A Few Simple Ways to Save Money on Car Insurance

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Use these top ways to help save money on car insurance

If you’re willing to think outside of the box, it’s more than possible to reduce your monthly auto insurance bill by a significant amount. Sadly, few car owners explore their options in this arena. Here are just a few fruitful ideas worth investigating that can lower your total insurance expenses over time.

Self-Insure to the Max
Monthly premiums can be greatly reduced by avoiding the need for coverage in the first place. Increasing your deductible to $1,000 or more can slash your rates dramatically. If you drive carefully and use common sense, it’s easy to avoid fender benders. Stay on top of basic car maintenance and you’ll be able to ditch rental and tow coverage.

Reduce Coverage for Older Cars
If the age of a vehicle is more than ten years, it’s probably best to drop full coverage and go with strict liability protection. As resale value falls over time, you’ll likely end up paying more in premiums than you’d get from a claim settlement if you get into a wreck.

Improve Your Credit Rating
Unsurprisingly, people with above-average credit ratings pay less for all kinds of insurance. As such, it makes sense to consistently work on improving your score over time. Aside from avoiding late payments and defaults, it’s always a good idea to take out a multi-year loan and pay it back gradually.

Find Carrier-Specific Discounts
Depending on your insurance provider, there are many little things that you can do to reduce premiums. For example, taking an inexpensive driver safety course can take a substantial bite out of your rates. Furthermore, many companies give discounts to retirees, those in the military and members of certain alumni groups.

Bundle Your Insurance Wisely
Nowadays, nearly every insurance company offers automobile, home and even life insurance under the same umbrella. Try to bundle your insurance coverage by using the same company for everything. If possible, pay for six months of coverage up front. Though this approach isn’t guaranteed to yield results, that’s rarely the case.

Savviness Comes with Experience
Few people become cost-cutting wizards overnight. You’ll need to do a fair amount of research and window shopping to find the best combination of discounts available. Visit your local insurance agent and have them run you through a few options to settle on the perfect plan for your needs.

Use these top ways to help save money on car insurance

This Post Has 43 Comments

  1. I had no idea that when you raise your deductibles, your insurer will lower your rates. I like your insight to make sure you’re driving carefully and avoiding the small risks like a fender bender. If you use common sense on the road, being able to increase your deductible and lower your costs will be easy. Thanks for your tips on how to self-insure and get the best car insurance!

  2. Initially, it sounds sort of crazy to de-fund your insurance coverage for any car. However, I really love the point that you make about older cars just not being worth it. Older cars are driven less and basically are too costly for what they are actually worth.

  3. That’s interesting that you credit score can influence your car insurance cost. I always pay my bills on time. Hopefully this makes it so I have a better credit score and have lower insurance costs that way.

  4. I didn’t know that taking driver safety courses might reduce your auto insurance rates! Since we bought a sports car this summer, our insurance has doubled. I think we’re going to call our insurance to see if we can do that!

  5. You make a really good point about old cars costing more in premiums than the payment from a claim settlement if a wreck happened. We have a pretty old minivan and have been trying to decide how to insure it. After reading this, we will probably just do liability!

  6. In April, I am going to be buying my first car and getting car insurance for the first time as well. I will just have graduated from college and so saving money is going to be very important for me. I really like the idea of bundling my insurance with the same company and I can see how that would be beneficial. However, what benefit do I get from paying for six months of coverage up front?

    1. Hi! Some car insurance agencies will give a discount for paying in full or for a few months at a time rather than billing you monthly. Just check with them first to see if they offer that type of discount.

  7. That is cool that insurance agents are able to work with you in finding an auto insurance policy that will work for you. That is smart to self-insure to the max to avoid not being covered in an accident. That is cool that having better credit can help you get a better car insurance rate.

  8. I have been driving my parents car since I graduated high school and I am hoping to buy my own car this year. Along with that, I will need to get car insurance so I appreciate these tips on how to save money when doing so. I like the tip you give of making sure that you are self-insured as much as possible so that you will be able to spend less on auto insurance. I imagine that would help in other aspects of insurance as well. I will be sure to keep these things in mind!

  9. I am no expert on car insurance but I know enough to know that I am paying way too much for my insurance. I have an older car so I like what you said about dropping full coverage and just going with strict liability protection. These tips are actually things I can understand and that I know I can do. Thank you so much for this information on simple ways to save money on car insurance, it was very helpful.

  10. Although you said these are the simple ways, they are really effective to save money on car insurance. I love all of your ways from self-insure to the max to savviness comes with experience.

  11. Great tips, Thanks for sharing this article. I am going to switch my insurance to one company. I have homeowner and car with one company and then my motorcycle with another. I didn’t realize that if I bundle that I can save money.

  12. I just barely bought my first car! The first thing I thought I’d do is find myself insurance. This is my first time not under my parents coverage. That kind of leaves me in a tough spot because I don’t know how to decide. How would you suggest I improve my credit rating?

  13. Thanks for sharing all of this advice on saving money on car insurance. I had no idea that your credit score is actually related to the cost of your insurance premium. It’s so interesting that a good credit score correlates with safer driving, among other things. I guess it just shows that being responsible is something that affects all areas of your life.

  14. Thank you for the help. I am in the process of looking for auto insurance for my new car. I like the idea of finding carrier-specific discounts, as you mentioned. Are most carriers open about the discounts that they offer?

  15. I really like your advice on reducing coverage on older cars. I never thought of it before, but it makes sense to do that so you’re not putting in more money than needed. Thank you for the great tips on car insurance.

