Get in the Driver’s Seat: 10 Clever Tricks to Saving Money on Car Insurance

man driving van

At least 13 percent of all U.S. drivers are driving around without car insurance. Are you part of this group? If so, it’s time to make a change and invest in car insurance. 

Think car insurance is too expensive? Think again. There are lots of ways that you can reduce the cost of your car insurance premiums. 

If you’ve been wondering how to save money on car insurance, keep reading. Listed below are ten clever tricks that will help you make sure you’re protected without draining your bank account.

Factors That Influence Car Insurance Costs

Before getting into the money-saving steps, it’s helpful to know what factors might be causing your car insurance rates to rise.

Some factors involved in determining your car insurance costs include:

  • Your age and gender — car insurance is typically more expensive for young men and older women
  • Your marital status — married people tend to get in fewer accidents than single people
  • Your location — people who live in high population neighborhoods or areas with high crime rates tend to have higher premiums
  • Your credit score — lower scores lead to higher premiums
  • Your car’s safety rating — a reliable car with lots of safety features may help you get lower premiums
  • The size of  your car — larger vehicles tend to be in fewer accidents, making insurance premiums lower on them than on smaller vehicles

Your driving record also plays a role in determining your car insurance premiums. If you have a history of speeding tickets, car accidents, or other issues, your premium is likely to be higher.

How to Save Money on Car Insurance

Nobody wants to spend more than they have to for car insurance. Here are ten tips to help you get the coverage you need while also saving money.

1. Consider Insurance Costs Before Buying a Car

If you’re currently buying a new car, think about the cost to insure it before you make a decision. Get insurance quotes from a few different insurance providers based on different types of cars.

Be sure to include as much information as you can about the year, make, model, and safety features. This will help you figure out which car is going to yield the cheapest insurance premiums.

2. Get Multiple Quotes

Even if you’re trying to insure a car you already own, it’s still a good idea to get multiple insurance quotes.

Most insurance providers make it easy for you to get a free quote online, so there’s no excuse not to spend a few minutes comparing your options. This will help you ensure you’re getting the best deal possible.

3. Choose a Plan with a Higher Deductible

If you choose an insurance plan with a higher deductible, you’ll have lower premiums.

The downside to this approach is that you will have to pay more out of pocket if you’re involved in an accident or need to file an insurance claim.

If you don’t mind doing this, though, a higher deductible plan can significantly lower your monthly payments.

4. Consider Semi-Annual Payments

Many insurance providers will give you a discount on your car insurance if you make semi-annual payments instead of monthly payments.

You’ll have to pay more money when you make these payments, of course. But, you’ll also save more money overall, and you won’t have to worry about making a payment every single month.

5. Look into Low Mileage Discounts

Some insurance providers will give you a discount if you drive less than the average person in your area. You might also qualify for this discount if you carpool to work and aren’t driving every single day.

6. Raise and Maintain Your Credit Score

As you know, your credit score impacts your car insurance premium. A low credit score can also hold you back in other ways. For example, your interest rates on your auto loan will be higher. 

When you take these facts into consideration, it makes sense to take steps to raise your credit score (and keep it high). You’ll be able to save money on car insurance, and you’ll save money in other areas of yourself, too.

7. Bundle Your Insurance

Many insurance providers, such as HH Insurance, sell more than only car insurance. Many of these providers also offer discounts if you buy multiple forms of insurance from them.

If you’re interested in saving money on car insurance, reach out to your home owner’s, renter’s, or life insurance provider. Ask if they offer a discount for bundling policies.

8. Drive Safely

If you have a history of being a reckless driver, it’s time to clean up your record. By taking some time to improve your driving record, you can lower your insurance premiums by quite a bit.

Some insurance providers actually give you a device to keep in your car that monitors your driving. After driving with that device for a few months and proving that you’re a safe driver you can see a significant reduction in the cost of your insurance.

9. Take a Defensive Driving Class

Another way to decrease your insurance costs is to take a defensive driving class. These classes can also provide you with information that will help you avoid accidents (and potential increases to your insurance premium) in the future.

10. Increase Your Security

Finally, consider increasing your car’s security features. Invest in an alarm, for example, or add a stolen vehicle recovery system. Simple changes like this will keep your car safe and decrease the cost of your car insurance.

Looking for More Money-Saving Tips?

Keeping these tips in mind can help you figure out how to save money on car insurance without sacrificing your coverage. 

Are you interested in learning other ways to save money on everyday expenses? If so, we’ve got you covered.

The Frugal Living section of our site is full of helpful information.

You’ll find articles here on everything from saving money on home repairs to natural remedies that will help reduce your health care costs. Check it out today!

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