51 Ways To Save Money on Car Insurance

1. Choose a Higher Collision Deductible - Collision coverage pays for repairs to your car if it collides with another vehicle or object regardless of who is responsible.  The deductible is the amount you have to pay before the insurance company pays.  Many consumers are choosing higher deductibles than $500 because it costs less and they can afford to pay $750 or $1000 if needed.  BE CAREFUL: If you find yourself in an accident and need the car to get to work but can’t afford the deductible, you could have much bigger problems!

2. Shop For Insurance Ahead of Time – Many insurance companies offer “early signing” discounts that save you money if you buy a new policy a week or more before it goes into effect.  In addition to this potential discount, the more time you have to shop around, the more quotes you can get and the greater the opportunity to find the most affordable one.  Android and iPhone owners should consider using Quote Assistant to get the most accurate quotes in the least amount of time.

3. Maintain Continuous Coverage - Many insurance companies give you a better rate depending on how long you have been insured without any gaps in coverage.  Sometimes a coverage gap of only one day can cause you to get the same price as someone buying their very first insurance policy.  If you sell your car, consider maintaining your policy or being added as a driver to a relative’s policy until you are ready to purchase your next policy.

4. Compare Rates From Many Companies - Despite what they want you to think, no insurance company has the cheapest price for every driver.  Each company uses different rating criteria so if your friend saved the most with State Farm, it doesn’t mean you will too.  The only way to find the best price for you is to get as many quotes as possible.  Quote Assistant makes it easy by compiling a long list of the most popular carriers in your area and lets you call each one direct for a quote with the push of a button.  Since you can save your quotes and use your mobile phone, Quote Assistant allows you to get a quote any time you have a few moments to spare and compare all the prices later on.  BE CAREFUL: Many online websites claim to offer lots of “comparison quotes” but all they really do is take your private information and sell it to anyone willing to pay.  Ever heard of identity theft?

5. Pay Your Bill on Time - Many insurance companies will tack on extra charges or remove certain discounts based on your payment history.  If you are late even one time after 30 years of payments, they might jack up your price.

6. Lower Your Uninsured Motorist Property Damage Coverage - Uninsured motorist property damage pays for damage to your vehicle if you are the victim of a car accident caused by someone without insurance or without enough insurance.  Since you would be unable to collect more from this coverage than the value of the vehicles you drive, it may save some money to reduce this coverage.  BE CAREFUL: Depending on your state laws and insurance carrier, reducing this coverage may not be a wise or available option.  Make sure to discuss this type of change with an insurance professional licensed in your state and ask them about any potential downsides.

 

7. Improve Your Credit Rating - It’s probably not a surprise that most auto insurance carriers base their rates to some degree on credit history.  Whether you think that’s fair or not, better credit gets you cheaper insurance so do what you can to improve your rating.  BE CAREFUL: Although some insurance companies promote that they do not use credit to determine your insurance premium, that does not mean they’ll have the best price for everyone with bad credit.  If you have bad credit, it’s even more important to take the time to get many quotes and find yourself the most affordable insurance.

8. Pay For Your Entire Policy Upfront - Since they won’t have to mail bills every month and it’s less likely your policy will be cancelled, most insurance companies offer a cheaper price if you’re willing to pay the entire 6 or 12 month premium at once.  Even if you have to use a credit card, the difference in premium could be substantial and you won’t have to worry about your policy lapsing.  BE CAREFUL: Even if your insurer does not offer a discount for paying in full, they may include installment charges with each monthly  bill that could be avoided by paying up front.

9. Raise Your Liability Limits Before Shopping - If your assets or income potential have increased and you are considering raising your liability limits on your next policy, consider making the change on your current policy prior to shopping with new insurance carriers.  Some carriers give a cheaper rate to customers who already had higher limits on their policy.  This is because customers with higher liability limits tend to be more loyal, safer drivers, and have less payment issues.

10. Be Honest About How You Use Your Car - During the quoting process, many shoppers are tempted to “fudge” information about how they use the vehicles and could actually cause the price to be higher.  For example most people believe a vehicle rated for “pleasure” usage is cheaper than one for “work” use.  While this may be true sometimes it is not always the case.  Furthermore, misrepresentation of information during the insurance purchasing process can result in the denial of a claim when you really need the coverage.  You won’t feel as clever about saving a few dollars when there’s a bill in your name for $100,000.

