You’re tired of paying through the nose for car insurance every month, aren’t you? It seems like no matter how safe a driver you are, those premiums just keep going up and up. The good news is, there are some tricks to finding cheap car insurance if you know where to look. In this article, we’ll show you a few simple ways to lower your rates and stop overpaying
. You may be able to save hundreds per year on car insurance with just a few hours of work. The insurance companies don’t make it easy, but we’ve done the research for you and will walk you through step-by-step how to compare policies, determine the right coverage levels for your needs, and find hidden discounts to unlock major savings. By the end of this, you’ll wonder why you didn’t look for cheaper premiums sooner. Ready to put more money back in your pocket each month? Let’s get started.
Understanding Car Insurance Basics
To get cheap car insurance, you first need to understand the basics. The three main types are liability, collision, and comprehensive.
Liability insurance covers injuries and damage to other vehicles or property you cause in an accident. It’s required in most states. Collision insurance covers damage to your own car in an accident, even if you’re at fault. Comprehensive insurance covers non-accident damage like theft, vandalism or natural disasters.
The more coverage you buy, the higher your premium. So only get what you need. If your car is old, you may not need collision or comprehensive.
Your location and driving record matter
Where you live and your driving history significantly impact your rate. If you have a clean record in a town with little traffic and few accidents, you’ll pay less. Multiple tickets or accidents will increase your premium.
Compare quotes from different companies
Shop around at different insurance providers to compare quotes. Quotes can vary by hundreds per year for the same coverage. Look at highly rated major carriers as well as smaller local companies. Check independent broker websites that compare multiple companies at once.
With some understanding of the basics, comparing quotes, and only buying the coverage you truly need, you can find cheap and affordable car insurance. A little research can save you a lot of money over time.
Factors That Impact Your Car Insurance Rates
The cost of insuring your vehicle depends on several factors. Here are the main things that determine your car insurance rates:
Your location
Where you live plays a big role. Insurance companies factor in the risk of accidents, theft, vandalism, and natural disasters in your area to calculate premiums. Urban areas typically have higher rates than rural ones.
Your coverage
The more coverage you choose, the higher your premium. Get only the coverage you need. Liability coverage is required in most states, while comprehensive and collision are optional. Consider dropping comprehensive and collision coverage for older vehicles.
Your driving record
Insurers view safe drivers as less risky to insure. Minor violations like speeding tickets can increase your rates by up to 22% for three years. Major violations like DUIs may increase premiums by up to 82% for five years. Check your motor vehicle report to ensure it’s accurate before shopping for insurance.
Your vehicle
Rates are higher for vehicles that cost more to insure like high-performance cars. You’ll pay less to insure an economy sedan. Vehicle make, model, year, safety ratings and anti-theft systems also affect premiums.
Your credit score
In most states, insurance companies consider your credit score. People with good credit tend to file fewer claims. Check your credit report to make sure there are no errors before shopping for insurance. You can improve your score over time by paying bills on time and keeping low balances on credit cards.
By understanding these key factors, you can make choices that lower your risk profile and get cheap car insurance. Compare quotes from different companies—you could save hundreds per year!
Ways to Keep Your Driving Record Clean
To keep your car insurance rates low, maintaining a clean driving record is key. Here are some tips to help keep violations and accidents off your record:
Obey the rules of the road
Following basic traffic laws like speed limits, stop signs and red lights will minimize your chances of getting a ticket. Even minor violations like seat belt or cell phone tickets can increase your rates, so buckle up and put the phone away while driving.
Drive cautiously
Defensive driving techniques like leaving extra distance between you and other vehicles, anticipating dangerous situations before they arise and avoiding aggressive driving can help prevent accidents. Take your time and be patient – rushing while driving often leads to mistakes.
Limit distractions
Anything that takes your attention from the road – eating, drinking, adjusting the radio or navigation system can be a distraction. Try to set up your vehicle before you start driving so you can keep your eyes on the road. If you need to do something that requires your full attention, pull over in a safe spot.
