Best Auto Insurance: Save More

Getting the best auto insurance rates can be tricky, but there are a few things you can do to ensure you're getting a good deal. Firstly, shop around and compare rates from multiple companies, including smaller, local insurers. The cost of insurance depends on various factors, including your driving record, age, credit history, vehicle, and location, so it's important to get quotes from a variety of sources.

You should also consider the type of coverage you need. Liability insurance, which is required in most states, typically includes bodily injury liability coverage, property damage liability insurance, and uninsured motorist coverage. You can choose higher coverage limits, but this will increase your premium. Increasing your deductible can help lower your monthly payments, but make sure you can afford the out-of-pocket expenses if you need to make a claim.

Additionally, look into discounts. Many insurers offer reduced rates for safe drivers, students, those with multiple policies, and more. Maintaining a good credit record and driving a car with safety features can also help lower your insurance costs.

Finally, consider usage-based insurance, which tracks your driving behaviour and can provide discounts for safe driving. By combining these strategies, you can find competitive auto insurance rates that meet your needs.

Shop around for the best rate

Shopping around for the best auto insurance rate is a great way to ensure you get a good deal. Prices and policies vary from company to company, so it's worth doing your research. Here are some tips to help you shop around for the best rate:

Get Multiple Quotes

Start by getting quotes from at least three companies. You can do this by contacting insurers directly, either by phone or online. You can also use an insurance comparison site, like The Zebra, to get multiple quotes at once. These sites allow you to compare rates and coverage options from different insurers side by side. When comparing quotes, make sure they include the same levels of coverage and discounts so you can accurately see which company is offering the best rate.

Compare Different Types of Insurance Companies

There are different types of insurance companies, including those that sell through their own agents, those that sell through independent agents, and those that sell directly to consumers. Get quotes from different types of companies to see which offers the best rate for you.

Don't Shop by Price Alone

While price is important, it's not the only factor to consider when choosing an insurance company. Ask friends and family for recommendations and check consumer reviews to get an idea of each company's customer service and claims satisfaction. You can also contact your state insurance department to find out if they provide information on consumer complaints by company.

Check Financial Stability

It's important to pick an insurance company that is financially stable and will be able to pay out your claim if you need to file one. You can check the financial health of insurance companies by using rating companies like AM Best and Standard & Poor's.

Consider Regional Insurers

Don't just focus on the big-name insurers. Smaller, regional insurers often have higher customer satisfaction ratings and may offer lower rates. So be sure to get quotes from both national and regional companies.

Re-evaluate Your Policy Periodically

Even after you've found a great rate and chosen an insurer, don't get complacent. Insurance rates can change over time, and new discounts may become available. So it's a good idea to re-evaluate your policy periodically and compare it to other options on the market. By following these tips, you can make sure you're getting the best auto insurance rate possible.

Compare insurance costs before buying a car

Comparing insurance costs before buying a car can help you save money and get the best auto insurance rates. Here are some tips to help you compare insurance costs effectively:

• Narrow down your vehicle choices: Select your top two or three vehicle choices based on your budget, preferred features, and lifestyle. Keep in mind that certain characteristics, such as the car's price, repair costs, age, make and model, body type, safety features, and anti-theft features, can impact your insurance rates.
• Estimate the coverage you need: Consider purchasing coverage that is at least equal to your assets to protect yourself financially in case of a severe accident. While your state may have minimum insurance requirements, they might not be sufficient. Additionally, consider adding collision and comprehensive coverage, especially if you have a newer vehicle or an auto loan.
• Get quotes from multiple insurers: Insurance rates can vary significantly between companies, so it's essential to shop around. Contact different insurers, either online, over the phone, or in person, to get quotes for the same amount of coverage for your selected vehicles.
• Choose the right deductible: The deductible is the amount you must pay before the insurance company covers the rest. Typically, policies with higher deductibles are more affordable. When selecting your deductible, choose an amount that you can comfortably afford if you need to file a claim.
• Compare insurance rates by driver history: Your driving history can impact your insurance rates. If you have a clean driving record, you may be eligible for lower rates. However, factors such as a recent DUI, speeding ticket, or at-fault accident can increase your rates. Compare rates from different companies to find the most affordable option for your situation.
• Consider your personal characteristics: Factors such as your age, gender, marital status, driving record, location, and credit score can influence your insurance rates. Teen drivers, for example, typically have higher insurance quotes than other age groups. Compare rates from different companies, taking into account any discounts you may be eligible for based on these factors.

