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How To Get Cheaper Auto Insurance

 

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How to get cheaper auto insurance 

Auto insurance costs us hundreds of $ every year, and it can often be very expensive. However, there are some simple things we can do to try and get it cheaper. To get a cheaper insurance policy, you need to first identify what sort of insurance policy you need for your vehicle, once you have this in mind, you can start searching for cheaper policies. Here are a few simple tips: 

Decide on the type of coverage you need 

Saving money on your auto insurance could be as simple as deciding on the type of policy you need. For example, if your vehicle is only worth a few hundred dollars, is there much point in you purchasing full cover? This is just something you should consider. 

Compare different insurance providers 

Comparing as many insurance policies as possible gives you the best possible chance of finding the best deal for you; it also gives you a great view of the wider options available. Using a price comparison website is the best way to compare a lot of quotes; they basically do the hard work for you so you don’t have to. Be sure to check what each quote is offering before making a final decision, check the level of insurance and the level of deductibles and adjust accordingly. 

Are there extras included in the policy? 

When you purchase auto insurance there are sometimes extras that are included in the policy. These extras sometimes include health or legal cover, but do you really need them? If you already have health or legal cover, then you should try and get them removed from your policy, this will reduce the cost of the policy as a whole.   

Have you considered higher deductibles?  

By requesting higher deductibles in your insurance policy does bring the cost of your insurance down substantially. If you raise your deductible amount from say $150 to $300 you could typically save around 10% on your full coverage. The higher your deductible amount the higher the % you save will be, however, you have to remember that if you need to make a claim then you will have to pay the deductible amount before your policy comes into action. 

See what special offers are available 

When people think about auto insurance, many people don’t think about special offers, but as a matter of fact, there are a lot of special offers currently available. For example, if you have two vehicles at home have you considered a multi car policy? They offer fantastic discounts for people who have more than one vehicle. There are also special offers for young drivers who are just learning to drive. You can be rewarded for good grades in school by getting a discount percentage off your insurance policy. There are plenty of special offers available; you just have to find the offer that suits your own circumstances. 

Have you checked your credit record? 

Maintaining a good credit record is a good way to save money on your auto insurance. Insurance providers often look at your credit record when you make an application, so maintaining a good record tells the insurance provider that you are a reliable customer. Keep your record clean by making any regular payments on time and try not to get yourself in to debt. 

I hope these simple tips put you on the right path to getting cheaper auto insurance, remember that every little bit of money you save helps. 

This article was provided by Andreas Nicolaides, a personal finance author at UK-based MoneySupermarket.com.

17 Responses to How To Get Cheaper Auto Insurance

  1. We combine our homeowners and auto insurance with the same company to reduce our monthly cost, plus we get the good student discount on my son.

    I was about to raise my deductible, and I literally had a minor accident (my fault) the weekend before. I was very lucky, in many ways.

    • This is a great point that I failed to mention, thanks for bringing it up.

      It’s very true, if you combine more than one policy with the same insurance provider, you can make great savings! 🙂

    • I’m glad you’re all right!!!

      That strategy work very well too 🙂

      We haven’t changed our provider for a few years now (they haven’t raised our rates…), but perhaps I should start looking again, especially when combining it with account homeowner’s insurance too!

      Have a Great weekend EverydayTips!!!

  2. I’d also say that holding different insurance policies with the same carrier can reduce the total premium. Our USAA auto insurance gives us a substantial discount because we also have renters insurance with them. It’s great to check around, but sometimes the answer is staring right at you!

    • I think you are right, some of the wise insurance companies are starting to wise up and are trying to create customer loyalty!

      It’s about time they ate some smart pills 🙂

      Sounds like you made a wise choice!!!

      Have a great weekend Little House!

  3. Great tips. You are so right about asking about the discounts and getting a higher deductible. For example, some people don’t drive a particular vehicle that much and could request a special discount based on the limited number of miles they put on the vehicle. Combining policies (multi-car or home) can also help cut costs substantially. I agree that this is an area to be vigilant in. I also will compare rates every so often (1X per year) just to keep everyone honest 🙂

    • Did I mention that you are quickly becoming my next financial hero!

      Spot on as usually Roshawn!!!

      I think Mr. Watson’s comment encapsulates all ideas (post and previous commenters) very nicely around this topic, great job!

      Have a great weekend, Mr Watson!!!

  4. Good tips. We combine our renters and auto insurance there by making the renters insurance free (we need it with living in a fault line anyway). We also use our professional society discount. Both of took a $25 online traffic school for a good driver discount (which way more than $50 and we get it for the next 5 yrs). We use one car very rarely so we got a discount for that as well… And we park in an underground garage so a small discount for that too… They don’t give them just like that, we had to ask for every single thing…

    • Sounds like you did a great job and did you homework 🙂

      Currently, I have my homeowners and car insurance separate, but perhaps I will combine them next year 🙂

  5. combining multiple policies, taking preventive measures (courses) and annually renegotiating has worked well for us. by renegotiating, i really mean getting quotes from competitors. we have had our provider match lowest quotes in the past before we switched to USAA. in the last few years with USAA it just doesn’t seem like anyone can come close to what they offer, at least on the auto side.

  6. We usually settle for a higher deductible. It really helped us in the past to curb the cost. Comparing prices also helps. But what helped us a lot was just sticking with the same provider and negotiating the price.

  7. There is a program in the UK called pass plus and its some additional basic training that new drivers can opt to take when they pass their test. It aims to make them a safer driver and insurance companies recognise this and some offer a 20-30% reduction on the policy. When you are a new driver costs are high and 20-30% is a lot. Is there anything like that in the US?