Consider a dash cam
Having a dash cam in your vehicle provides an extra layer of protection in case of an accident. The footage from the camera can prove your innocence or provide evidence to help determine fault. Some insurance companies even offer discounts for installing a dash cam.
Maintaining a stellar driving record may require some effort and discipline, but the potential savings on your car insurance premiums will be well worth it. Safer driving habits and an unblemished record can keep your rates low for years to come.
Choosing the Right Car Insurance Coverage
Choosing the right car insurance coverage is key to getting the most bang for your buck. The bare minimum coverage required by law likely won’t cut it in the event of an accident. Consider your needs and what level of risk you’re comfortable with to determine the right policy for you.
Look into getting comprehensive and collision coverage to protect against damage from events like theft, vandalism, or weather events in addition to accidents. While premiums will be higher, the peace of mind and coverage can be worth it. If your vehicle is older or has a low resale value, dropping these coverages may make sense to lower your bill.
Think about your health and liability needs as well. Higher coverage limits for bodily injury and property damage mean more financial protection in case of a serious accident you’re at fault for. Medical payments coverage helps pay for injuries to you and your passengers.
Consider an umbrella policy for even higher liability limits once you’ve maximized the coverage offered by your auto policy. An extra policy that provides coverage over and above what you have for homeowner’s or auto insurance.
Think about bundling with homeowner’s or renter’s insurance from the same company. Most insurers offer discounts for bundling multiple policies together. You can save up to 20% or more on your premiums.
If you have a good driving record, look into safe driver discounts. Most companies offer significant savings for those with a clean record. You may also get discounts for taking a defensive driving course.
Review the specifics of different policies and coverage options. Compare quotes from multiple companies to find a policy with solid coverage at an affordable rate. With some time and research, you can find cheap car insurance tailored to your needs.
How can I lower my car insurance rates?
Lowering your car insurance rates comes down to a few key factors within your control. By making some adjustments, you can save hundreds per year on premiums.
Shop around at different companies
Don’t just stick with the same insurance company out of habit. Compare quotes from different providers to find the best deal. You may be able to cut your bill by up to $500 per year, simply by switching to another reputable insurer.
Raise your deductibles
If you increase your deductibles, your premiums will decrease. For every $500 you raise your deductible, you can lower your collision and comprehensive coverage costs by up to 30%. Just make sure you have enough in savings to cover the higher deductible in case of an accident.
Drop unnecessary coverage
Do you really need roadside assistance and rental car coverage? Dropping extra coverage you don’t require can reduce your premiums. Only keep what’s necessary for your needs.
Improve your credit score
In many states, your credit score affects your car insurance rates. Work on improving your score by paying bills on time and reducing debt. The higher your score, the lower your premiums.
Bundle multiple policies
Buy home insurance, life insurance or other policies from the same company as your auto insurance. Bundling multiple types of coverage together earns you a discount, often 10% or more off each policy.
Following these tips and making a few adjustments to your coverage can add up to major savings on your car insurance premiums over time. Shop around, boost your deductibles, drop unnecessary coverage and improve your credit score. You’ll be rewarded with a lower rate and more money in your pocket each month.
Cheap car insurance full coverage
To find cheap full coverage car insurance, you’ll need to shop around at different companies and compare quotes. Here are some of the best ways to lower your rates:
Check independent agent websites
Independent insurance agents represent multiple companies and can provide quotes from different insurers in one place. Sites like NerdWallet, TheZebra, and CarInsurance.com allow you to enter your information once and receive quotes from companies like Progressive, GEICO, State Farm and more. Compare the quotes side by side to find the most affordable option.
Look for discounts
Almost all major insurers offer a variety of discounts to help lower your premiums. Things like bundling your auto policy with homeowners or life insurance, installing an anti-theft device, taking a safe driving course, and having a good driving record with no accidents or tickets in the past 3-5 years. Ask about any discounts you may be eligible for.
