Top 10 Ways to Save on Auto Insurance

If you are looking to save on auto insurance, you are not alone. Insurance can cost a lot of money. The amount of your bill is dependent upon which insurance company your policy is with, your age, driving record, where you live and what kind of vehicle you drive, as well as other factors.

Sometimes it can be frustrating to wonder where your premium dollars are going, especially if you have made few or no claims. You need to have insurance, though. It is required by law in the United States, and many other countries in the world.

While it is something you need, it is possible to save on auto insurance if you do a little research and are careful. Even though insurance companies are regulated by the insurance commissions of the states they conduct business in, the exact same coverage can cost different amounts depending on which insurer is selling it.

With that being said, here are ten things that can help you save a lot of money on your automobile insurance bill.

Top 10 Ways to Save On Auto Insurance

# 1: Shop Around

First off, shop around. This sounds like common sense, but believe it or not, many people buy automobile insurance from a company recommended by a friend, family member, or co-worker.

Many young drivers just stay with their parents’ insurance company. It may be convenient to do that, but do you really want to pay for that convenience or do you want to save on insurance?

Get at least three different quotes from three different companies. Do your own leg-work and do the calling or obtain the online quotes yourself.

Contact the actual insurance company that you want a quote from; simply ask “how do I save on auto insurance with your company? Do not rely upon one company to tell you what another company would charge.

Keep in mind, however, that price is not everything. Pick an insurance company with a good reputation, one that you feel you can feel comfortable with, and one that has a good A.M.Best rating, an indicator that the insurance company will be around to pay your claim when you need it.

# 2: Be a Safe Driver

Next, be a safe driver. It is essential to keep a clean driving record if you want to be considered for premium discounts, and sometimes even any coverage at all. A clean driving record means no accidents and no moving traffic violations. This is the best way to get a good price and save on insurance.

So if you’re a lead foot, ease off the gas a little bit and follow the law.

# 3: Drive the Right Automobile

Third, consider the vehicle that you drive carefully. Insurance rates are greatly affected by the type of vehicle being insured.

Do you really want to pay the higher premium to drive that high-performance sports car? If you do, and you can afford it, that’s great. Even if you drive that high-performance vehicle like a Saint, it is still more tempting to a car thief.

Also, new vehicles cost more to repair, so they typically cost more to insure. To save on insurance, consider driving a more sensible vehicle.

# 4: Monitor Your Credit Report

Keep an eye on your credit report. Make sure to keep your rating as high as possible.

An insurance company considers your credit history when determining your rate because there is usually a correlation between a person’s credit history and the risk that they will pursue a claim.

Paying your bills in a timely manner and avoiding unnecessary credit cards can help your credit rating.

# 5: Review Your Coverage

Next, take a look at your coverage. Some insurance coverages are required by all states, such as liability coverage and possibly uninsured/underinsured motorist coverage.

Look at the rest of the coverage; do you really need rental car reimbursement if you have another vehicle or acceptable public transportation available to you?

If you already have good health insurance, do you really need the first party Medical Payments coverage or Personal Injury Protection coverage? Remove anything that you can consider superfluous (and is not required by law).

# 6: Consider Removing Collision Coverage for Older Vehicles

Consider removing the collision and comprehensive (other than collision) coverage from your policy if you drive an older vehicle that is worth less than a couple thousand dollars.

Otherwise, you will most likely pay more for the coverage than you will ever collect. Vehicles worth little money can be considered a total loss even with seemingly minimal damage.

It is easy to find out what your vehicle is worth by checking the Kelly Blue Book, or with a local dealership or even your bank. Then make your decision accordingly.

# 7: Review Your Deductibles

If it makes sense to keep the collision and comprehensive coverage on your vehicle (especially if you have a lien-holder), take a look at the deductibles on those coverages. The higher the deductible is, the lower the cost of the insurance will be. Just be sure that you will be able to handle that deductible if you ever need to.

# 8: Drive Less

Don’t drive so much. Hear us out. This might seem like a difficult one, but it really isn’t. Car pool with friends or co-workers, use public transportation, or simply run all of your errands on the same day.

Not only will you save on your insurance if your mileage is lower than the insurance company expects, but you will save gas money too.

# 9: Check for Safety Discounts

Look into available discounts for safety or security features on your automobile. Most insurance companies will offer discounts on vehicles equipped with such features as air bags, anti-lock braking systems, automatic restraints (seat belts), and alarms and tracking systems. Such features reduce the risk of claims, both for vehicle theft or damage as well as injuries to the occupants of the vehicle.

# 10: Ask About Additional Discounts

Finally, ask about any other discounts that the company might offer. If you are working off the company’s website and it is not clear what you might qualify for, make a telephone call to the company. There might be something that didn’t make it onto the website. To save on auto insurance, you need to do the leg-work; it will pay off.

