when an accident will occur. however, if you are driving an extremely honest-to-god car that ’ s on its last leg, it may make sense ( depending on the price, your drive record, and other factors ) to drop collision or comprehensive coverage .

The rationality for this is that were the vehicle to be involved in an accident, the policy company would likely total the car. If the value of the car is only $ 1,000 and the collision coverage costs $ 500 per year, it may not make sense to buy it .

11. Get Discounts for Installing Anti-Theft Devices

Individuals have the electric potential to lower their annual premiums if they install anti-theft devices. GEICO, for model, offers a “ electric potential savings ” of 25 % if you have an anti-theft system in your car.

Your indemnity company should be able to tell you specifically which devices, when installed, can lower premiums. car alarms and LoJacks are two types of devices you might want to inquire about .

If your chief motivation for installing an anti-theft device is to lower your policy premium, consider whether the cost of adding the device will result in a significant enough savings to be worth the worry and expense .

12. Speak to Your agent

It ’ sulfur significant to note that there may be other cost savings to be had in addition to the ones described in this article. In fact, that ’ s why it much makes common sense to ask if there are any special discounts the ship’s company offers, such as for military personnel or employees of a certain party. You never know what kind of dismiss price might be available for your circumstances .

13. Switch to Pay-as-You-Go Insurance

If you ’ re a safe, low-mileage driver, a usage-based insurance plan ( besides known as black box indemnity ) may be available to you, such as Allstate ’ mho Drivewise,  Progressive ’ randomness Snapshot,  or State Farm ’ s Drive Safe & Save. By signing up for these programs, you let your insurance company track your driving through a telemetric device installed in your car in substitution for possible discounts based on how a lot you drive, when you drive, and how well you drive. If you drive fewer than 10,000 miles a year, you might be able to save money with this type of program .

14. Research Additional Discounts

Insurers provide a variety of discounts. Check for discounts such as these :

• Offers to let you pay the entire annual or six-month premium at once
• Agreements to receive e-bills and documentation
• Memberships in particular organizations or groups that offer discounts

Don ’ metric ton be swayed by a long number of potential discounts. Compare both discount rate and regular prices from multiple insurers .

15. Ditch Coverage You May not Need

You may not need all the bells and whistles in a policy, such as wayside aid and car rental coverage. Go over your insurance policy credit line by line and ask about removing anything you don ’ t need .

Tip

Check with your credit card company to see if they offer wayside aid benefits to cardholders, which might allow you to drop this feature from your car indemnity policy.

The Bottom Line

The price of car policy is probably to continue to rise in the future. however, there are many things you can do to reduce the stick. These 15 tips should get you driving in the right commission. Remember besides to compare the best car policy companies to find the one that fits your coverage needs and budget .