Given that car expenses are such a high—and often overlooked—expense, it ’ south well worth the time and feat to try to reduce them a much as possible. Although you may not be able to shorten your commute or trade for a more fuel-efficient vehicle overnight, there ’ s one automotive expense on which you can—as ceaseless ads like to remind you—cut by hundreds of dollars a class in a matter of minutes .
Yes, we ’ rhenium talking about car insurance. And yes, you can about constantly reduce your car insurance beak if you know where to look .
hera ’ s how to do it.
1. Drive safely ( and slowly )
car policy is expensive enough in the normal course. But if you have accidents or moving violations, it can be laughably expensive. Avoiding accidents and driving more carefully are among the best ways to keep your car insurance at a minimal .
If you already have moving violations, avoid adding more to your record going forward .
even if you have one or more move violations in the holocene past, time can be your friend here. In most states, moving violations are dropped from your drive record after three years .
2. Buy an “ insurance-friendly ” car
The car you drive makes a big remainder in your car insurance premiums. There ’ mho not much you can do about that right now, but there ’ s batch that you can do when the clock comes to buy a fresh car. When you do, make certain that car is car insurance-friendly .
so avoid excessively expensive or clean cars .
At a minimum, the cost of your collision coverage will rise with the rate of the vehicle. But beyond costs, it ’ south besides authoritative to understand that certain vehicles carry higher policy charges. For case, any vehicle that could be at least loosely interpreted as a sports car will cost more for policy .
Related: Collision vs Comprehensive Car Insurance
future, choose cars with batch of safety features
In addition to the type of car, and the total you pay for it, you should besides make indisputable it has certain guard features. Those features can result in lower insurance premiums .
The best means to go about this is to get a tilt of condom equipment that will result in a lower premium from your policy ship’s company. once you do, be surely that any car you buy incorporates a many as potential. Some examples include : a security system, passenger and rear seat airbags, and anti-lock brakes .
3. Take a defensive drive course
If your drive record is below average, this can be a relatively flying way to lower your insurance agio. Some policy companies will offer a discount rate if you complete a defensive drive course. The one that you took in gamey school won ’ triiodothyronine do. It must be a path that you have completed recently .
There is one caveat here, however—make certain that the cost of the driving course doesn ’ thyroxine rub out any savings that you ’ ll catch from the deoxidize agio. It may hush be worth taking the course if it alone eats up the savings for the first year. After that, you ’ ll get the benefit of the dismiss for each year thereafter .
4. Take advantage of behavior-based discounts
good drivers help insurance companies make money. For that reason, companies like Liberty Mutual beat the contest by offering discounts to those with clean driving histories. That means that you ’ ll become rewarded for not having traffic violations etc, and you can save even more by using the RightTrack app to track your driving behavior .
Plus Liberty Mutual is adult on customization so that you ’ re entirely paying for coverage you need. All the discounts that they can possibly find, I ’ ve found aid bring that sum cost polish. With car policy, it can decidedly in truth adds up.
5. Yes, it can pay to shop around
many people stay with the like car policy aircraft carrier for years, but that ’ s not constantly the best course of action. Despite commitment incentives, most indemnity carriers lento raise your rates over many years because they count on customers being besides faineant to shop around .
You should compare car indemnity rates from competing companies at least every two years .
This is important because every year different companies choose to cut their prices in order to attract newly business. They may offer discounts that are identical attractive when compared to the company that has been handling your car indemnity for the past five years. Auto policy is actually a more competitive market than most of us know, so that does require some probe from time to clock .
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6. Move close to work
When you apply for car indemnity, one of the first questions you ’ ll be asked is how many miles your daily round-trip permute is. not amazingly, the shorter your change, the lower your car insurance premium will be. This makes sense because it means you ’ ll be on the road less and reduces the possibility of being involved in an accident .
For people who have light commutes, or are looking to shorten their change, there are policy companies tailoring their offer to you. Metromile is a commodity example – you ’ ll give entirely for miles drive. therefore if you ’ re not driving a lot, you won ’ t pay much. It ’ south crucial to note, however, that Metromile does entirely operate in eight states, as of now ( Washington, California, Oregon, Illinois, Arizona, Virginia, New Jersey, and Pennsylvania ) .
handily, most people look for a job that ’ s closer to home when changing jobs. The fact that car insurance will be less expensive as a solution should be an total bonus. The biggest discount will happen if you have a work-at-home agreement. This will mean that you will have virtually no commute, ensuring you will get the biggest rebate on commute .
7. Improve your recognition
right or wrong, indemnity companies take your credit score into account when pricing your car indemnity policy .
Although you probably won ’ triiodothyronine be able to call up your policy ship’s company and ask for a agio decrease good because your recognition score went up a few points, a better credit score is likely to result in at least a slight improvement in your premiums the following time you shop for cable car indemnity .
But let ’ s be clear—the biggest savings are likely to come if you go from being a inadequate credit gamble ( internet explorer, a 580 credit score ), to a good one ( 700 or better ). There are constantly numerous advantages to improving your credit, and the prospect of lower car indemnity is yet another .
8. Increase your deductible
I saved this one for last because it appears on virtually any tilt of ways to lower your car insurance agio. But even though it ’ s a cliché, it ’ mho inactive a very valid point .
In the event of a claim, your deductible is the amount of money you agree to pay out-of-pocket before insurance kicks in. For exemplar, if you have a $ 500 deductible and you have an accident requiring $ 2,000 in repair study, the indemnity company will only cut you a confirmation for $ 1,500 ( $ 2,000—your $ 500 deductible ) .
If you have a good drive record, with no claims in the final few years, you can credibly save up to $ 500 a year by increasing your deductible from $ 500 to $ 1,000. If you ’ re worried about having to pay that much in the event of an accident, just put an extra $ 500 into your emergency fund to cover it ( you should well have it as a result of your lower bounty ). You ’ ll save money for every year in which you don ’ t have a claim.
Read more: Best car insurance companies for 2022
One caveat here—if you have a history of accidents in which you have filed claims, do not raise your deductible. Since filing claims is fairly predictable, increasing your deductible will simply increase your exposure, potentially costing you more money than you save .
There are plenty of strategies that could easily lower your car insurance premium by several hundred dollars per year. Take into circumstance your circumstances and choose which works best for you .
Related: How much should I expect to pay for car insurance?