16 ways to save money on your car insurance

Car insurance is a requirement for everyone, but it need not be expensive. You are aware of the easiest strategies to lower your vehicle insurance premiums, such as maintaining a clean driving record and monitoring your claims history.

car insurance

However, The Zebra looked through countless potential danger factors in order to find a few you might not be aware of. You might be able to add a little additional money to your monthly budget by keeping these in mind.

Here are 16 ways to save on your car insurance?

Obtain information on your vehicle and its main drivers
Before you buy or lease a car, do some research on how much car insurance costs
Research All Car Insurance Coverage Requirements
Use Mass Transit
Decide What Additional Coverage You Need
Save Money with Accident Forgiveness
Find out what kind of car insurance you might not need
Review Your Coverage
Update Your Policy Annually
Life Cycle Events Can Reduce the Cost of Auto Insurance
Decide on the deductible that is appropriate for you
Pay Your Bill in Full
Compare Car Insurance Companies and Costs
Consider Pay-Per-Mile Insurance
Take Advantage of Multi-Car Discounts
Ask Your Agent About Available Discounts

1. Obtain information on your vehicle and its main drivers.

Gathering all the data an insurance provider requires to provide you with the best rate is one method to start the process of looking for auto insurance. Begin by accumulating this fundamental data before you look for quotes: The make and model year of your vehicle.

It can be found on the registration for your car. VIN, or vehicle identification number. This can be found within the door pillar of the driver's side. A lane departure warning system, a frontal collision warning, and a backup camera are among the safety features of your car.

You employ anti-theft measures that may include steering wheel locks or electronic tracking systems. You should consider where you will park your car in addition to understanding the anti-theft measures. Think about the difference between leaving your automobile in your garage and leaving it outside your home or on the street.

A rough estimate of the annual mileage you log, together with your home and workplace addresses a list of the drivers, their ages, and any driving safety training they may have received. The legal driving age of all household members, the status of each driver's license (such as whether it is suspended or whether they have a learner's permit, for example), and whether or not other home members have their own insurance are all questions that many insurance companies ask.

This might assist the insurance agent in deciding who should be listed and take into account your estimate based on the state. An insurance provider can recommend the best coverage and prices for you and your lifestyle based on this information.

2. Before you buy or lease a car, do some research on how much car insurance costs

It can be alluring to swap in your practical family vehicle for a sports car when you purchase or lease a car. Just be aware that your insurance coverage and cost may be impacted by the type of vehicle you drive. Before you make a decision about your car purchase or lease, be careful to verify the price of insurance.

The type of car, repair expenses, safety record, and many other arbitrary factors can all have a significant impact on insurance rates.

3. Research All Car Insurance Coverage Requirements

When a financial institution owns the car you drive, coverage may become more complicated. If you're taking out a loan to buy a car, keep in mind that the lender may require you to have specific insurance that would otherwise be optional. One example is collision insurance, which pays for the repairs of damage to your car sustained in an accident.

Another example is comprehensive insurance, which often covers the cost of replacing a vehicle in the event of a fire, theft, or other non-accident-related damage. Find out what coverage you need and how much it will cost before you buy or lease.

4. Use Mass Transit

The insurance provider will often begin the application process with a questionnaire. It may inquire about your annual mileage on the insured vehicle, among other things. You will typically pay more in insurance premiums than someone who just drives one mile per day if you use your car to commute three hours to work every day.

5. Decide What Additional Coverage You Need

Purchasing more auto insurance might seem counterintuitive, but doing so could end up saving you money. It will be easier for you to make sure you are fully protected if you weigh your possibilities for additional coverage.

Think about how your finances might be impacted if you are in an accident and the damages or injuries are greater than what your insurance will pay for.

Talk to your insurance agent or carrier for advice on the right level of coverage for you while you get car insurance to help guard against the potential consequences of a theft or accident.
There are other coverage options as well, some of which could cost less. What if the car you have financing gets totaled?

