Best Affordable Auto Insurance Options

Car insurance is a necessity, but it can be expensive. The good news is that there are ways to find affordable auto insurance.

The cheapest car insurance company depends on your driver profile, including your age, driving record, and location. For example, USAA is the cheapest option for military members and their families, while Geico is the cheapest for drivers with poor credit.

To find the most affordable auto insurance, it's recommended that you compare quotes from multiple companies. You can also ask about discounts, such as for bundling policies or having safety features in your vehicle. Additionally, consider paying for smaller claims out of pocket to avoid a rate increase, and opt for an older vehicle, as newer cars tend to be more expensive to insure.

It's important to remember that choosing the cheapest option may come with risks, such as poor customer service, slow claims processing, and limited coverage options. Therefore, it's essential to consider not only the price but also the quality of the insurance provider.

Compare quotes from multiple insurers

Comparing quotes from multiple insurers is a great way to ensure you’re getting a competitive rate. Most car insurance companies offer free online quotes.

When comparing quotes, make sure you are getting quotes for the same types and levels of coverage so you can be confident that you are getting the best price for the insurance you want.

• Get quotes from at least three different insurers. This will allow you to see how their rates stack up and find the best coverage for the best price.
• Consider your specific needs. For example, if you have a new car, you may want to add comprehensive and collision coverage to your policy. If you are a young driver, you may want to stay on your parent's policy if you are still living at home.
• Look for discounts. Many insurers offer discounts for things like bundling policies, having a good driving record, or being a student. Make sure to ask about any discounts you may be eligible for.
• Use a comparison site. There are websites that allow you to obtain and compare quotes from multiple insurers at once, making it easier to find the best rate.
• Work with an agent. You can also work with an independent agent or insurance broker to help you compare rates and find the best coverage for your needs.

By following these tips, you can be confident that you are getting the best price for your car insurance and that you have the coverage you need.

Ask for discounts

Discounts are a great way to save money on your auto insurance. While some discounts are automatically applied, others require you to ask for them. Here are some of the most common discounts you can ask for:

Multi-Policy Discount

Bundling your auto insurance with other policies such as homeowners, renters, or life insurance can often get you a discount of between 5% to 25%. This is one of the biggest discounts you can get and is a great way to save money on your insurance premiums.

Vehicle Safety Discounts

If your car has safety features such as anti-lock brakes, airbags, and daytime running lights, you may be eligible for a discount. Airbag discounts can be as much as 40% applied to your medical payments or personal injury protection coverage. Similarly, anti-lock brakes can get you a discount of 5% to 10% off your collision coverage.

Anti-Theft Device Discounts

If your car has anti-theft features, you can typically get a discount of up to 5% to 25% off your comprehensive coverage. This includes factory-installed and after-market-installed devices such as GPS-based systems, stolen vehicle recovery systems, and VIN etching.

Good Driver Discounts

Insurance companies often reward good drivers with discounts. If you have a clean driving record with no accidents or traffic violations, you may qualify for a good driver discount, which can range between 10% to 40%.

Defensive Driver Discounts

Taking an approved defensive driving course can also get you a discount on your insurance. This discount typically ranges between 5% to 10% and may be limited to qualified drivers of a certain age, usually 50 or older.

Good Student Discount

If you or your student driver is enrolled full-time in high school or college and maintains good grades, you may be eligible for a good student discount. This discount typically ranges from 8% to 25% and may have additional requirements such as a minimum age and grade point average.

Student Away at School Discount

If your student is away at school and doesn't have regular access to a vehicle, you may be able to get a discount on your insurance. This discount usually applies if the student is under a certain age and the school is located a certain distance away from home.

Pay-in-Full Discount

Paying your full policy term upfront can also get you a discount on your insurance. This discount typically ranges from 6% to 14% and can help you save money on your insurance premiums.

Electronic Funds Transfer (EFT) Discount

If you set up automatic payments through electronic funds transfer, you may be eligible for a small discount, typically ranging from 3% to 6%.

Remember that not all discounts are offered by all insurance companies, and the availability of discounts may vary by state. It's always a good idea to review your policy and ask your insurance agent about any discounts you may be eligible for.

