Top 15 Ways to Cut Your Car Insurance Costs

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There are numerous ways to add savings into your car insurance policy. With a little research and a few calls you can save quite a bit! Check through this list of ways to cut down on your insurance costs today. Be sure to check with your insurance company before making any changes.


1) What Car Safety Or Security Features Does Your Car Currently Have?

Does your car have airbags? If so, make sure you Insurance company knows where they are located in your car. Do you have a built in alarm system, key-less entry, anti lock breaks, specific types of seat belts, Head Restraints, All Wheel Drive, Electronic Stability Control and more. You may want to look at your owners manual to be sure of the complete list that your car has to offer in safety features. If you do not currently use or have a car alarm, consider installing one. This will help protect from any theft and make your car less of a risk to insure.


2) Stay Loyal

In some cases you may reap the financial benefits the longer you are with a company. Consider staying where you are if the rates are decent and you have been there longer than 3-5 years.


3) Compare Quotes

Have you compared rates lately? You may want to call some of your current companies competitors and see what they have to offer. They may be able to offer you more coverage for less!


4) Pick A Higher Deductible

This may not seem like an exciting option. Most deductibles start at around $200-$500 and can go up to almost 2,000. Check to see what your current deductible is and how high you are comfortable raising it. The higher the deductible the lower the premium. This may depend on if your car is paid in full or brand new. Assess what is best for your financial situation.


5) Good Student Or Good Driver Discount

Are you or another driver on your account a student? Do they get good grades? Ask your insurance company if they carry the “good student discount”! All you have to do is give a signed record of the student’s grades. Do you have a squeaky clean driving record? Ask for this discount as well!


6) Park In Your Garage

Did you know that some insurance companies will offer a savings on cars that are parked in a garage? When your car is in the garage it is less likely to be hit by another vehicle or broken into by a burglar.


7) Select the “Pay In Full” Payment Plan

Most Car Insurance Companies allow you to pick which payment plan suits you best. The bigger the chunk of payment at a time, the lower your overall yearly cost will be. For example if you choose to pay in full for the whole year, you will save yourself at least $200 off the top of your premium. Check your payment schedule and see if this is an option for you!


8) Take a Safe Driving Course

You may be lucky and your insurance company may offer a certain amount of savings if you have participated in a safe driving course. Be sure that this training does not cost more that the actual insurance discount. Otherwise it will not be worth the work and time to get done.


9) Multicar and Driver Discount

Do you have more than one driver or car on your policy? Ask if you can take advantage of additional savings with more cars or drivers on the same policy.


10) Lessen Your Commute

The more miles you drive each day plays a role in how much you will spend in car insurance. If you work locally this will help lower your premium. In addition if you are driving in a large city with a lot of traffic this will have an adverse effect on you premium as well. The shorter the drive the less likely you are to be involved in any traffic issues that may result in an accident. You may even want to try taking public transportation twice a week to lower your weekly average of miles put on your car.


11) Consider an Older, Smaller Car

We all want to drive nice cars but the added benefit of driving an older small sized car is that they cost less to insure. If your car is older, small and paid off, it is worth less and then does not need to carry a hefty insurance policy.


12) Do You Have Good Credit?

Some insurance companies will base your rates off of your credit score. If you have a great score you are more likely to have a lower rate.


13) Do You Need Full Coverage?

Is your car paid in full and older than 5 years? In some states you can opt out of full coverage. For example, we have two cars, one that is only a couple of years old with a monthly payment and another that is ten years old paid in full. For the newer car we keep full coverage on it because we are still paying it off. With the older car we keep limited coverage on it because it is not worth much and has been paid in full for a long time now.


14) Look Over Your Current Policy And Ask Some Questions!

Many times we just pay the monthly bill and do not realize what we are actually paying for! You may be paying a premium more suited for a brand new fully loaded large car and you have an older small sedan. Ask if there are any discounts that you may now qualify for that you didn’t before. Maybe they have added something new!


15) Multi-Policy Discount

Do you have your homeowners, boat, motorcycle or renters insurance through the same company as your auto insurance? You may want to consider bundling these services to save more!