Can you pay back the debt in full? In this situation, GAP insurance, which normally covers the gap between what your car is currently worth and what you owe on it, maybe something you want to think about. Once more, your insurance agent or carrier can assist in navigating the available options for you.

6. Save Money with Accident Forgiveness

One thing that often enables you to qualify for cheaper premiums is having a spotless driving record. But occasionally, even a careful driver might cause an accident. If your state offers Accident Forgiveness and Minor Violation Forgiveness, you might wish to look into the potential savings.

These extras could prevent you from experiencing a premium hike after your first covered accident or minor infraction. Other features, such as Decreasing the Deductible and a Total Loss Deductible Waiver, can also provide a sense of security.

Ask your insurance agent about these programs and whether your safe driving record qualifies you as a responsible driver. In some areas, certain carriers also provide a program that employs smartphone technology to record and assess the driving behavior of the drivers covered by your policy.

This program may save you money both during the first term of your policy and at renewal. If you're a safe driver and want to reduce the cost of your auto insurance, there is another choice to consider.

7. Find out what kind of car insurance you might not need

Consider removing collision and comprehensive coverage if you drive an older vehicle and want to save money. When calculating the cost of your premium, which includes collision and comprehensive coverage, you should take into account how much your older automobile is worth.

Make sure to base your cost-cutting efforts on all the elements that could help you decide if this is a smart choice for you while also taking into account your unique driving scenario. You can be paying rates for an older vehicle that are greater than its value.

Typically, keeping that portion of your coverage may not be cost-effective if the value of your car is less than 10 times the insurance rate.

8. Review Your Coverage

Dropping certain coverage options might be a steep slope. Nobody can actually anticipate when or when an accident will happen. However, it can make sense to forgo collision or comprehensive coverage if you have an extremely old car that is past repair (depending on the cost, your driving record, and other considerations).

The insurance company would probably total the car if the car were to get in an accident, which is why this is the case. It might not be worthwhile to purchase the car if its value is only $1,000 and the collision insurance costs $500 a year.

9. Update Your Policy Annually

Many customers only have auto insurance via a particular provider since they initially went with that provider and never gave switching a second thought. This makes sense. It's convenient and simple to keep things the same. And while sticking with one insurer might occasionally provide large reductions, doing so carelessly puts you at risk of overpaying for coverage.

Instead, to make sure you're getting a fair rate, it's a wonderful idea to compare quotes from other insurers every year or two. Online resources like U.S. Auto insurance quotes may be obtained quickly and easily with news partner QuoteWizard.

Every year, at the very least, you should communicate with your agent or insurance provider to let them know if your situation has changed and to see if there are any discounts or special offers you can take advantage of. Offer them the option to match or beat the competition with a policy that covers equivalent coverages if you have found lower costs at another firm.

10. Life Cycle Events Can Reduce the Cost of Auto Insurance

You can rely on life to occasionally bring about changes in your way of life and circumstances, so it's a good idea to think about how these adjustments may or may not affect the price of your auto insurance. For instance, did your child attend a distant school? You might look into the Student Away at School discount. Do you own a house? Consider a Multi-Policy Discount if you want to combine your policies for a discount.

These are a few of the situations that could minimize your auto insurance premium. It's a good idea to let your vehicle insurance agent know about a significant life event like this so you can talk about getting the greatest coverage for your current needs.

11. Decide on the deductible that is appropriate for you

You must spend a certain amount out of pocket before your auto insurance will begin to pay. The less you have to pay out of pocket in the event of an accident, the smaller the deductible. Choosing a greater deductible can result in reduced auto insurance costs.

You would be responsible for paying the first $1,000 of a covered loss before insurance began to pay, for instance, if you chose a $1,000 deductible and an accident resulted in $2,000 in damage.

12. Pay Your Bill in Full

The majority of auto insurance bills give you the choice between making a single, large payment or a series of smaller, monthly installments. You may be able to save money by paying the entire balance at once because, in some situations, making monthly payments may result in interest costs being added to each payment.

