To get cheap car insurance, compare quotes every 6-12 months, take advantage of all available discounts, and drop any unnecessary coverage types. Customers can save up to 35% with discounts, and insurers claim that drivers can save up to 20% by switching to a cheaper company.
1. Every 6-12 months, compare quotes.
Every time you need to renew your policy, shop around for quotes to ensure you’re still getting the best deal. This is especially important if you have recently received a citation or been in an accident, or if you have been with the same insurer for a long time. For example, the cheapest car insurance company when you were a teen may no longer be the cheapest option for you ten years later.
2. Take advantage of special offers.
Every major insurance company, among other things, offers a variety of discounts to reward customer loyalty, careful driving, and safe vehicles. Although some discounts are applied automatically, others may necessitate some effort on your part. For example, you can inquire with your insurer about paperless billing or paid-in-full discounts.
3. Take into account usage-based or pay-per-mile insurance.
Drivers can receive discounts for safe driving habits that are monitored by a plug-in device or a smartphone app with usage-based insurance. Depending on the insurer, you could save up to 50% if you’re a careful driver who’s comfortable being monitored.
Infrequent drivers can also benefit from pay-per-mile programmes, which charge a base rate plus a few cents per mile driven. Retirees, remote workers, and people who frequently use other modes of transportation stand to benefit the most from switching to a pay-per-mile policy.
4. Increase your insurance deductible.
Your deductible is the amount of money you must pay out of pocket when filing certain types of insurance claims, such as collision and comprehensive coverage claims. A higher deductible usually results in a lower premium, so raising your deductible can save you money. However, it is critical to select a reasonable amount that you can afford in the event of an unexpected claim.
5. Select your coverage limits wisely.
Almost every state mandates a certain level of car insurance coverage, which you must obtain in order to drive legally. Aside from that, you must meet any coverage requirements imposed by your lender or lessor, if applicable. Then you can decide what else you want to buy, if anything.
The best way to determine how much additional coverage to obtain is to weigh the costs and benefits of each type of optional insurance. If you can get by without a car for a few days or weeks, for example, rental reimbursement is probably unnecessary.
6. Concentrate on driving safely.
The single most important factor in determining your auto insurance premium is your driving record. Drivers who have a history of moving violations, at-fault accidents, and serious offences such as DUI or reckless driving cost more to insure because they are more likely to file a claim. As a result, developing good driving habits will benefit you in the long run. You can also inquire with your insurer about receiving a discount for taking driver’s education or defensive driving courses.
7. Raise your credit score.
Every major car insurance company considers a potential customer’s credit history when calculating premiums in states where it is legal. Auto insurance scores, which are based on the same information as regular credit scores, are commonly used by insurers. So, unless you live in Hawaii, Massachusetts, or California, raising your credit score can reduce your insurance premium by up to 67%.
8. Consider insurance costs when purchasing a vehicle.
In general, valuable cars, as well as powerful vehicles and cars that are more likely to be stolen, are more expensive to insure. So, if you want to save money in the long run, getting quotes for different vehicles before purchasing a new car is a good idea. This way, you’ll know how much you’ll have to pay for insurance.