  16. These are some great tips, and I appreciate your advice to reduce coverage on older cars to save on insurance. My husband and I each have cars of our own, and we’re planning on getting an older car for our daughter who is moving off to college. We’ll definitely insure it less because it won’t be worth as much overall, and that way we can save. Thanks for the great post!

  17. I appreciate it that you mentioned about the old cars. I think it is expensive in maintaining an old car. I am also planning to buy a replacement one and this tips are a big help. Thank you for sharing this! Good Read!

  18. I like your suggestion to bundle insurance. My wife and I had separate insurance for a short time and it cost nearly double what we pay now. We also managed to bundle all of our auto, home, and life insurance together and got a very reasonable rate. Putting it all together can make a huge difference.

  19. I had no idea that reducing coverage for older cars can save you money on insurance. I have always tried to have more coverage so that if something does happen, it’s covered. I will have to remember that the next time I see my insurance agent.

  20. Wow
    What a lovely post. These are very useful and wonderful tips that will surely help me.The initial steps in getting car insurance at a good price can be so frustrating, most people tend to ignore it once they have it. That could be costing them considerable sums of money each year.

    Regards;
    Cortney G

  21. I really like your tip “reduce coverage for older cars.” That seems like a really smart thing to do if you are wanting to save some money on your car insurance. My husband and I have been wanting to get some new car insurance for the past few months now so we will have to keep this information in mind while we are searching. Thanks!

  22. I agree that a great way to minimize costs on car insurance is to minimize coverage on old cars. I can see how this can help you save money because the insurance company would have to pay less for an older model in the case of an accident. I would want to make sure to know what the rules of the company are rewarding car models, I could see how some cars would cost more to insure due to the parts being hard to find.

  23. Hey, You have shared such a great piece of information.
    Thanks for the wonderful tips, really a great help.

    Being eco-friendly and driving an eco-friendly car would help you a lot in having a great deal with the auto car insurance company. Many companies have exclusive discount schemes on auto insurance for customers who care about the environment.

  24. Wow, that’s good to know that increasing your deductible to $1,000 or more can slash your rates dramatically. I guess if you can take on more risk your insurance won’t need as much money. My niece is learning to drive- I wonder what kind of insurance my sister has?

  25. I appreciate your advice to reduce coverage for a vehicle that is older than ten years in age. I imagine that at that point the value of the car is probably much less than it used to be and you would be able to self-insure much easier. Many insurance agents would probably be willing to give you information on how that would affect your specific situation.

  26. I appreciate that you recommend to improve my credit rating in order to save on my auto insurance. My wife and I have been trying to think of ways that we can save on anything possible. I’ll have to start thinking of ways we can start improving our credit. Perhaps we could consolidate our student loans into one.

  27. I did not know that there were so many things that you could do to reduce the rates of insurance so much. My wife and I are going to start to pay auto insurance for out son next year because he will have his license so we are looking for ways to cut down on the price of insurance. I agree that older cars should not have the full coverage because they are most likely not worth the price that you would pay for them to get fixed in the first place.

  28. Great information!!

    All tips are really beneficial in order to save money on car insurance.I think it is too expensive in maintaining an old car. So, I am also planning to buy a new car. Thank you for sharing this.

  29. Nice Post…. @…..!
    Purchasing a car insurance policy is not an easy task. A right type of insurance policy is act as protection layer of our vehicle. This article beautifully explained the tips about” how to reduce motor or car insurance policy cost”. Especially the tips of “bundling the insurance policy” are very impressive tips to reduce the cost of insurance policy.
    To reduce the cost of car or motor insurance policy, people can also take the help from their local insurance agent. Because local insurance agent has many policy discount offer present, which are offer by the insurance company……..!
    Thanks for sharing such a nice post…………….   

  30. Well, most of the car owners usually take car insurance as a biggest burden due to its higher premium rates. But they don’t know they can also save money on their car insurance. For that reason, they should have basic knowledge regarding insurance policies. Here, in this context the blog has delivered with some lovely thought that will help to save money on insurance. So, I want to tell that maintaining a good credit history, comparing insurance costs of different providers and taking the advantage of low millage discounts will definitely save money on car insurance.

  31. Before thinking about saving, one needs to understand what is covered by a basic car insurance policy. Because all insurance policies are not same and it is actually a package of different types of coverage ranging from collision coverage to uninsured and under-insured motorist coverage, that are priced separately. As cost of car insurance premiums can vary by hundred dollars, hence, one needs to shop around in order to get the least price quote. In addition to that he should have to maintain a good credit history and he may also take the advantage of low millage discount and multi-policy discount which will help him to save some money on his car insurance.

  32. I didn’t realize that you could potentially save some money on your car insurance by taking a driver safety course. My oldest son is going to be driving soon. We may need to look into finding a good auto insurance rate for our family. I’ll have to ask about potential discounts from things like taking a safety course.

  33. I think that it is really interesting that you mention to self insure by increasing the deductible. That is something I have never thought of since this is my first time ever getting car insurance for myself. These will be great tips for me to take to my husband since we are getting this new car together.

  34. Thanks for the tips for saving on car insurance. I like how you said that we need to improve our credit rating. It’s already pretty good, but I’m sure we can do some things better!

  35. One of the main concerns for most families is the (small) household budget. There are many families make it a point to find the cheapest car insurance rate possible since saving money is so initially. According to my knowledge, the insuring more than one car on their insurance policy can save a family up to 20% on their car insurance premium 🙂

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