Cheap Car Insurance
Every car owner knows that paying for insurance is just part of the cost of vehicle ownership. Some cheap car insurance companies focus more on the bare minimum bodily injury and property damage liability limits, while others put the focus on customer service and fast claims response.
As a responsible driver, you know that protecting your vehicle as well as those riding in your auto is the top priority. But how can you find the cheapest car insurance quote that fits into your monthly budget? That’s the challenge that every vehicle owner faces and must keep in mind when choosing an insurance company, and resist the temptation to just go with the cheapest car insurance option.
How can I get cheap car insurance?
Ah, the $64,000 question! Every driver wants the best value for their car insurance premium, and saving money should be a top priority. The balance between low rates and good service is a fine line that is not always easy to achieve.
There are a few things that drivers can do make sure your not overpaying for car insurance. Here are the top tips to keep rates low:
- Drive safe and avoid traffic tickets – Violations and at-fault accidents are no-no’s if you’re trying to pay less for car insurance.
- Maintain a high credit score – A credit rating over 720 is considered good and could be factored into your insurance rates.
- Avoid small claims – Most insurance companies reward drivers for staying claim-free, so if you can afford to pay small claims out-of-pocket, do so.
- Shop your coverage around – Smart shoppers know that comparing rate quotes can result in significant savings. Every year or so, check with other companies to make sure you still have the cheapest auto insurance rates.
How can I lower my current car insurance rates?
If you like your current car insurance company and prefer to stick with them, there are some things you can control that can result in cheaper rates:
- The year, make, and model of your vehicle – Driving an older, lower performance vehicle will be cheaper to insure than the newest high performance model.
- The coverages on your policy – Comprehensive and collision coverage is expensive, so if your vehicle is paid off and not worth a lot, consider dropping physical damage coverage to save money.
- Policy deductible level – Raising the policy deductibles can significantly lower the cost of car insurance. If you have sufficient savings, consider a higher deductible.
- Where you live – Areas with low crime rates or infrequent claims due to acts of nature generally have lower car insurance rates.
- The drivers on your policy – If you have a teenage driver, you will pay significantly higher premiums. Teen drivers have more accidents, so the cost to insure them is high.
- Your driving record – As stated before, avoiding violations and accidents is the single best way to keep auto insurance costs down.
There are additional ways to lower the cost of your current policy, but those listed above are the primary factors that you can control without having to switch insurance carriers to find lower rates.
Are you getting all your discounts?
Auto insurance companies offer many types of premium discounts based on how you use your vehicle, your personal risk factors, and other things like:
- Multi-policy discount – Combining your car insurance and homeowners or renters insurance with the same company can often cost less than having policies with two different companies
- Loyalty discount – Some companies reward customer loyalty with a discount that gets larger over time. Think of this as a customer retention bonus.
- Membership discounts – Many companies offer cheaper rates if you belong to a specific professional or occupational organization.
- Good student discounts – If you have a teen driver on your policy and they have good grades, mom and dad may earn lower insurance premiums.
- Filing paperwork online – Signing up for paperless document delivery can save much more than the cost of a few stamps. Save even more by signing up for automatic payments from your checking or savings account.
- Claim and accident-free – Policyholders who have infrequent claims can earn a discount on their premium, and not having any at-fault accidents over a certain time period could also save you money.
Each company offers different policy discounts, so check with your agent or company to see which discounts they offer that you may qualify for.
Start saving today
A recent survey found that 39% of car insurance customers have never compared rates to see if they could save money. Considering a price quote only takes a few minutes and the average savings is several hundred dollars, it may be time well spent.
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