Cheap car insurance guide: 10 ways to save

Car insurance doesn’t have to be expensive. You should shop around and compare car insurance prices, even if you like the coverage you currently have, and check for the best price every time. 

A big mistake many people make is to automatically renew their car insurance without looking for better deals.

Whether this is your first time buying car insurance or you’re shopping around for better options as your car insurance is expiring, we’re sharing with you 10 ways you can find additional savings on your car insurance rate.

1. Improve your credit score

Unless you live in certain states where it’s not allowed (California, Massachusetts, Michigan or Hawaii), insurance companies can check your credit score to decide on the policy they’ll offer you. The better credit score you have, the more likely you are to get a cheaper premium.

Before you sign up for a new policy, try to improve your credit score so that you can get a cheaper rate.

2. Be willing to pay a higher deductible

Your deductible is the amount of money you pay out-of-pocket toward an accident or a claim. In general, you’ll be able to decide on a higher or lower deductible when you sign up for a car insurance policy.

A higher deductible will mean a lower car insurance rate. If you’re comfortable with paying a little more if an accident happens, choose a higher deductible to get a cheaper premium.

3. Pay your car insurance policy upfront

Paying your six-month or annual car insurance policy upfront will offer great discounts. Most car insurance companies have specific discounts when paying everything in full. On top of the discount on the overall price, you’ll save on monthly fees.

It might be difficult to pay so much money at once (according to Nerdwallet, the average car insurance costs in the U.S. is $1,592 a year), but if you can afford it, it’s worth it.

4. Drive less miles (and take public transportation to work)

When you drive less, you reduce wear and tear on your car and can reduce your chances of a car accident.

Car insurance companies can offer a variety of discount options if you’re driving fewer miles. Most companies offer a low-mileage discount but some will offer pay-per-mile plans. These plans allow you to control what you pay based on how much you drive. 

The less you drive the less you pay.

5. Park in the driveway

Both parking in the garage and parking in the driveway will help you get a cheaper car insurance rate, but the latter is the better option. 

A driveway offers more safety than parking in the street and fewer damages to the paint job, which can come from the walls of your garage. To pay a cheaper car insurance premium, park your car in the driveway.

6. Take a defensive driving course

Drivers who have defensive driving skills are better equipped to avoid accidents on the road. A defensive driving course can benefit any driver and can also provide discounts on car insurance.

Defensive driving courses are generally inexpensive, they last between 4-6 hours and are easy to find in-person or online. They’re worth the time because they can get you up to 20% off your car insurance premium. 

7. Install alarms and other anti-theft devices

A comprehensive car insurance plan will help you replace or repair your car if it gets stolen or vandalized. If you’re choosing a comprehensive car insurance plan, consider installing an alarm or another anti-theft device. Car insurance companies will offer discounts for having them on your car.

You can always mention it to your car insurance company and ask for a discount even if you haven’t chosen a plan that covers theft.

8. Only pay for add-ons you actually need

You may not need a lot of the additional coverage that’s offered by your policy. Review all the add-ons one by one and evaluate if you’ll really need the extras.

Talk to your car insurance company and mention what you’ll like to exclude and see if this can lower your rate.

9. Use multi-car discounts

If you have more than one car that needs to be insured, try to get them insured at the same time. Car insurance companies will prefer you to choose them as your provider for all your cars, and this can mean big savings. They can give you what’s called a “bulk rate.” 

To qualify for multi-car discounts, all the drivers may need to be living at the same address and be related by blood or marriage.

10. Use multi-policy discounts

If you need multiple types of coverage, bundle your insurance policies and you will save money and time. Car insurance companies can offer multi-policy discounts when you bundle home insurance and car insurance. You may also be able to bundle your condo or renters insurance with your car insurance.

Bundling is also super convenient since you’ll be able to access your policies with a single log-in online. Your insurance agent will also be more familiar with all your policies and be able to help you at once when you have issues.

Why is carrying car insurance so important?

Car insurance offers you protection against financial loss due to a car accident or theft. As long as you pay your premium (the amount of money you pay for the policy), the car insurance company is contractually obligated to provide you with the coverage that is outlined in your policy.

Since all states have liability requirements, if you cause an accident, you will have to pay for bodily injuries and property damages. Your car insurance should cover these expenses so you don’t have to. If you get in a car accident and don’t have car insurance at the time, you will be held financially responsible for all the expenses and you could be in legal trouble if you’re unable to pay.

How to find cheap car insurance quotes

Shopping around and gathering different car insurance quotes is one of the best ways to find the cheapest rate and keep your costs low.

Insurance Guide Pro quickly puts together a list of all the best car insurance companies and the prices they can offer you. It’s 100% online or over the phone and only takes a few minutes. Get an instant quote and check your options for cheap car insurance rates today!