12 Most Effective Tips to Save on Auto Insurance

Auto Insurance, Car insurance, Insurance Tips, savings

Everyone wants to save money on their Auto Insurance.
The rates are generally based on a number of factors including location of the driver (residence), driver characteristics, and type of vehicle. But there are ways you can make sure you’re getting the best deal on your auto insurance.

Follow these tips and you could reduce the cost of your policy premium.

Auto Insurance Tips

  1. Get multiple quotes. Comparison shopping is the single most important thing you can do to get the best possible rates on auto insurance. Prices for the same coverage can vary greatly from one insurance company to another. It’s wise to review your insurance coverage and shop around before you decide on an insurance company.
  2. Raise your deductible. A deductible is an amount you will have to pay out of your own pocket before your insurance company will pay a claim. If you are comfortable paying a higher amount, you could save on your comprehensive and collision premiums by increasing your deductible. If you have an older car worth less than $1,000, consider dropping collision and comprehensive coverage completely.
  3. Bundle it up. Buying additional policy form same insurance carrier could save you money. Bundling or combining your insurance policies can reduce the overall payment. So, ask your insurance agent about bundling your homeowners (or renters) insurance with your car insurance. If you have more than one insurance company, you should consider moving all of your policies to one company. Sometimes the Multiplicity discount is higher than the premium of your Renters Insurance Policy. Too good to be true?? Well, it’s true. You will end up paying less and have extra insurance policy.
  4. Consider your Primary Driver.  The oldest family member should be listed as the primary driver. For example, if a wife is older than her husband, the couple might get a lower rate by listing her as the primary driver. The same thing goes for teens who have their own cars, and their parents should be listed as the primary driver.
  5. Don’t carry excess coverage. Optional coverages such as Car Rental Reimbursement and Roadside Assistance are beneficial when you have a claim. However, extended warranties, lease agreements, or AAA membership may already provide some of these coverages, so you may not need to include them in your auto insurance policy.
  1. Make insurance payments on time. Missing an auto insurance payment may result in a cancellation – and rates for a new policy could be higher. If you can’t pay the full amount due, ask whether a partial payment will keep your policy active.
  2. Pay premiums in one lump sum. Save service charges by paying your insurance premium all at once rather than in monthly or quarterly payments.
  3. Drive safely. You may be eligible for a discount on your policy if you have a clean driving record with no traffic violations for the past three years (some companies require five years). Even one violation can increase your premium, depending on the laws in your state.
  4. Drive a hybrid or a low-profile car. Some companies offer a discount if you drive a hybrid. If you’re not quite ready for a hybrid, your insurance will be lower if you drive a low-profile car (meaning a type of car not favored by car thieves) with high safety ratings. Ironically, it’s not flashy sports cars that are most popular with thieves; according to the National Insurance Crime Bureau, the 1995 Honda Civic is #1 on the list of cars targeted.
  5. Review your credit report. Payment history and credit history can be an important factor for auto insurance companies – so maintaining a good credit history and paying your bills on time could mean lower premium rates. Learn more about keeping your credit safe with Identity Theft Protection. The driver with better credit history should be listed first.

Bonus Tips

  1. Ask about discounts. Always ask if you are eligible discounts.  The following discounts could help you reduce your costs:
    • Low mileage/restricted mileage discounts. The less you drive, the more you save.
    • Safety feature discount. Automatic seat-belts, airbags, and anti-lock brakes can not only save your life but also save you money.
    • Anti-theft device discount. Ignition and fuel cut-off systems, alarms, hood and wheel locking devices, and window identification systems can protect your car and lower your premium.
    • Multi-car discount. Ensuring more than one car with the same company qualifies you for a discount with many companies.
    • Other discounts. Over age 55, nonsmoker, completion of a driver-training course, car-poolers, students away from home without a car, and good grades for students are other features that insurance companies may take into consideration.
  2. Make sure your auto insurance policy accurately reflects you. If it has been a while since you first got auto insurance, you may want to check the information your insurance company has about you. If you have moved to another neighborhood, installed an anti-theft device, drive fewer miles, or have gotten married – or if it has been at least three years since your last violation – you may be eligible for a premium reduction.

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Comments (9)

  • Jason M. Reply

    Great Article!

    June 3, 2014 at 12:29 pm
  • Seth Ashford Reply

    Yes I agree with Jason- great article! There are a lot of great tips on saving on car insurance. Asking about discounts is one of the best way to tap into your auto insurance’s resources. Thanks for sharing this!

    July 17, 2014 at 6:44 pm
  • Sekula Reply

    Every year you will notice discount on your car insurance. After 25 most likely you will have the best rate..

    January 8, 2015 at 11:42 pm
  • Sekula Reply

    It depends of the policy you have and when you are trying to get the quote.
    Every month the rate will be different because your credit score is different.

    The best savings is if you shop in advance when your credit score is excellent.

    January 8, 2015 at 11:49 pm
  • Simon Brooks Reply

    These are some great tips, figuring out what kind of auto insurance you need and how much you should spend on it can be quite confusing, especially for first time buyers. I like that you recommend bundling to your readers as well in tip number three. After all many insurance companies will offer lower rates for combining different insurance policies such as auto and life.

    January 9, 2017 at 10:41 pm
  • Harper Campbell Reply

    I am glad that you elaborated that when it comes to saving money on car insurance that one thing we can do is ask about different discounts that they might offer. It’s interesting to learn that there are different ones like multi-car, or a safety feature one that we might be able to get if they company we go through uses them. We will be talking to them real soon about this.

    August 31, 2017 at 10:15 am
  • Larry Weaver Reply

    Thanks for the tip to not carry excess coverage like roadside assistance. I just got a car but already have a bit of coverage, so I don’t need to consider anything I don’t need. Auto insurance that can provide discounts is also something I should look into.

    September 18, 2017 at 7:56 pm
  • sd Reply

    These are great tips.

    November 1, 2017 at 5:47 pm
  • Lane's Insurance Reply

    Thank you for providing such a valueable information. Keep posting.

    February 21, 2018 at 8:53 am

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