11. Have a Child – Screaming children in the back seat of your car might not seem like a safety feature, but since parents do tend to be a bit more responsible on the road, many insurance carriers give discounts to customers who have children.  Although I doubt it would be a wise financial move to have a child to save on insurance, if your current carrier is unaware that you currently have children, there may be an additional discount available.  This is especially true if your insurer is rating you with a marital status of single.

12. Buy a Safe Vehicle – Although the person behind the wheel plays the biggest role in the safety of a vehicle, insurers do give cheaper prices to vehicles that perform the best in handling and crash testing.  There’s an added benefit as well, it could save your life.

 

13. Set Up Automatic Payments - Because it involves less paperwork and processing, many insurers give discounts for setting up your policy on automatic billing.  If available, the size of this discount could also depend on the format of automatic billing, with direct debiting from a checking account generally being the preferred method.  Even if there is not a discount, the comfort of knowing your insurance is always paid is well worth it.

14. Combine Policies in the Same Household – If there are more than one auto insurance policies in your house, you may save money by combining them into one.  Doing the opposite may also be beneficial.  It could be cheaper to have a relative currently on your policy move onto their own policy.  It would be best to speak with a licensed representative of your insurance company before making any moves like this.  BE CAREFUL: Some unethical insurance salespeople might try to convince you to split up a policy in order to make more commission even if it is not to your advantage.  Make sure to ask lots of questions and identify any potential dangers to either combining or splitting up policies.

15. Cancel Your Old Policy When You Switch Carriers – Don’t assume if you buy a new policy and stop paying on your old one that everything will be okay.  Because insurance law can require insurers to continue coverage for a certain time after you stopped paying, they may actually bill you for this time period.  Cover all your bases and cancel the old policy at the exact time the new policy begins.

16. Drop Your Rental Car Coverage – Rental coverage pays for a rental vehicle while your vehicle is being repaired for a covered loss.  If you could hitch a ride or walk to work for a month or two, or if you have extra vehicles to use or borrow you may cancel this coverage and save money.  BE CAREFUL: Only drop your rental coverage if you truly would be fine without a rental car for a couple months.  If your vehicle is the only way for you to get to work and support your family, buy rental coverage!

17. Install an Alarm – Having a car alarm will almost always save you a few bucks on your auto insurance.  Don’t expect a huge discount, but it should reduce your comprehensive coverage.

 

18. Buy a Home - People who own homes, in general, tend to be better clients for insurance companies so they often give cheaper prices to homeowners.  I wouldn’t go out and make an offer today, but if you are a homeowner and your current carrier is unaware of it, give them a call!

19. Buy the Sedan (vs. the coupe) – All Honda Civics are not created equal.  Some insurance companies charge different prices depending on the submodel of your vehicle.  This means if you’re considering the added cost of an upgraded model, don’t forget to find out from the insurance company if it will cost you any more for the leather seats.

20. Don’t Buy an Assigned Risk Policy (if you can help it) – If you have several accidents or tickets on your driving record, you may have no choice but to get a policy from your state’s “assigned risk” program.  Each state sets up the program for drivers who are not eligible for regular insurance policies.  Since the assigned risk is usually much more expensive than other policies, make sure you get denied from ALL the major carriers before resorting to assigned risk, even if you get a bit frustrated after being declined by the first few.

21. Choose a Higher Comprehensive Deductible – Comprehensive coverage pays for damage to your vehicle caused by anything but your standard car accident (theft, vandalism, weather, etc.).  Raising your deductible means you’ll have to pay more out of pocket if there is a loss, but you’ll pay less for the coverage.  BE CAREFUL: Raising comprehensive deductibles does not usually save large amounts of money, but if a tree falls on your car and you can’t afford the deductible you’ll have a much larger problem.

22. Don’t Get Traffic Tickets – Need I say more?

23. Ask About Occupational Discounts – Depending on what you do for a living, you may be entitled to a discount on your policy.  Many companies give discounts to teachers, police officers, firemen, bankers, you name it.  If you don’t ask, you won’t find out.  Did you change jobs recently?  Call your insurer and ask them.

24. Buy Multiple Policies From the Same Company – Most auto insurance companies that offer other types of insurance give a discount for having more than one policy with them.  In addition to convenience, there is an added benefit to keeping all your policies with the same agent because they will be more aware of any potential gaps between the policies.  BE CAREFUL: Don’t count an auto insurer out just because they do not sell homeowner’s insurance.  Splitting your insurance between two companies could save more money even without the multi-policy discount.

25. Don’t Let Anyone Borrow Your Car – If a friend borrows your car and gets in an accident, your prices will go up.  If you’re going to pay more for insurance, shouldn’t it be your fault, not someone else’s?