Final Thoughts

There you have it folks. These are 10 ways to save on auto insurance. None of this is rocket science; however, if you follow these 10 simple tips there is no doubt in my mind you will save some money on your insurance policy.

What are your thoughts? What did we leave out? Which tip is your favorite and why? Leave a comment below to let me know what you think.

10 thoughts on “Top 10 Ways to Save on Auto Insurance

  1. Anastazja

    I appreciated your article on ways to save on auto insurance. We are now the proud owners of 2 classic cars…. a 1978 280z and a 1967 Chrysler New Yorker, both in great condition. Your ten ways to save were a help. 

    We still have collision on the two old cars, which really is not necessary because we don’t drive them very much. I did want to add one more item to your list. If you have a car which is 20-years or older, you can buy specialty insurance which tends to be much cheaper than normal car insurance. 

    I believe the mileage needs to be under 5,000 annually, but I am not sure. This would fall under your tip of driving less. At any rate, your article was thorough and practical. Thanks.

    Reply
  2. Kell

    This is really the best way to save on auto insurance. And the list you gave is quite awesome, especially when you made mention of being a safe driver, and to consider the vehicle we drive carefully.

    When we do this, it helps us save money and get a good price on auto insurance. I have learnt so much and will put this into consideration when thinking on ways to save on auto insurance.

    Reply
  3. BlueMoon UniqueFashion

    These ten tips on how to save on auto insurance are beneficial. I already adhere to some, such as “shop around,” because I’m very careful and like to have more options. Also, I drive a family car and have a good driving record. It is only tough for me to reduce my car driving because of family responsibilities. I have three children, and I take them somewhere every day. 

    Reply
  4. Hyder Khan

    This is very sound and sage advice. Insurance is a necessary evil. We shouldn’t have to pay for superfluous coverage that we either will never use, or which is unnecessary. Of course, if the unexpected happens, there’s no denying the fact that all of the sudden, insurance seems like a godsend. But apart from that, I think each of the above points are spot on. (Not sure how practical “driving less” would be as a solution for the purposes of keeping your premiums down, but I suppose that watching our mileage can help, albeit it’s not the only factor. )

    Thank you!

    Reply
  5. CJ Greene

    This is an awesome article with a number of great ideas I’d not thought of before. Do you have any recommended insurance companies? I know when I got my first car they gave me this thing to plug in for a few months. I don’t remember everything it did. It may have just recorded the times that I was driving/the frequency that I drove, or it may have recorded speed as well, I don’t recall. Anyway, if it didn’t report anything negative after a few months, I got a discount on my insurance, which was cool! They also said they couldn’t use the information to increase my rates, so there was little risk in using it. Or so they claimed. Who knows?

    Reply
  6. Stratos K

    I couldn’t agree more with the points that you say. Especially the first one is one that is very common. Our parents are in company A so it is like an unwritten social rule that we have to follow to the same company also. Like there are no other respectable companies out there. I think this was happening in the past because it was not as easy to get information from various companies to get the best one. Now with internet and the easiness of communication competition is more fierce and its easier for us to compare between them.

    Reply
  7. asmadi

    Wow! Thank you very much for this great post!
    I am exactly like your first point, where I chose car insurance only because of my father’s insurance agent. And to be honest, I never shop around. Maybe this is the most crucial mistake I faced so the price of the premium I paid was quite large. But before month 3 (premium due), I will try to do what you suggest. Hopefully the price of the premium that I paid can decrease.

    However, which one do you think is better, if I buy insurance premiums from an agent / marketing field or directly from a website online? In terms of price, which is cheaper?

    Once again, thank you for this useful post!

    Reply
    1. admin Post author

      It just depends. You definitely want to shop around. I would try a local agent and perhaps two different online quotes and see what you come up with. When you compare, make sure you are comparing the exact same coverage with each agent/company. 

      Reply
  8. MrBiizy

    Wow! This is superb, indeed a money saver on auto insurance. Thank you for sharing the top ten ways to save money on auto insurance. I must admit that I am ignorant of many of this ways you have shared simply because I am not familiar with insuring an automobile. Indeed this is very helpful to me. It has opened my eyes and has given me a good sense towards practical ways to save while insuring my automobile. I am sure this guide will help many.

    Reply
  9. Julianne

    It is good to see such an article as this aiming at explaining to us all on the best ways to go about insuring our vehicles. It is true that many people prefer to just pay the cost but for someone like me whose sole aim is to cut cost, this is perfect for me to see here. At least, I was able to know some basic tips that can help avoid wasting excessively on insuring. Worthwhile post here. Thank you for sharing

    Reply

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