Top 3 Ways to Save on Auto Insurance

Are you paying too much for car insurance? I’m sure you’ve seen or heard ads from car insurance companies promising to help you save big. Often, they’ll mention bundling which is a great way to get a discount and save money. But there are so many other ways to save, too. 

Did you realize that sometimes even your occupation qualifies you for a discount? Almost every car insurance company offers a military discount, and some even offer discounted car insurance for firefighters, EMS workers, and teachers. 

Discounts are one of the best ways to save, but you can also pay less for car insurance by comparing quotes and switching to a company that offers your lower premiums. You can also tweak your coverage to appropriately cover your needs, which may help you save money. 

Read on for some of the top ways for you to save money on car insurance.

#1 – Discounts for Save on Your Car Insurance

rolled up money

Almost every driver is eligible for at least one discount and many can earn several discounts. Each car insurance company sets up its own discount system, and the discounts listed below aren’t recognized universally. 

Still, these are some of the most common car insurance discounts.

Bundling Discount

If you purchase a homeowners, renters, boat, or motorcycle policy from the same provider as your car insurance policy, you will probably be able to get a discount. This discount is one of the most common, and nearly every provider offers a percentage off of your premiums for bundling.

Good Driver Discount

Good drivers tend to continue being good drivers. If you haven’t gotten into an accident in three years, you may be able to get a good driver discount. Insurance premiums are based on the risk you present to an insurance provider. Good drivers are low risk, so they usually get a discount. 

Getting into accidents will affect your eligibility for a good driver discount, and so will filing claims and getting traffic tickets for things like speeding or running red lights.

Automatic Payments Discount

When you set up your payments to leave your account automatically each month, you’re less likely to miss a payment and more likely to stick with your current insurer, so they reward you with a discount.

Paperless Billing Discount

Paperless billing saves time and money for the insurance company because they don’t have to physically mail bills to your address, so they usually offer a small discount in return.

Low Mileage Discount

It makes sense that you’d pay less for car insurance if you drive fewer miles annually. The less time you spend on the road, the lower the risk that you’ll get in a crash and file a claim. 

Obviously, insurance companies like that and will incentivize that behavior.

Good Student Discount

Teen drivers pay the highest car insurance rates of any age group. Most car insurance companies will offer a significant discount for students who earn a 3.0 GPA or higher.

Driver’s Education Discount

A driver’s education discount is vital for teens because their car insurance rates are incredibly high, and they don’t usually qualify for many discounts. Find out which driver’s ed courses your car insurance company recognizes before investing in a class. 

If you’re going to take a class, you might as well get rewarded for it with a discount. You want a good driving instructor and program that will help your teen drive safely, but you’ll want it to be recognized by your insurance company so that you can get a discount for it.

Occupational Discounts

Military members can almost always earn a discount. Some car insurance companies offer reduced rates for first responders like firefighters, law enforcement, and EMTs. Teachers can sometimes find insurers who provide a discount for their occupation, as well.

#2 – Comparing Rates to Save

apples and oranges balancing

Every six months, you should make a quote comparison. As your personal factors change with time, your current car insurer may not be the best. Some car insurance companies are a better fit with specific demographics. 

You must realize that you may not be a good fit with your current provider anymore as your demographics change.

Switching Car Insurance Companies

It doesn’t take much time to compare rates, and if you find a reputable insurance company where you can save significantly, you should take advantage and switch providers. 

It’s crucial to compare identical coverage, though. Don’t compare different coverage levels between companies because you won’t get an accurate comparison. Make sure your deductibles and level of coverage are identical, otherwise you may leave yourself open to unnecessary financial trouble later.

Talking with Your Car Insurance Company

Car insurance companies don’t negotiate premiums. You won’t be able to talk them down to a lower rate, but what they can do is help you evaluate your coverage, find discounts you may have missed, or adjust your coverage levels to get your premiums more manageable.

#3 – Tweaking Your Policy to Save

Changing your policy can help you save a lot of money. Just remember that you’ll pay less when you lower your coverage, but you’ll also be eligible for fewer benefits.

Reducing Your Coverage

Reducing coverage will definitely help you save money on car insurance, but it’s vitally important not to leave yourself underinsured. 

Suppose your car is over 10 years old, and you’re paying more than 10 percent of your vehicle’s value annually for full coverage. In that case, you’ll be better off dropping full coverage and carrying a liability-only policy. 

Evaluate all the different types of coverage you have. If you have coverage that will pay for a rental car should your car be damaged, you could drop that option if you have a second vehicle or transportation option.

