8 Ways to Lower Your Car Insurance Premium Costs

Oh, auto insurance. We don't like having to pay for it every month, but we also don't want to be without it when we really need it. Fortunately, there are numerous ways to obtain coverage without paying more than necessary in monthly premiums—and we've covered them all.

Want to make certain you're getting the best possible deal? Stay with us as we discuss the most effective ways to permanently reduce your auto insurance rates. Here are eight methods for lowering your car insurance premiums.

Top Ways to Lower Auto Insurance Costs:

Buy an Insurance Cost-Friendly Car

Insurance companies don’t care how cool your car is, but they do care how much of a risk it presents. As a result, the type of car you drive can have a direct impact on how much you pay each month. Cars with the lowest rates typically fall into the following categories:

They are cheap to repair or replace.
They are mostly driven by safe, experienced drivers.
They get high marks for safety features like anti-theft devices, airbags, and anti-lock braking systems.

The Honda CR-V, Subaru Outback, and Jeep Wrangler were three of the least expensive vehicles to insure in 2020, but your insurance company can provide you with a full list of options to suit your specific budget and lifestyle.

Ask About Auto Insurance Discounts

You're in luck if you haven't had any accidents or moving violations in a long time. Most major insurers offer discounts based on your driving history, vehicle features, policy options, and a variety of other factors. Do you want to make certain that you're saving as much as possible? When looking for the best provider, inquire about these tailored discounts, which can help lower rates even further.

Antitheft devices
College students who are away from home
Defensive driving courses
Driver education classes
Getting rid of paper
Long-term client
No accidents in 3 years
No moving violations in 3 years
Student drivers with good grades

Shop Around for a Better Rate

Car insurance rates vary greatly by company, state, and even neighborhood, which is why shopping around is one of the most effective ways to save money. Get at least three price quotes from different companies to ensure you're getting all possible discounts—and the best rate possible. To get the most out of your savings, do your comparison shopping once a year, when your policy is about to expire. It's a good idea to shop around for the best auto insurance rates online.

Increase Your Deductible

A deductible is the amount of money you must pay before your insurance policy kicks in. When you raise your deductible, you agree to pay more money up front in the event of a claim. In exchange, your provider offers a much lower monthly premium. However, there is one important caveat to keep in mind. You should be careful not to set your deductible too high. Increasing your deductible is a good way to save money right away, but if you get into an accident, you don't want to be forced to pay more out of pocket than you can afford.

Reduce Your Coverage

You can save money on car insurance by reducing coverage in two ways. First, you can reduce the policy limits. The second option is to carefully examine the details of your policy to see if you can eliminate unnecessary types of coverage:

Collision or comprehensive coverage: If you have an older car that is worth little more than the deductible, this coverage type may not be cost effective, especially since you will still be required to pay a deductible if you file a claim.
Rental car insurance: Are you no longer commuting to work? It may be advantageous for you to forego the coverage that includes a rental car while yours is being repaired.
Gap insurance: Also known as loan/lease gap coverage, this helps pay your auto loan if your car is totaled or stolen and you owe more than the car’s depreciated value. However, if your car loan is paid off or has a low balance, you can probably say goodbye to gap insurance.

When it comes to lowering your auto insurance coverage, make sure you are still in compliance with your state's insurance laws, as well as any coverage requirements imposed by your lender.

Drive Less—and Get Paid for It

Insurance companies are in the business of calculating risk, which they use to calculate your monthly premium. Some carriers may offer significant discounts if you drive fewer miles per year than the average. Low mileage discounts may also be available to drivers who carpool to work or to those who have recently retired and no longer have a daily commute. You may also want to consider usage-based insurance, which includes the following:

Pay-per-mile: This type of program calculates a rate based on the number of miles you drive, and the discount varies by company.
Pay-as-you-drive: These programs use electronically monitored technology to track your driving (via a mobile app or device that plugs into your car's diagnostic port), which is then used to calculate your customized rate.

The price cut you'll see on your rate varies by insurance company, but it can save you a lot of money—especially when combined with other discounts. You might also be curious about the factors that influence car insurance rates.

Improve Your Credit

According to research, the better you manage your credit, the fewer claims you'll make, which is why insurers take it into account when calculating your rate. Drivers with no credit, on the other hand, pay 67 percent more for car insurance than drivers with excellent credit.

You'll eventually see a reduction in your insurance premiums if you gradually improve your credit. To build a strong credit history, pay your bills on time, use credit only when absolutely necessary, and keep your credit balances as low as possible. You should also check your credit score on a regular basis to ensure that it is accurate—and report any potential errors.

Combine Your Insurance Policies

Most insurance companies will offer savings to their customers who buy two or more types of insurance—also known as “bundling”. Auto and home insurance are typically combined in a bundle. However, some insurers will give you a discount if you add boat, RV, motorcycle, renters, or life insurance to your auto policy. You may also receive a discount if you insure more than one vehicle with the same company.

Watch Your Premiums Drop With Affordable Car Insurance

Looking for the most affordable auto insurance rates? You've arrived at the right place. You can choose a plan and get coverage in minutes thanks to our quick and affordable online auto Insuroma quotes. Get yours now and join the thousands of other drivers who have reduced their monthly premiums!