How can I save on car insurance?

Five easy ways to save on car insurance

 

Car insurance can be expensive because it covers both vehicle costs and injuries. Here is how to save without sacrificing having the right protection for you, your family, and your vehicles. 

1.

Shop around and get multiple quotes

Shopping around for car insurance quotes is a great way to find the best, most affordable coverage for you. Costs vary significantly from insurer to insurer, get fast free quotes here today comparing like coverages, limits, and deductibles. Many companies also offer discounts for getting your quote online.

2.

Consider increasing your deductible 

Consider increasing your deductible to help make your coverage more affordable. Some coverages like collision coverages come with a deductible, so select an amount that you can afford. Increasing your deductible from $500 to $1000 can save you up to 20% that coverage. You can save even more by not selecting collision and/or comprehensive coverage. If your vehicle is worth only a few thousand dollars then this might be a good option for you.

3.

Find carriers that use your actual driving behavior

Purchase with a carrier that monitors and rates using your actual driving behavior to determine your rate. Most large insurers have programs that use your actual driving behavior allowing you to save if you are have good driving habits like avoiding sudden braking and not speeding. The company will monitor your behavior through a mobile phone app or through a tracker that you install in your vehicle. There is usually an upfront discount for signing up for the program and then you can save an additional percentage on top of that.

4.

Find carriers that offer accident forgiveness

Select a company that offers accident forgiveness or a deductible reward. Accident forgiveness is a policy feature that allows you to get a free pass so that your policy rate isn’t impacted in case you have an accident in the future. Deductible rewards are like a piggy bank where the insurance company lowers the deductible you need to pay in the event of an accident. For example, if your deductible is $500, this feature would provide you with $50 or $100 every year to offset the deductible amount. After year 1 if the deductible reward is $50, you would only have to pay $450 if you have an accident. 

5.

Look at total costs, not just number of discounts

Comparing discounts across your quotes to see what company offers the best savings for you. But consider the total costs, more discounts doesn’t always translate to a lower overall rate if the pre-discount starting point was higher. 

 

Many companies offer discounts for:
 

  • Getting a quote online
     

  • Paying your policy premium in full up front at the beginning of the policy term (if you cancel, you will still be refunded for unused premium)
     

  • Setting up your policy for auto-pay and having your policy paid monthly through a bank account or a credit card
     

  • Having an anti-theft device such as an alarm system or VIN etchings on the windows
     

  • Bundling policies and purchasing both your car insurance and your home insurance (or other policies like life) from the same company
     

  • Driving safety courses
     

  • Good students can receive a discount on their policy. Having a teen driver can be expensive, but it’s a good opportunity to save for their hard work
     

  • Going paperless can offer you savings, it’s good for the environment and many insurance companies pass the savings to you