How to Get Cheap Car Insurance in 12 Easy Steps
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Car insurance can be an expensive bill for many drivers each month. Often, people are paying through the nose for policy add-ons they don’t really need. People are left constantly wondering, “Why is my car insurance policy so expensive?” The answer involves understanding what goes into car insurance and the best ways to get cheaper auto insurance. Join us as we help new drivers, young drivers, and experienced drivers find the most affordable rates on their current coverage plans.
What Goes into a Cheap Car Insurance Policy?
There are several factors that auto insurance companies use to decide the price and coverage you receive when looking for a cheap auto insurance policy. The company will generally consider several things, including:
- Driving record
- How often you use your car
- If you have a garage or if your car is parked on the street
- City or state
- Kind of car you drive
- Your credit score
All of these things will affect how much you have to pay. Some of them are in your control, while others (like your age) aren’t. But that doesn’t mean you can’t get cheaper rates. Below are just a few tips from the experts at Compare.com.
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12 Hacks Revealed: How to Get the Cheapest Car Insurance Possible
The better your driving record, the older you are, and the more protected your personal assets are, the more likely you’ll find the cheap auto insurance you’re after. However, there are a few other car insurance hacks you can explore to find affordable rates.
1. Review Your Coverage Policy Every Six Months
There’s a lot of competition present in the insurance market, which means rates often change for companies to keep up with demand and fluctuating business needs. Oftentimes, when you get comfortable with an insurance company, they’ll slowly raise their rates while other companies are lowering theirs. They get away with it because most people don’t notice the hikes.
It’s always a good idea to call around when your policy is up for renewal at the end of six months to make sure you’re still getting the cheapest car insurance possible.
2. Check for Discounts
There are some well-kept secrets in the insurance industry that you often don’t hear about unless someone clues you in. For example, if you work for the government or military or have close family in that occupation, you can often get reduced car insurance through what’s known as affinity discounts. There are also big discounts for taking additional driving courses, or even for being a senior.
When looking for a new insurance policy, mention it to your friends and family. It might seem like a boring conversation topic, but it will likely drive leads for “secret” car insurance deals you could get.
3. Use Price Comparison Sites
Comparing auto insurance rates is a great way to ensure you’re getting the cheapest auto insurance. Sites like Compare.com allow you to evaluate coverage plans in your area by reviewing several big-name companies and smaller brands to make sure you’re getting the best deal possible.
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4. Improve Your Driving Habits
In all honesty, the best way to get a great insurance rate has nothing to do with going through loopholes. It simply involves improving the safety of your driving. Reduce the frequency of accidents on your record, and the insurance company will be happy to reduce your rates.
In addition, insurance companies are using telematic devices that can be installed in your vehicle to monitor your driving. If it detects that you’re a cautious driver, information can be transmitted to the company to get you cheaper auto insurance.
5. Add a More Experienced Driver to Your Policy
Did you know that older, more experienced drivers often get better rates on car insurance than new or younger drivers, particularly those who have avoided accidents and traffic stops?
If you’re under the age of 25 or have a bad driving record, it might be beneficial for you to ask an older driver, such as your parents or an older sibling, to join your policy.
6. Avoid Pre-Paid Insurance
When money gets tight, people often choose to forego paying their car insurance premiums in favor of “more important” bills like the mortgage or rent, car payment, utilities, or groceries. As a result, you’ll end up with a more expensive policy that forces you to prepay the next year’s premium in advance. You’ll find yourself stuck with an overpriced premium with no escape.
While you’re looking for cheaper car insurance, remember the consequences of skipping your payments.
7. Pay Insurance Premiums Yearly
Nowadays, most people choose to pay their premiums monthly to break up the payments. However, you end up paying more in the long run with this method of payment.
By paying your premiums annually, you can save several hundred dollars a year.
8. Find Cash-Back Offers
Insurance companies often post deals, discounts, and special promotions through cash-back websites. When you purchase products or use a service on websites like ShopAtHome, ExtraBux, and Ebates, you’ll receive promotions and offers as rewards for your spending.
9. Play the Competition
As mentioned previously, the auto-insurance business is ripe with competition. There are insurance companies everywhere, many of which make billions from their widespread policies. You can use this competition to get better rates on your insurance.
Mention a deal that another company offered you to get a discount on what your current insurance company is providing.
10. Look for Coupons
Believe it or not, but you can actually get coupons for car insurance. Many of these coupons are more like advertisements than actual coupons, but some may save you a small percentage on your rates. These are worth looking into.
11. Downsize Your Car
The bigger and more expensive your car is, the more it will cost to insure. If affordable insurance and great coverage are what you seek, you’ll have a very difficult time finding that with a large vehicle.
Consider getting a smaller car to appease your tighter budget.
12. Use Your Credit Card Rewards
Many insurance companies will team up with banks to offer discounts on insurance as a reward for the frequent use of your credit card. Look for this form of reward when you cash in with your bank.
Affordable car insurance premiums may be closer than you think. By using your resources and keeping your eyes open for great deals, you could land yourself with coverage rates your friends will be jealous of.
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