Increase your deductibles
If you can afford to pay higher deductibles in the event of a claim, raising them can significantly reduce your monthly bill. Going from a $500 deductible to $1,000 can save you up to 15% on premiums. Just make sure the deductibles are still at an amount you can comfortably pay if needed.
Consider dropping full coverage on older vehicles
Once a vehicle is 8-10 years old or has over 100,000 miles, the cost of full coverage insurance often outweighs the value of the vehicle. Dropping comprehensive and collision coverage can save hundreds per year in premiums. You’ll still need liability coverage to drive legally, but you won’t have the expensive coverage for damage to your own vehicle.
###Compare “no-frills” companies
Insurers like The General, Titan, and Direct Auto specialize in cheap liability coverage. They don’t spend big on marketing and keep costs low. While you may sacrifice some service or a fancy mobile app, you can potentially save 30-50% compared to larger companies. If price is your top priority, get a quote from a few bare-bones insurers.
Finding affordable car insurance
Finding affordable car insurance requires some work, but the savings can be well worth it. Here are some tips to lower your rates:
Compare quotes from different companies
Don’t just go with the first company you find. Compare quotes from at least 3-5 major insurers to see which offers the best deal for your needs. Some of the cheapest options are Geico, Progressive, and State Farm. Check their websites for quotes or use an online quote comparison tool.
Increase your deductibles
The higher your deductibles, the lower your premiums will be. If you can afford to pay more out of pocket in the event of a claim, increasing your deductibles to $500 or $1000 can lower your rates by up to 40%. Just make sure the deductibles are still affordable for you.
Drop unnecessary coverage
You may be paying for extra coverage you don’t need. For example, if your vehicle is older, you may want to drop collision and comprehensive coverage. Only keep liability and uninsured motorist coverage which is required. This can save you hundreds per year.
Ask about discounts
Inquire about any discounts you may be eligible for like safe driver, student, anti-theft device or bundling with other policies. Every dollar in discounts is money saved. Some insurers offer up to 30% off for bundling home and auto.
Consider usage-based insurance
If you drive fewer miles, usage-based or pay-per-mile insurance where you pay based on how much you drive may save you money. Companies like Metromile and Milewise offer this option. You can save up to 40-60% compared to traditional insurance.
Following these tips and shopping around at different companies can help you find an affordable policy for your needs. With some time and patience, you’ll be saving hundreds on your car insurance in no time.
Taking Advantage of Discounts
Taking advantage of all the discounts offered by insurance companies is one of the best ways to find cheap car insurance. Many providers offer reductions for bundling multiple policies, safe driving, students, anti-theft devices and more.
•Bundle your auto policy with other policies like home or life insurance. Most companies will give you a lower rate for bundling multiple policies together. The more you bundle, the more you save.
•Ask about safe driver discounts if you have a clean driving record. Most insurers offer lower rates for drivers who haven’t had any accidents or violations in the past 3 to 5 years. Some companies even give discounts for taking a safe driving course.
•See if your insurance offers a discount for anti-theft devices like alarms, satellite trackers or ignition kill switches installed in your vehicle. These precautions make your car less likely to be stolen so companies see you as a lower risk.
•Check for student discounts if you have a teen driver on your policy or if you’re a student yourself. Good student discounts can save up to 25% for those with a B average or higher.
•Pay your premium in full upfront rather than monthly installments. Most insurers charge slightly less for those who pay the entire 6-month or yearly premium at once. If you can afford it, the savings can add up.
•Ask about occupation discounts for teachers, engineers or those in other professions. Some companies offer lower rates for those with stable, low-risk jobs.
•See if you qualify for any group discounts through your employer, alumni association or other organizations you belong to. Many offer exclusive deals with certain insurance providers.
Taking a few minutes to inquire about discounts with different companies and compare quotes could save you hundreds on your annual auto insurance premiums. A little research and negotiation goes a long way when searching for cheap car insurance. The more you save on your policy, the more money stays in your wallet.
Which is the cheapest type of insurance?