26. Drop Your Towing Coverage – For most policies, towing coverage provides many of the same benefits as AAA, like changing a tire, jumpstarting the battery, or locking your keys in the car.  If you already have AAA or something else providing these benefits, why pay twice?  As an alternative, perhaps you should consider dropping AAA and using your insurance policy’s towing coverage if you need help.  BE CAREFUL: Every insurance policy and company is different, adding or removing towing coverage could be a very bad decision.  Speak with a state licensed company representative about the potential risks before making any changes to your policy.

27. Install a Recovery Device – Many insurance companies will offer a discount if your vehicle is equipped with a vehicle recovery device like LoJack or OnStar.  This discount usually comes off your comprehensive coverage and may not offset the cost of installing such a device.  If insurance savings is your motivation, get an idea of the potential cost savings prior to paying for installation.

28. Move to a Safer and Less Congested Area – Insurance prices are based off the zip code you live in and can make significant differences in the cost of your insurance.  Generally speaking, the less congested and safer an area, the cheaper the insurance.  Although it will cost you more for the home or apartment, the nicer neighborhood will probably save you money on car insurance!  BE CAREFUL: Using your friend’s address to save on insurance when that is not where the vehicle is regularly parked is a form of insurance fraud and could result in denial of a claim.

29. Park in a Garage – If you park your vehicle in a garage or carport, make sure your insurance company knows about it.  Many offer a discount off your comprehensive coverage based on the decreased likelihood of theft or weather damage.

30. Re-Run Your Credit – As mentioned above, many insurance companies use your credit rating to rate your insurance policy.  If you purchased your insurance policy several years ago and you think your credit has improved, you may be able to contact your insurance carrier and see if they will re-run your rating.  BE CAREFUL: If your insurance carrier re-runs your credit and it comes back worse, you’ll likely be facing a rate increase!

31. Get Married – Since married individuals have lower frequencies of auto insurance claims, being married can often save you some money.  This means if you became married since the time your insurance policy went into effect and your insurer is unaware of this, you should let them know.  There may also be other insurance-related considerations based on this change in your life they will need to address.  BE CAREFUL: Getting married simply to save money on car insurance may be a decision you regret very soon, and for the rest of your life!

32. Don’t Get in Car Accidents – This one probably goes without saying, but here’s a related tip.  If you are in a car accident that is completely someone else’s fault and their insurance adjuster agrees, it may be better to go through the other company for all your damages.  BE CAREFUL: Insurance claims can be tricky, so it’s a good idea to be in contact with your carrier if you get a bad feeling about any part of the claims process.

33. Take Driver’s Education – This one’s for the teens.  If you have the opportunity to take a recognized driver’s education program, regardless of whether it’s required by the state for your license you should take it.  It will most likely save money on insurance and with a teen driver, you’ll need every discount you can get!

 

34. Choose the Correct Tort Option - Some states have an option with your insurance policy that allows you to waive your right to sue another party that injures you in a car accident unless the injury is severe.  Waiving this right will often make your policy significantly cheaper.  This option is not available in some states.  BE CAREFUL: Waiving your right to sue from an injury in a car accident could be a decision you regret later.  Make sure to speak with a licensed sales agent in the state where you live about the risks involved before making a decision.

35. Lower Your Uninsured Motorist Bodily Injury Coverage – Uninsured motorist bodily injury coverage pays you for injuries you receive in a car accident caused by someone without insurance or without enough insurance.  Lowering the amount of coverage will reduce your premium.  BE CAREFUL: Although reducing this coverage can save you money, it is the least recommended option in this entire list because the potential risk versus the potential price savings is very low.  Please speak about the risks with a licensed salesperson in your state and explore other options before reducing this coverage.

36. Take a Defensive Driver Course – Almost every auto insurance company will give a discount if you take a defensive driver class.  There are even online defensive driver courses so you won’t even need to leave the house.  BE CAREFUL: Contact your insurer and make sure they will provide a discount before you invest the time and money in a defensive driver class.

37. Exclude Drivers From Certain Vehicles – It’s not a good idea, but some companies will reduce your price if you exclude coverage for a particular driver with a particular vehicle.  If you know 17 year-old Johnny never drives the Ferrari then you could explore this option.  BE CAREFUL: This could be a very devastating decision for you.  Have you ever seen Ferris Bueller’s Day Off?

38. Retire – As if you needed another excuse to stop working.  Many insurers provide a discount to retired individuals.  If you were employed when your insurance policy was issued and have since retired, why not give them a call and see if changing your employment status will save you some money?