Increasing Your Deductible

A reasonably standard deductible is $500. If you raise that to a $1000 deductible, your monthly premiums will lower significantly. Just remember that you’ll need to be prepared to pay that deductible if you file a claim.

Switching to a Usage-Based Plan

Your car insurance provider may offer a different type of plan than standard insurance. If they don’t, you may want to consider switching insurers to one that does, especially if you don’t drive much annually. 

A usage-based insurance plan charges you based on your driving. Some plans are by-the-mile where you pay a base monthly fee, and then you pay a set amount per mile that you drive. 

Other usage-based plans use telematics devices to monitor your driving habits, and the price is based on that information.

Be Proactive to Save the Most

There are many different ways that you can save on car insurance. None of them take much time, but you do have to be proactive. Your insurance company isn’t likely to call you up and offer you a discount. 

It’s your responsibility to review your coverage and make sure you’re taking advantage of any available savings. Set aside an hour this weekend to look over your options. It shouldn’t take much longer than that, and the savings you can find are well worth the time. 

Melanie Musson
Melanie Musson writes and researches for BuyAutoInsurance.com. She’s passionate about helping people understand their auto insurance needs and find the best fit for coverage without overpaying.

 

 

 

 

 

Topics

A93820014BS Abu Dhabi accidents ACLU ACS Advertising Aha Mobile AI Airsage ALPR ALPR Cameras Android Apple Arizona Atlanta ATS Attorney Australia Auto Insurance average speed cameras Baltimore Belgium Beltronics Bikes Bribe Brooklyn Buy Buying California Camera Vans Canada carplay Carpool Cars CDOT cell phone Chicago City Council Class Action Cobra Colorado Connected Signals Connecticut construction contracts Corruption courtesty notice courtesy notice Crashes crime Crosswalk crowdsourcing Culver City Dangerous Intersections Dash Cam Data Database Des Moines Distracted Drivers DIY DOT download Drivers License Driving Instructor Drowsy Drunk Drivers Dubai DUI E-ZPass England Escort Europe Facial Recognition failure to stop Fake Cameras FasTrak Fighting Tickets Finance Fines Fleets Florida FOIA Ford France freedom of information act request Garmin Gatso Georgia Germany Ghost Glendale Google Google Maps Government GPS Angel GPS Navigation Guest Writer Hawaii Here Highway Robbery Highways HOV Cameras How To humor Illinois Injury Inrix Insignia Instagram Insurance Insurenet iOS IOT Iowa iphone iRadar Ireland Italy Iteris Joe Biden Laser Craft Law Suit Laws lawyer Left Turns legal Legislation License Plate Local London Long Beach Los Angeles Loud Exhaust Louisiana LPR Cameras Lyft Machine Learning Magellan Maine Maintenance Manhattan maps Marketing Maryland Massachusetts Microsoft Minnesota Missouri Mitac Mobile Ads Mobile Apps mobile speed zone Motorcycle MTA Navigation Navigon Navteq Nestor Netherlands New Jersey New Mexico New Orleans New York New Zealand News NHTSA Nokia NTSB Oahu Oakland Ohio Oregon Parking Parking Tickets Parks Peasy Pennsylvania Phantom Alert Philadelphia Phoenix Photo Notice photographs POI Points Poland police Politics Poll Portugal Privacy Progressive Web App Protest Radar Railroad Reckless Driving red light cameras RedFlex RedSpeed redzone refunds Removing rental car tickets Repairs research revenue Rhode Island Ridesharing Right Turns rolling right turns Russia Sacramento Safe Speed Safety Safety Cameras San Diego San Francisco San Jose Scam Schools Seat Belt Seattle secutity settlement Shutting Down signs Singapore Snitch Tickets solar Sound Cameras Spain speed cameras Speed Vans State Ban stop sign cameras Street View Students subpoena Subscription Supreme Court Surveillance Switzerland Taxi Technology TeleAtlas Telematics Tennessee Tesla Texas Texting Tickets Tips Toll Road TomTom Tracking Traffic traffic attorney Traffic Camera Traffic Lights Traffic Safety Traffic School traffic tickets Traffic.com Trapster Trial by Written Declaration Trinity Trucking trucks UAE Uber UK Unpaid Ticket Vehicle Occupancy Verra Mobility video Vigilant Violation Fines Violation Info Violation Speed Virginia Vision Zero Voters warning devices warning notice Washington Washington DC Waze Wikango Xerox Yellow Lights YouTube