The cheapest type of car insurance is typically liability-only coverage. This provides the minimum coverage required by law, covering damage you cause to other vehicles. It does not provide coverage for your own vehicle damage or medical bills.
Liability insurance is the cheapest because it offers the least amount of coverage. You’re only paying for coverage against claims from other drivers in an accident you cause. Liability plans typically start around $30-$50 per month.
Compared to liability only, full coverage car insurance provides comprehensive and collision coverage for your own vehicle in addition to the coverage for other drivers. This full coverage is more expensive, usually starting around $100-$200 per month, depending on factors like your age, vehicle make and model, and driving record.
If you own an older vehicle that isn’t worth much, liability only could save you hundreds per year compared to full coverage. However, if you have car payments or want to protect your investment, full coverage may be worth the extra cost.
You’ll need to weigh the pros and cons based on your own situation. Think about the value of your vehicle, how much of a loss you can afford in an accident, and how much risk you’re willing to take. You can also consider raising your deductibles to lower the premiums for full coverage.
The bottom line is liability only is the most basic and budget-friendly option if you want the cheapest car insurance. But for most drivers, balancing cost and coverage means full coverage is the smarter choice. Shop around at different companies and compare quotes to find an affordable policy that gives you the protection you need.
Adjusting Your Deductibles
Adjusting your deductibles is one of the simplest ways to lower your car insurance premiums. The deductible is the amount you pay out of pocket for a claim before your insurance kicks in. Raising your deductibles means you’ll pay more up front for any claims, but you’ll pay less overall in lower monthly premiums.
For example, increasing your deductibles from $500 to $1,000 could lower your collision and comprehensive coverage premiums by 15 to 30 percent. Going up to a $2,000 deductible may save you 40 percent or more. The higher your deductibles, the more you stand to save.
• Collision coverage pays for damages to your vehicle in an accident you cause. Raising your collision deductible can significantly lower this portion of your premium.
• Comprehensive coverage pays for non-accident damages like theft, vandalism or natural disasters. Increasing your comprehensive deductible can also result in substantial savings.
• Think about how much you can afford to pay out of pocket in the event of a claim. Only raise your deductibles to an amount you’re comfortable with. You don’t want to be caught off guard if you do need to file a claim.
• Make sure your deductibles are in line with the value of your vehicle. If you have an older car with little cash value, high deductibles may not make sense and won’t save you much. For newer, more valuable vehicles, higher deductibles typically yield the biggest premium reductions.
• You can adjust your deductibles at any time to find the right balance of savings and coverage for your needs and budget. Shop around with different insurance companies as well as they may offer different deductible options and corresponding discounts. Finding cheap car insurance is often a matter of making the most of the discounts and savings available to you. Adjusting your deductibles is an easy place to start.
Comparing Rates From Multiple Providers
Comparing rates from multiple insurance providers is key to finding cheap car insurance. Here are some tips to get the best deal:
Shop around at different companies.
Don’t just go with the same company your parents use or the one with the catchiest commercials. Compare quotes from at least three to five major insurers like Geico, Progressive, State Farm and Allstate. Check independent agent sites too like NerdWallet, The Zebra or CarInsurance.com where you can compare quotes from 15+ companies at once. The more you compare, the more you could save.
Check for discounts.
Ask each company which discounts you may qualify for, like safe driver, student, bundling with home insurance or anti-theft device. The more discounts the better! You could save 10-40% or more off your premium.
Consider raising your deductibles.
The higher your deductibles, the lower your premiums. Raise your deductibles to $500 or $1,000 which could lower your premium by up to 30%. Just make sure you can afford the deductibles if you have a claim.
Drop unnecessary coverage.
Only pay for the coverage you truly need. For example, if your car is old, you may not need collision or comprehensive coverage. Dropping these could save you hundreds per year.
Review rates annually.
Car insurance rates change often, so shop around again every 6-12 months to make sure you still have a competitive price. You may find an even lower rate from another company or qualify for more discounts. Saving a little here and a little there on your car insurance can really add up over time. Staying on top of the rates and making a few simple changes could help you save hundreds each year.