The finance charges might only be a few dollars, but they can build up over time. Paying their premiums with a credit card that offers cash-back benefits and then paying off the balance before interest is applied is another method policyholders can save a little money. It's crucial that you read the final clause of that statement once again.

The interest on your credit card will offset any benefits of using a rewards card if you don't pay off the balance in the billing month.

13. Compare Car Insurance Companies and Costs

There are options available for many things we purchase today. Many of us wouldn't consider investing in a good or service without first analyzing the cost, value, and reputation of the seller. When you get auto insurance, you might wish to use the same strategy.

After doing your research, discuss your needs with your insurance representative or carrier.

14. Consider Pay-Per-Mile Insurance

For those who don't drive far or frequently, a pay-per-mile or usage-based insurance coverage is a wonderful method to cut costs on auto insurance. You typically pay a basic rate and a modest fee for each mile you travel with usage-based coverage.

In order to track your mileage, the insurance provider will typically provide you a small gadget (known as a telematics device) that plugs into the OBD II port on your car. You should be aware that pay-per-mile insurance only makes sense if you travel a particular amount of miles annually, which is probably less than you might think possibly around 10,000 miles annually, depending on where you live.

The costs of a pay-as-you-go policy might add up quickly if you drive a lot. Some businesses cap the maximum daily charge, so if you take a long road trip you won't be overly fined.

15. Take Advantage of Multi-Car Discounts

A single car insurance estimate from an auto insurance provider could be more expensive per vehicle than a price for multiple drivers or vehicles from the same provider. For your business, insurance firms will provide what amounts to a bulk rate. They might provide you a deal in some cases if it means you'll bring in more of it.

To find out if you are eligible, ask your insurance representative. In general, more than one driver must dwell at the same address and be connected to the driver either by blood or by marriage. A discount may also be available to two unrelated individuals, but they often need to jointly own the vehicle.

ways to save money on your car insurance

You should prepare to spend more on insurance if one of your drivers is under the age of 25. However, you might be able to get a significant student discount on the coverage, which typically lasts until your child becomes 25, if their grades are a B average or higher or if they place in the top 20% of their class.

Showing evidence to your insurance agent that your kid is a good student will help you receive discounts that might range from 1% to 39%.
In addition, if you keep other policies with the company, like house insurance, some firms might offer you a discount on your auto insurance. Check to determine if such discounts are available and appropriate.

Allstate, for instance, offers a 10% vehicle insurance discount and a 25% house insurance discount when you bundle them together.

16. Ask Your Agent About Available Discounts

To see if you qualify for a lower vehicle insurance quote, it's a good idea to speak with your insurance agent at least once a year. If you purchase multiple types of insurance from the same provider, such as home and auto insurance, you may be eligible for savings.

Safe driving histories and additional safety equipment on a car, as previously indicated, may also result in reduced rates. To find the best coverage for you, inquire with your insurance agent about any new options or gaps in your current policy.

Now that you know some ways to reduce the cost of your auto insurance, you might wish to examine your coverage with your provider. You can find an agent here or request a quote from Travelers.

Other ways to save on car insurance?

Here are a few additional options for savings that are more particular, in addition to those five methods that almost everyone can utilize:

You are aware of how costly it may be to include a juvenile driver on your policy if you have one.
However, get in touch with your insurance provider frequently because the cost of coverage decreases as people age.
You should get married for numerous reasons, but if you need one to make you change your mind, consider this: Married people pay less for vehicle insurance than single people do.
Your annual auto insurance prices should decrease by roughly 6% after marriage.
such as your car? Keep it, and don't be hasty to switch to the newest hotness.
With every year your automobile gets older, the average national rate for auto insurance falls by roughly 3.4%.
Contrary to popular belief, employed individuals pay less for vehicle insurance than unemployed individuals.
Even though it's only 1%, there is a difference. Do you intend to make even more savings? Join the military.
Low insurance prices can also result from superior education or military service.
Never purchase a car without first determining what your new insurance premiums will be.
Trucks typically cost less to insure than cars do.