Cash in on major life changes

Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer lower rates for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.

• Getting married or divorced
• Moving to a new city or state
• Buying a new car
• Changing jobs
• Retiring
• Having a baby
• Adding a teen driver to your policy

It's always a good idea to compare quotes from multiple insurers and see if you can get a better deal. You may be able to save hundreds of dollars a year on your car insurance by shopping around and taking advantage of discounts and other cost-saving measures.

Raise your deductible

Raising your car insurance deductible is a great way to lower your insurance costs and save you hundreds of dollars a year. A car insurance deductible is the initial sum you have to pay out-of-pocket before your insurance coverage kicks in and begins to pay out a claim due to an accident or damage to your vehicle. Typically, you can choose a deductible of $250, $500 or $1,000, but amounts can go as high as $2,500.

The deductible is applicable to two optional coverages that cover physical damages: comprehensive and collision. Collision coverage covers your own car damages after your vehicle collides with something, and comprehensive coverage covers everything else, including theft, vandalism, flood damage, a falling tree or an animal strike.

If you increase your deductible from $500 to $1,000, you may lower your car insurance rate by 10%, although the exact savings will depend on various factors, including your carrier, location and driving record. According to a Forbes Advisor analysis, drivers who increase their deductibles can save between 7% to 28% a year on average.

However, it is important to consider your financial situation and driving habits when choosing a deductible amount. If you have a history of tickets and accidents, a higher deductible might help you manage costs. Additionally, if you have a car that is being financed, finance companies might not let you have a deductible higher than a certain amount.

Raising your deductible can be a smart way to lower your monthly insurance premium, but it is important to ensure that you have the financial means to cover the higher deductible in case of a claim.

Revisit quotes after your driving record improves

When it comes to finding the most affordable auto insurance, it's important to shop around and compare quotes from multiple providers. Your rates can vary depending on factors such as your age, driving history, credit score, and location. Here are some tips to help you revisit quotes and find more affordable auto insurance after improving your driving record:

Shop for New Quotes:

After improving your driving record, it's a good idea to shop for new auto insurance quotes. Accidents, tickets, and moving violations can stay on your record for several years, and insurance companies typically consider these factors when determining your rates. By waiting three to five years after any incidents, you may be able to negotiate lower rates or find more favourable coverage options.

Compare Quotes from Multiple Insurers:

Don't settle for the first quote you receive. Compare rates and coverage options from at least three different insurance companies. This will help you understand the market and find the most affordable option for your improved driving record.

Consider Working with an Agent:

Consider working with an insurance broker or independent agent. They have access to multiple insurance companies and can help you find the best rates, especially if you have a less-than-perfect driving record. They can guide you through the process and ensure you're getting the coverage you need at a price that fits your budget.

Review Your Coverage Needs:

When revisiting your auto insurance, take the time to review your coverage needs. You may find that you no longer require certain types of coverage or that you need to increase your liability limits for better financial protection. Assess your current situation, including the age and value of your vehicle, and make adjustments as necessary.

Ask About Discounts:

Insurance companies offer a variety of discounts that can help lower your rates. For example, you may be eligible for a good driver discount if you've maintained a clean driving record for a certain number of years. Other common discounts include those for bundling policies, insuring multiple vehicles, or being a student. Ask your insurance provider about any applicable discounts you may qualify for.

Improve Your Credit Score:

In addition to your driving record, your credit score can also impact your auto insurance rates. A higher credit score can help you secure lower rates, while a poor credit score may result in higher premiums. Work on improving your credit score by paying your bills on time, reducing debt, and maintaining a low credit utilisation ratio.

Consider a Higher Deductible:

If you're willing to take on more risk, consider choosing a higher deductible. A higher deductible will lower your monthly premiums, but keep in mind that you'll need to pay more out of pocket if you're involved in an accident or need to file a claim. Ensure you have enough savings to cover the higher deductible in case of an unexpected event.

Remember, it's important to maintain a clean driving record and practice safe driving habits to keep your auto insurance rates low. By following these tips, you'll be well on your way to finding more affordable coverage options after improving your driving record.

Frequently asked questions