Sep 24

9 ways you can lower your car insurance costs

Reading Time: 3 mins

Are you looking to buy a car, but worried about insurance? Yes, car insurance can cost a fortune, and therefore we are sharing the following tips that will help you save a lot of money on your insurance plan.


Buy an Old Car

If the car you buy is old, it eliminates the need for collision coverage. This is the coverage you pay for any damage you caused to your vehicle, and it makes a big chunk of the insurance costs. Btw, we have heard vintage cars last longer than the modern heap.



One Company

If you want to save money on car insurance, it’s important that you group all policies including home, auto, health, etc. Buy them all from only one company and earn a multi-line discount. This can help you take off 10%-20% of your premium.


Work Out the Deductible

You can cut your auto premium if you raise your deductible. The deductible is the amount you pay out of pocket when you make a claim. The difference between a $50-$100 deductible is significant. Therefore, decide how much you can afford to pay out of pocket and adjust the premiums accordingly.


Get Quotes

You need to call the instance agent and find out how much it will cost to insure the car you want to buy. Premiums differ from make, model and year. This is one of the areas where smart shopping will pay off!


Drive Carefully and Less

Do you know that safe drivers get rewarded with affordable premiums? Therefore, drive safe and less. Avoid speeding and do stay out of accidents. This will help you save 5% and more on your premiums. Most company will cut off the insurance rate if you avoid traffic violations for a given period. The time will be mentioned on terms and conditions, do read them!

One more thing, let your insurance agent know if you are the infrequent driver. The less time you spend on the road means fewer chances of an accident. This also helps to lower your premium. So, makes sure you tell the agent about your traveling habits if you are a carpooler, or you perhaps take the subway a few days of the week. It can also win you low mileage discount.


Skip Monthly Bill Pay

High insurance costs might make monthly bill-pay an attractive option, but you pay for the convenience with an add-on fee. So, avoid these extra charges, and get billing every 6-12 months. Ask for auto-billing to save even more money.

In case you get nervous from large bills, set up the monthly bill-pay. Divide the premium by twelve and deposit the amount into a savings account every month. This will make sure you have the money ready in time.


Forget Roadside and Rental Coverage

Insurance plans come packed with a lot of extra features. But you don’t need most of them. Yes, you don’t need roadside assistance and car rental coverage. Therefore, you should go over the insurance policy line by line and remove stuff you don’t need.


Work on Your Credit Score

Your credit score is important for determining the overall cost of your premium. To make sure you get the best deals possible, make sure you pay your bills on time. If you believe your score is not good enough, then wait and work on it before getting your new car.


Buy a Hybrid

This may seem absurd, but insurance companies offer discounts and perks if you buy a hybrid or any other alternative fuel car. So talk to the insurance agent and see what options they have available.



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