How Can I Save Money On My Car Insurance

Last Revised on December 26, 2010

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There are so many ways to save money on your car insurance. A lot of times when we talking about saving on car insurance, people think about companies like Geico and Progressive. But the truth of the matter is you can’t trust what they say; the thing is they are trying to sell themselves as the cheapest car insurance company. In reality, all car insurance companies have to follow state laws and regulations in regard to auto vehicle registrations and other factors when adding up the monthly car insurance premiums. However, there are ways to cut down your car insurance bills from a small dollar amount to a couple of hundred bucks every year.

Tips on how to reduce car insurance payments

It is not always easy when you are thinking about reducing cost and expenses, but it is said that car insurance is often the most expensive monthly bills for many people behind their home mortgage or rent. Just like other bills, car insurance rates will depend on how often you drive car and what kind is it. The price for car insurance goes up when your car is newer, expensive one and you drive it often, such as to work.

The magic lies in deductibles. Most people know what that is, but in case you didn’t – deductibles are the amount of money you pay before your insurance company pays if anything happens pertaining to your auto vehicle. Higher the deductibles, less money you pay for car insurance. It is very easy, all you have to do is call your insurance agent and let them know that you would like to raise the deductible to amount you are convenient or capable of paying. Deductibles are the amount you pay only when the accident type of things happens. This should help lower your rates as much as 30 percent.

Reduce over all car insurance payments: one of the best way to lower car insurance premium is to pay monthly insurance premium for 6 months or a year at once. Most car insurance companies will happily allow you to do that; in return, you get to save money by no having to pay any add-on fees that usually comes with paying on a monthly basis.

Get the auto safety gears and features installed for your car. One of the main things insurance agency look at when deciding how much you will be paying to them is the car safety mechanisms. They help lower the car insurance rates. They include air bags, automatic seat belts, anti-lock brakes, anti theft devices and daytime running lights.

Are you over-covered? This is when your car insurance coverage is far more than what you realistically need. Car insurance is very important, but lets not forget it is not realistic to get covered and pay for every single thing that can happen. If that was the case, you shouldn’t have bothered to buy a car to start with. So don’t get coverage you don’t really need. Assess your car’s value and get rid of insurance coverages that are just there to cost your more on monthly premiums. I think the extra road side assistance is one of them. It is far more cheaper to pay an automotive tow truck once than to pay every single month to your insurance company.

Don’t you already have a health medical insurance? If so, get the minimum healthy body injury coverage with car insurance. Else you are paying twice for something and often they don’t cover enough when the misfortune struck.

Stay insured and stay with once insurance for longer period. Staying insured ensures that you get lower rates and puts you in lower risk categories. Also instead of signing up for a monthly car insurance premiums, go for 6 months or a year based car insurance policy. And keep your driving record clean. That’s one of the best ways to reduce car insurance rate easily.

Get multiple discounts – if you have more than one car or if you own a house, get the insurances for all of them from the same insurer. They will happily give you discounts on your car insurance for that. There are other discounts available too. It’s all a matter of you asking your insurance agent about it. Teen drivers who only goes to college and drives rarely and a senior over 50 years of age can easily get a cheaper car insurance deals.

Shop around, don’t pause at first stop while looking for car insurance. Insurance agents will happily try to beat the price quote that others gave you. There are lot more ways to save money on car insurance, we will keep adding them to this how to this list. Get free car insurance quotes before purchasing them. This is probably one of the biggest mistakes made by new car insurance buyer such as teenagers. You don’t have to buy car insurance right away after talking with the agent for the first time; you simply ask for a free, no commitment quote. Almost every auto insurance company provides free quotes. After you get quotes from many companies or agents, just compare them and buy the cheapest one.

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4 Responses to “How Can I Save Money On My Car Insurance”

  1. Geico or AllState Says:
    August 23rd, 2009 at 8:16 pm

    There are so many different ways to save on car insurance but I will list the couple of best tips that many people forget that they are important in determining how much their car insurance will cost:
    credit report – yes your credit report does affect your insurance rates as well. Your work place discount – your employer company might have different partnerships and an insurance company can be one of them. Check to see if they provide employee discounts. Auto clubs can be another way for a minor discount. Finally, the most important thing I have noticed after shopping around for car insurance coverages for all the cars I have owned in the past few decades I noticed that auto insurance policy renewal contract doesn’t necessarily give you a discount rate. Many people think they will automatically quality for a loyal membership discount, but many insurance companies don’t put provide that unless you ask. So sometimes it is just better to search for another insurance companies after the premium policy period expires.

  2. Car Insurance Monthly Says:
    September 3rd, 2009 at 3:27 am

    I think I will try to recommend this post to my friends and family, cuz it’s really helpful.

  3. insurance agent Says:
    October 20th, 2009 at 9:39 pm

    Stay away from big auto insurance companies like Geico, AllState and Progressive. Why? Because these companies spend a lot of money of advertisements and at the end they end up charging more to customer to balance up the money they spend advertising on tv, radio and internet. I kind of like esurance though. It’s a small online car insurance company, but since they keep their cost low they are able to give out insurance policies for cheaper price. Whenever possible, speak with small agents like me because we can give you better deals that will lower you monthly premiums.

  4. How do car insurance companies compensate for injuries? Says:
    November 24th, 2010 at 10:07 pm

    I recently settled a lawsuit dealing with an automobile accident. My car insurance medical coverage exhausted over ten thousand dollars, and I still had bills to pay so my primary picked it up. But now that it is settled I think I have to pay my primary back. My lawyer said he got me full coverage from my auto insurance dealing with my injuries for the rest of my life in the settlement. My question is…. is there a way instead of me paying back my primary insurance company, by just having them forward the bills to the auto insurance since they will be paying my bills from now on? Or am I going to have to pay out of pocket. Thanks in advance!

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