10 Easy Tips for Saving Money on Car Insurance

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Everyone has to have car insurance, but it can be a pain to find something that works for you and that you can afford. If you are tight on funds, or if you simply want to save some , here are ten easy tips for saving on your car insurance.

 

  1. Consider the Car – Before you go out and buy a new car, take some time to consider how the model, make, and year will affect your . In general, older cars are less expensive (because they often are less expensive to buy) to insure than newer cars. Flashier cars, like brightly painted sports cars are often more expensive to insure. Check out this site for a list of the cheapest cars to insure in 2011

 

  1. Consider your Primary Driver – If you can, 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 with teens who have their own cars, and their parents should be listed as the primary driver.

 

  1. Be Careful! – If you get into a wreck, even just a fender bender, you will likely see your insurance rate increase. Additionally, each speeding ticket that you get will also have an effect on your insurance rate.

 

  1. High Deductibles – Choosing a high deductible is one very easy way to lower your car insurance payment. So, if you feel comfortable doing this, go for it. It might not be the best idea if you drive long distances frequently or if you have teenage drivers.

 

  1. Bundle it Up – Bundling or combining your 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.

 

  1. Take a Safety Course – Check with your insurance provider to see if taking a safety course, either online or something like defensive driving, can lower your payment. It might waste a Saturday, but it will leave you with more money to spend on subsequent Saturdays.

 

  1. Reduce the Number of Payments – The less often you make a payment, the smaller the overall amount will be. Monthly payments, for example, often mean that you are paying more fees. Try to pay every three, six, or twelve months to reduce your overall cost. You will have to pay more when you do pay, but you will not pay as much every year.

 

  1. Remove the Extras – If your current car insurance policy has extras, like roadside assistance, towing, or car rental coverage, you can often remove them. It might be inconvenient the next time you have to change your own tire, but it will save you money. You should always be sure to review the details of your policy because most insurance agents are going to give you the standard policy, which might not be the cheapest.

 

  1. Ask about Discounts – You should make sure to ask your insurance agent about any discounts. Most agents are good about doing this for you, but it never hurts to ask. Discounts might include being over 50, being in the military, etc.

 

  1. Drive Less – Many times you will receive a discount on your car insurance if you drive less. For example, you if you can tell your agent you live within five to ten miles of your job, for example. You receive a lower rate because you are at a lower risk of getting into a wreck because you drive less often.

25 Responses to “10 Easy Tips for Saving Money on Car Insurance”

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  1. Elise @ Black Freelancer says:
    February 23, 2012 at 2:39 am

    I love my insurance provider. It’s AAA. I have a membership. I also have auto/renter’s/life through them. They drop my rate every 6 months usually. In cases where they didn’t drop my rate, I normally shop around before realizing that they have the best deal going…I get several discounts, including:

    * AAA Membership discount
    * Multi Car discount
    * Multi-line discount
    * Air Bag discount
    * Anti-lock brake discount
    * Automatic Alarm discount

    I’m sure I sound like a progressive commercial now. DISCOUNTS! :-)
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  2. World of Finance says:
    January 28, 2012 at 9:58 pm

    When I was younger I actually took a safety course offered through my auto insurance agency and it helped reduce the amount I had to pay. That discount stayed on my auto for a long time too.
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  3. CultOfMoney says:
    January 28, 2012 at 1:53 am

    One other aspect that has actually saved me some money is to talk to your agent or the phone rep about where your car is stored. If you tell them that at home it is always in the locked garage and at work you have an access controlled parking structure, you can save money too. Insurance companies know that a car parked on the street is more likely to get stolen, broken into, or run into. Especially in bad weather, keeping a car inside rather than on the street can save some big bucks.
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  4. Daniel Milstein says:
    January 28, 2012 at 12:15 am

    Good Share.I hope more people discover your blog because you really know what you’re talking about. Can’t wait to read more from you!

    Reply
  5. Marissa says:
    January 27, 2012 at 11:33 pm

    Also add- don’t drive red sports cars…. kidding, my horrible driving record has nothing to do with the color of my car.

    Great list!
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  6. Pam at MoneyTrail says:
    January 27, 2012 at 9:54 pm

    If your teen driver gets good grades and has good attendance, you can often get a “good student” discount. We just have to send the insurance company a copy of the school report card.
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  7. PFM says:
    January 27, 2012 at 1:50 pm

    You should add “shop different insurance companies”. From personal experience I’ve seen huge differences in pricing for the same coverage, literally hundreds of dollars. I make it a habit to check once a year to make sure I’m still getting a great rate.

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  8. Hank says:
    January 27, 2012 at 1:47 pm

    I called my car insurance company last year about raising my deductible from $500 to $1,000, but the amount of discount on my monthly insurance premium was very small. It did not make taking on the extra risk worth the discount I would have received. It would have taken me a decade of safe driving to pay off that $500 increase in deductible.
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