Ask for higher deductibles

Asking for higher deductibles is a great way to lower your auto insurance costs. A deductible is the amount you pay out of pocket before your insurance policy kicks in. For example, if you have a $3,000 repair and a $1,000 deductible, you pay $1,000, and your insurance company covers the remaining $2,000.

Most drivers opt for a $500 deductible, but you can choose a higher amount, such as $1,000 or $2,500, to lower your insurance rate. While a higher deductible means lower monthly insurance costs, it also means you'll pay more out of pocket if you file a claim. So, it's a good idea to have enough money set aside to pay the deductible in case you need to make a claim.

When deciding on a deductible amount, consider your car's value and your financial situation. If your car is not worth much, a lower deductible is generally better. On the other hand, if you have a more expensive car, a higher deductible makes more sense. Additionally, if you don't have savings to cover a large unexpected bill, a lower deductible with higher monthly insurance premiums may be a better option for protecting your finances in the event of an accident.

It's also important to evaluate your risk tolerance. Choosing a high-deductible plan assumes you won't have a car accident. If you have a history of accidents or engage in high-risk driving behaviours, you may want to opt for a lower deductible.

By increasing your deductible, you can substantially lower your insurance costs. For instance, raising your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Increasing it further to $1,000 can save you 40 percent or more.

In conclusion, asking for higher deductibles is a strategic way to get the best auto insurance rates, but it's crucial to ensure you have the financial means to cover the deductible amount if needed.

Reduce coverage on older cars

If your car is older, it may be worth considering reducing your coverage. As a vehicle ages, its value decreases, so it may not be worth paying for comprehensive coverage.

Full coverage on an older car can be expensive and may not be a worthwhile investment. For example, the cost of insuring a 10-year-old car with full coverage could be around $1,758 a year, while the average value of these older cars is $5,067. After an accident, insurance rates for older cars can be even higher in relation to the car's value. If your car is totalled, you may find it more economical to pay for a new car than to commit to higher future insurance rates.

If your car is worth less than ten times the premium, it may not be cost-effective to purchase collision or comprehensive coverage. You can check the worth of your car with auto dealers, banks, or online at Kelley's Blue Book.

You can save money by switching to a minimum coverage or liability-only insurance policy. This type of policy will only pay for damage to another person's vehicle if you are at fault in an accident. While this can lower your insurance bill, remember that you will have to pay to repair or replace your car if it is stolen or damaged.

Before reducing your coverage, be sure to check the laws in your state, as some states require additional insurance types such as personal injury protection.

Seek out other discounts

Seeking out other discounts can be a great way to save money on your auto insurance. Here are some additional discounts you may be eligible for:

Defensive Driving Courses

Taking a defensive driving course can help you become a safer driver and may lead to lower insurance rates. Some insurers offer discounts for drivers who take these courses, so be sure to ask your insurance provider if this is an option for you.

Good Student Discounts

If you have a student on your policy who is a full-time student and maintains good grades, you may be eligible for a good student discount. Most insurers offer this discount, but the definition of "good" grades may vary, so be sure to check with your insurance company for specific requirements.

Distant Student Discounts

If you have a student on your policy who attends college away from home and leaves their car behind, you may qualify for a distant student discount. The student typically must be enrolled full-time and be a certain distance away from home, but requirements can vary by insurer.

Employer-Based Discounts

Some employers negotiate bulk auto insurance rates for their employees, so it's worth checking with your employer to see if this is an option for you. Keep in mind that these discounts are usually only valid while you are employed with the company.

Affinity Discounts

Some insurers offer discounts to members of certain professions, such as teachers or first responders, or to members of specific organizations, such as alumni associations or AARP. Be sure to ask your insurance company about any affinity discounts you may be eligible for.

Automatic Payment Discounts

Many insurance companies offer discounts to policyholders who set up automatic premium payments. This can be done through electronic funds transfer, debit card, or credit card. Not only can this save you money, but it can also ensure that your coverage doesn't lapse due to missed payments.

Paperless Discounts

Opting for electronic statements and policy documents instead of paper bills can also save you money. Going paperless is not only convenient but can also help reduce clutter and save resources.

Remember, when seeking out discounts, it's important to compare the final price of the policy, not just the number of discounts offered. Some companies may offer fewer discounts but still have lower overall rates. It's also a good idea to review your policy regularly and shop around for the best rates, as discounts and eligibility requirements can change over time.

Frequently asked questions