How to Get the Best Deal on Car Insurance

Every state in the U.S. requires that you have Car insurance. And, of course, you want to protect yourself financially should something bad happen. So with a captive audience, you might think that car insurance would be really expensive. Fortunately, competition among companies and a bit of knowledge on your part when looking for car insurance can help you lower your payments for this crucial coverage.

#1 Drive Safely

The biggest thing you can do to get the best deal on car insurance is to drive safely. Don’t get any speeding tickets! Having a clean driving record keeps your premiums lower than if you have any accidents or tickets to your name. Driver’s under 25 should take driver’s education or a safe driving school which will not only make them a better driver but also get them a nice discount on their car insurance. Some insurance companies offer an electronic device that plugs into your car and tracks your driving. It not only provides hard data proving you are a good driver, but it also gives you real-time feedback on how you are doing. For instance, it will beep if you accelerate or stop too abruptly. This feedback will help you become not only a safer driver but also save you money on (now expensive) gasoline.

#2 Drive Less

The fewer miles you drive, the less likely you are to be in an accident that results in a claim to your insurance. When you apply, you usually are asked how many miles you drive. If you’ve started driving fewer miles because you work from home or don’t get out much, you might qualify for a low-usage discount as a result. Some companies even track your mileage and charge you by the mile. This can be very beneficial for the low mileage driver. Note: They have a per-day max charge, so you aren’t penalized for that occasional day trip.

#3 Pay Your Car Insurance Upfront

You can pay for car insurance on a monthly, quarterly, or annual basis, but you will get charged a fee for each separate bill. For instance, if you pay monthly, you will have 12 separate bills costing you an average of $3 a month extra for this. It might be labeled as a convenience fee or an installment charge. If you pay the whole policy in advance, you can skip this and save almost $50 a year.

#4 Bundle

Do you have other insurance needs? Bundling multiple policies together can get you savings. Renter’s or homeowner’s insurance is a common bundling option, but you might also add life insurance, pet insurance, and insurance for motorcycles, RVs, and boats, depending on your circumstances.

#5 Improve Your Credit Score

This one might surprise you because what does your credit score have to do with your driving? But many car insurance providers actually use your credit score and rating as a factor in determining your rates and premiums. The assumption is that people who aren’t as adept at managing their money are more likely to file claims, so they’re charged more. Clean up your credit report, and minimize your debt to get better numbers.

#6 Work With an Independent Insurance Agent

When looking for the best deal on car insurance, ask an independent insurance agent about their available discounts. They know consumers shop around, so they’ll work with you to apply any potential discounts they have. Since independent agents work with multiple companies, they can shop around for you among several companies that they represent to get you the best rates on your car insurance.

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