The best ways to get cheap auto insurance are to compare quotes every 6 to 12 months, take advantage of any available discounts, and drop any unnecessary coverage. discounts can save customers up to 35%, for example, and insurers say drivers can save up to 20% by switching to a cheaper company.
1. compare quotes every 6-12 months.
To make sure you keep getting the best deal, you should look for quotes every time you need to renew your policy. This is especially important if you’ve recently received a ticket or been in an accident, or if you’ve been with the same insurer for a while. For example, the cheapest car insurance company when you were a teenager might not be the cheapest option for you 10 years later.
Reading: How to get the lowest insurance rate
You can use wallethub’s cheap auto insurance analytics as a starting point to find the cheapest carriers in your state.
2. take advantage of the discounts.
All major insurance companies offer a variety of discounts to reward customer loyalty, safe driving, and vehicle safety, among other things. Although some discounts are applied automatically, others may require a little work on your part. For example, you can ask your insurer if they offer a discount for paperless billing or a discount for paying in full.
3. consider usage-based or pay-per-mile insurance.
Usage-based insurance allows drivers to receive discounts in exchange for safe driving habits, monitored by a plug-in device or smartphone app. If you’re a careful driver who’s comfortable being monitored, you could save up to 50%, depending on the insurer.
Similarly, infrequent drivers can take advantage of pay-per-mile programs, which charge customers a base rate plus a few cents per mile driven. Retirees, remote workers, and people who often use other methods of transportation are most likely to save by switching to a pay-per-mile policy.
4. increase your deductible.
Your deductible is the amount of money you must pay out of pocket when you file some types of insurance claims, including collision and comprehensive coverage claims. Choosing a higher deductible generally results in a lower premium, so you can save by increasing your deductible. however, it is important to choose a reasonable amount that you can comfortably pay in the event of an unexpected claim.
5. choose your coverage limits carefully.
Almost every state requires a certain amount of auto insurance coverage, which you must purchase in order to legally drive. Beyond that, you must meet the coverage requirements set forth by your lender or lessor, if applicable. then you can choose for yourself what else to buy, if you want anything at all.
The best way to decide how much additional coverage to get is to weigh the costs and benefits of each type of optional insurance. For example, if you could get by without a car for a few days or weeks, then a rental refund probably won’t be necessary.
6. focus on safe driving.
Your driving record is the most important factor in determining your auto insurance premium. Drivers with a history of traffic violations, at-fault accidents, and serious offenses such as driving under the influence or reckless driving are more expensive to insure, as they are more likely to file a claim. As a result, practicing safe driving habits will help you in the long run. You can also ask your insurer if there is a way to get a discount by taking driver’s education or defensive driving courses.
7. improve your credit score.
In states where it is allowed, all major auto insurance companies take a potential customer’s credit history into account when calculating premiums. Insurers typically use auto insurance scores, which are based on the same information as regular credit scores. So unless you live in Hawaii, Massachusetts, or California, improving your credit score in general can lower your premium by up to 67%.
8. choose your car taking into account insurance costs.
As a general rule, valuable cars are more expensive to insure, as are powerful vehicles and cars that are particularly prone to theft. So if you’re looking to save in the long run, it’s a good idea to get quotes on different vehicles before you buy a new car. this way, you’ll know how much you can expect to pay for coverage.