Maintaining Good Credit
To get the best rates on car insurance, maintaining a good credit score is key. Insurance companies view people with good credit as less risky to insure, since they are more likely to pay premiums on time. Here are some tips to keep your score in good shape:
Check your credit report regularly. Request a free credit report each year from AnnualCreditReport.com and check for any errors. Dispute them with the credit bureaus to get them corrected asap. Inaccurate information on your report can negatively impact your score.
Pay your bills on time. Payment history makes up 35% of your credit score. Set up automatic payments or payment reminders to avoid late or missed payments. Even being 30 days late on a credit card bill can drop your score significantly.
Keep low credit card balances. Your credit utilization ratio – the amount you owe divided by your credit limits – makes up 30% of your score. Keep balances well under 30% of your limits. Pay down high balances whenever possible.
Limit new applications. Applying for too many new credit cards or loans in a short time can be a red flag for lenders and hurt your score. Only apply for new credit when needed.
Check your score and report again before shopping for car insurance. Knowing your score will allow you to check if you qualify for the best rates. If needed, you’ll have time to take further steps to improve your score, like paying down balances, before starting the search for new coverage.
Maintaining a good score and credit report is an ongoing process, but the efforts are well worth it when it comes to saving hundreds per year on car insurance premiums. Staying on top of it and making small improvements over time can really pay off.
FAQs About Finding Cheap Car Insurance
FAQs About Finding Cheap Car Insurance
How can I lower my car insurance premiums?
There are several ways to lower your car insurance rates:
- Increase your deductibles. The higher your deductibles, the lower your premiums. Raise your collision and comprehensive deductibles to at least $500 or $1,000.
- Reduce coverage on older vehicles. Don’t pay for comprehensive and collision coverage on vehicles over 10 years old. Only carry liability coverage.
- Consolidate policies. Bundle your auto insurance with your home or life insurance policy. Bundling multiple policies together can save you up to 30% off of car insurance.
- Improve your credit score. In many states, insurance companies consider your credit score when determining your premiums. Improve your score to lower your rates.
- Drive safer vehicles. Buy vehicles with high safety ratings and anti-theft devices. Safer, less expensive vehicles cost less to insure.
- Increase liability limits. Increase your bodily injury liability limits to at least $100,000. This lowers your risk to insurers and can save you up to 5% off premiums.
- Reduce coverage for part-time drivers. Don’t pay for full coverage for part-time drivers like college students away at school. Only carry coverage for when they actually drive the vehicle.
What are the cheapest car insurance companies?
Some of the most affordable car insurance companies include:
- GEICO – GEICO is one of the largest insurers and typically offers very competitive rates, especially for drivers with good credit and clean records.
- State Farm – State Farm is the largest auto insurer in the U.S. and is a good option for cheap rates, especially if you bundle multiple policies.
- Progressive – Progressive is known for offering affordable rates, particularly for high-risk drivers with violations or accidents on their records.
- USAA – USAA typically offers the lowest rates, but only serves military members, veterans and their families.
- Erie Insurance – Erie Insurance provides very affordable rates, especially in the Mid-Atlantic and Midwestern U.S.
- The Hartford – The Hartford is a reputable insurer that frequently offers policyholders competitive pricing and various discounts.
Compare quotes from multiple companies to find the cheapest, most affordable rates for your needs and situation. Rates can vary significantly between insurers based on their underwriting criteria and discounts offered.
Conclusion
So there you have it, some solid tips to help you score cheap car insurance. Shop around, compare quotes from different companies, look for discounts you may qualify for, consider raising your deductibles, and improve your credit score. Making some simple changes can add up to big savings each month and each year on your premiums. You owe it to yourself and your wallet to put in a little effort upfront. Why pay more than you have to? Take action today and start seeing what kind of deals are out there for you. With some patience and persistence, you’ll be well on your way to finding affordable coverage for your vehicle so you can spend your hard-earned money on the things that really matter to you.