7 Tips for Saving Money on Auto Insurance

By Danielle Pietersen

Having auto insurance can save you a lot of money and protect you from financial ruin. In fact, in most state’s it’s a legal requirement. If you have a car, you need an insurance policy. Car insurance can be expensive though and rates can vary dramatically depending on a number of factors.

Keeping your car insurance rates low is a great way to save money each month. Getting the best insurance policy for the best price is actually quite simple. If you haven’t shopped around for a cheaper auto insurance policy before or made any of the necessary changes, then you should be able to save big on your insurance premiums by following these easy steps.

1. Get Car Insurance Quotes

Insurance companies all calculate how much their insurance coverage will cost you according to similar, but slightly different criteria. If you’re phoning around for auto insurance quotes, be sure to mention that you’re comparing quotes and ask for the best quote they can offer. They can often go a little lower than the first price they offer you.

If you are currently insured, don’t forget to phone your insurer and ask if they’d be willing to lower your rate. They are often willing to lower rates, especially if you haven’t claimed or been in a car accident.

2. Let The Internet Do The Work For You

There are some great ways you can use the internet to save on your auto insurance. They’re quick, easy, and effective.

Use The Internet To Get Quick Quotes

If you’re low on time, this is the step you should take. Getting individual quotes can be effective, but also time-consuming. Many online services will get you free car insurance quotes. They quickly and easily compare insurance premiums and coverage options from a variety of auto insurers based on your specific details and profile. It’s a quick and easy way to save on your insurance.

Use The Internet To Find Discounts

Insurance companies will often run promotions and offer car insurance discounts or vouchers. Swagbucks is a great site that finds and applies coupons and discounts for you when you’re shopping online. They offer rewards and cash back just for buying products you would have bought anyway. They often have great auto insurance deals, so it’s worth keeping an eye on their discounts and rewards.

3. Keep Your Driving Record Clean

Keeping a clean driving record can help lower your monthly payments. Car insurance companies look at a range of factors when determining the cost of your policy. You can have a high premium even if your record is clean. If your payment keeps going up, even though your record remains good, take it up with your insurer and ask for a discount.

4. Choose A Different Car

Insurers adjust the price of your policy based on the car you drive. Some cars are substantially more expensive to insure. If you’re looking to buy a new car, get insurance quotes before you do and find out which cars can be more cheaply insured.

5. Adjust Your Coverage

Most insurers offer different packages with varying coverage. Choosing the right one can save you money.

How Much Is Your Car Worth?

Auto insurance coverage can vary quite a lot. If your car is old or damaged, it might not be worth having comprehensive coverage. If your car is newer and expensive and you are in an accident, the cost of replacing or repairing the car will be high and difficult to cover without insurance. If your car is older though, it may be worth adjusting your insurance to cover more significant expenses.

Make Sure Your Insurance Still Meets Your Needs

This is not a decision to be taken lightly. Your insurer will be able to advise you as to the best insurance based on your needs. You might find that you only need liability coverage and bodily injury insurance. Liability insurance will not cover the cost of replacing your car, but does cover most other costs you might incur in an accident, like property damage and bodily injury liability, and the medical bills of other people in the accident.

6. Group Your Insurance Products

Most car insurance companies offer discounts if you purchase multiple insurance products from them. If you already have life insurance or another car that is insured, contact your insurance agent to see if they can offer you a discount. Remember to mention your other insurance products when you ask for a quote.

7. Does My Credit Score Matter?

In most states, the cost of your car insurance policy will be affected by your credit score. It’s only one of many factors and it’s not the most important one, but having a good credit score can help keep your insurance premiums lower.