 

39. Work Closer to Home. (or move closer to work) - The number of miles you drive each way to work is often a rating factor for insurance companies.  This is another savings that you’ll probably not switch jobs or buy a new house to take advantage of, but if your situation has changed since your current insurance policy was issued, you may be able to save some money by updating your information.

40. Go to College – Although many people don’t like it, there are insurance companies that offer cheaper rates based on your highest level of education.  It’s probably not a reason to contact an admissions counselor just yet, but if your highest level of education has changed since your insurance policy was written, you might want to reach out to your insurance company.

41. Employee and Organization Discounts – Do you work for a major corporation or are you a member of any organizations?  Many insurance companies provide discounts for employees of particular companies and major organizations.  The only way to find out is to ask; reach out to your human resources department or an administrative member of any large scale organizations your are a member of to find out, you might be surprised.

42. Send Your Child Far Away For School – If your child is going to college far away from home, you should consider reaching out to your insurance company.  Many provide discounts for these particular situations assuming the child has not brought one of the insured vehicles with him or her.

43. Lower Your Bodily Injury Liability Coverage – Not a great idea, but for this list to be comprehensive it needs to be mentioned.  Bodily injury liability coverage pays other people for injuries they sustain in an accident that you cause.  If you lower the limits of liability for the insurance company, your policy will be cheaper.  BE CAREFUL: Please be aware that lowering your insurance company’s liability limits does not lower your personal limits.  If you injure someone with medical bills of $100,000 and you have only $25,000 in liability coverage, guess where the difference comes from.  Please talk to a state licensed insurance professional before considering a reduction in your liability limits.

44. Lower Your Property Damage Liability Coverage – It’s a horrible idea, but can save you money.  Property damage liability pays other people for damage you cause to property they own.  It mostly covers wrecked cars but can also pay for anything else you hit with your car.  Lowering this coverage will save you a very small amount of money but could leave you in a very bad situation.  BE CAREFUL: Don’t lower this coverage unless you’ve spoken with a licensed insurance professional to go over the risks.  Unless you can’t afford the coverage otherwise, don’t lower this coverage…raise it instead.

 

45. Get Older - Unless you’re a senior citizen, in which case your insurance will probably continue to increase as you age.  There’s nothing we can do about this one, other than lying to the company, which is a form of insurance fraud and can result in your claim being denied.

46. Get Good Grades in School – If there’s a student on your insurance policy with good grades, many carriers will reduce the price when you show them a report card.  If you are fortunate enough to be in this situation, you may have to continue to prove their academic prowess every year so make sure the discount hasn’t fallen off since the time the policy was written.

47. Buy a Car With Anti-Lock Brakes – Since they tend to reduce the number of rear-end and other accidents, anti-lock brakes will get a discount on your policy with most companies.  If you have anti-lock brakes now and don’t see any discount on your policy, make sure your present insurer is aware of the feature on your vehicle.

48. Have Your Bills Emailed to You – In an effort to reduce paper printing and mailing costs, some companies have begun to introduce discounts for getting your bill emailed to you every month rather than sent through snail mail.  BE CAREFUL: Along with your monthly bills, your insurance company will probably send promotional emails to market new products.  Laws about email marketing are pretty strict though so if you don’t want promotional emails, you will be able to unsubscribe.

49. Purchase a Policy Specifically For Collector Cars – If you have a collector car and are insuring it under your regular auto insurance policy, you may be paying much more than you should.  Most insurers that specialize in collector cars require very short annual mileage rates, but will charge a lot less in return.  BE CAREFUL: Switching a vehicle to a collector car policy may have implications on both policies that could be problematic.  If you’re considering such a policy, make sure to speak with a licensed sales representative in your state about any possible risks.

50. Drive Less Every Year – If you can drive less, most insurance companies will reduce your premium.  Each company has their own cutoff, but if you drive any of your vehicles under 5-10 thousand miles per year and can prove it you may be eligible for a cheaper rate.  Reach out to your current insurer or ask any company you get a quote from about your eligibility for a short-mileage rating.

51. Use Quote Assistant - If you have an iPhone or Android mobile device, Quote Assistant will compile a list of the most popular insurance carriers within your region and allow you to call them directly for a quote with one tap of your finger.  You can even save the quote details right there on your phone.  It’s incredibly easy and 100% safe!  Learn more by going to http://www.QuoteAssistant.com or on your mobile browser go directly to http://www.QuoteAss.com BE CAREFUL: After seeing how easy it is to use Quote Assistant, you’ll be tempted to save on insurance at every renewal!