It’s not easy to find cheap car insurance these days. Premiums always seem to be going up rather than down. Finding the cheapest deal is made difficult by the fact that insurance companies all use different formulas to calculate their quote and use a lot of personal information to come up with a price. Things like your age, where you live, where you drive, how much you drive, the vehicle you drive and your driving history will all be taken into account. Some car insurers reduce their coverage in order to hook you in with cheaper prices while others go for a higher price and better package. If you really want to find the best possible car insurance deals we’ve got a few tricks of the trade to share with you. Read our top 25 tips below.


Compare The Competition

You will need to sort through a lot of different insurance companies, from local businesses in your State to online insurance comparison companies. They will all offer something slightly different, from the coverage they offer to the rates they charge so you need to go through the options carefully, making sure you are getting what you need at a great price. It also makes sense to ask your friends and family about their insurance providers and the customer service levels they provide. The most important thing you can do when trying to find cheaper auto insurance is compare and compare again.

Top Car Insurance Companies

Live In A Low Crime Area

You’ll notice that insurance agents will be asking about your commute times, routes, and where you live. They are not going to stalk you. They need this information as where you live is a huge factor in the premiums you will be charged. If your area suffers from high crime levels, you’ll likely be paying a higher premium as there is more chance your call will be vandalised or stolen. Also, the further you drive on your daily commute, the greater your chance of being in an accident. So if your drive to work or school is short, you’ll get a better rate.

Look For Age Based Discounts

The best rates, age-based, are given between 25-55 years old. These drivers are considered to be the safest drivers, more so than teenagers and the elderly. So when you hit 25, try to get a lower premium. And when you reach 55, expect a higher rate.

Increase Your Deductible

Your deductible is the money you pay in cash in the event of an accident. If you have a clean record and live in a relatively safe place, you can opt for a higher deductible, so you get lower monthly rates. Remember that you only pay the deductible if you get into an accident, but the monthly premiums are constant.

Are Your Driving The Right Vehicle?

What you drive matters. We’re not judgmental, but your car’s age, brand, and model will affect your premium. For instance, newer cars have more expensive parts if you’ll need to replace them. Or that some cars are known to be reliable and experience less trouble than other cars. Older vehicles, especially those 20 years old cars, may be more expensive to repair and fix as well. Of course, luxury cars and sports cars are automatically more expensive.

Look For Discounts For Multiple Vehicles

If you have multiple vehicles or multiple drivers in your household, talk to you agent and see if they can get you lower premiums if you consolidate all of them in one policy.

Consolidate All Your Policies

And don’t just look for consolidation of vehicles. Some insurance companies can offer you a great discount if you insure your house, your cars, and other possessions with them.

Should You Get Liability Insurance?

We always think that full coverage is a great deal, but in reality, we might be paying for coverage we don’t need. The best example for this is liability insurance, or rental car fees (for multiple car owners), or towing services (if you already have that from membership in AAA or something similar).

Do You Need Storage Insurance?

If you are looking to insure a seasonal vehicle, or a show car, or any vehicle that needs to be in storage for a particular period, you may opt out of full coverage insurance and just get storage insurance.

Loyalty Pays…. Sometimes

Check with your car insurance companies for loyalty programs that offer discounts or fee add-ons for loyal customers. The longer and better your relationship with your agent and car insurance company, the better deals and discounts you can get, and it usually translates to better customer service and prompt repairs when needed.

Check Your Vehicles Safety Features

The more (and better) safety features that your car has, the better the deal you can get. Things like automatic seatbelts, side airbags, and rear seat airbags help increase the safety rating of your vehicle.

Keep Your Driving Record Clean

Any accident can cause your premium to increase by as much as 40%, so make sure your record stays clean. Safe and clean driving records can get you lower rates, or discounts from car insurance companies.

Clean Up Your Credit Score

Your credit score has to be clean and as high as possible. You will have a lot of things contributing to that, such as mortgages, student loans, house loans, and others types of debt. Your car insurance agent will also look at it, and it could affect your premiums.

Discounts For Retirees

You can get discounts or lower fees if you are retired. Retired people tend to drive less, so they put in less mileage. This is not typically mentioned by agents, so be proactive, and ask for it.

Where Do You Park Your Car?

If your vehicle is just left parked on the street, visible to everyone, your car is an easy target for theft and vandalism. By parking off-street, or in your garage, your car is safer, and your premium will be lower.

Install A Security Device

Your premium can also be reduced if you have a built-in alarm system or immobiliser, or have one professionally installed.

Double Check Your Policy

It won’t hurt to take a second, even third look through your car insurance paperwork. This ensures that you not only know the fine print, but you can also check if you are being charged with add-ons or services you did not sign up for. You also get to verify that all your pertinent information is accurate and updated, to avoid problems later on.

Drive Less

Vehicle mileage and the amount of time spent on the road can be a big factor in your premium. So if you use your car less, you’ll get lower rates.

Take A Class

Take and advanced driving course. And make sure you pass it. Passing this course can get you lower rates.

Study Hard

Are you a student and do you have good grades? Be proud and tell your car insurance agent. That can sometimes get you discounts for your car insurance.

Discounts Through Affiliations

Some membership clubs, alumni associations, business associations or military associations may have tie-ups with your car insurance company. Mention this to your agent so they can check for additional discounts.

Check For Unnecessary Add-Ons

Some car insurance companies add-on services to your contract automatically. If you do not need these services, just ask your agent to remove them so you can enjoy a lower cost of your premium.

Is Your VIN Correct?

Your VIN is your vehicle’s unique ID. Most of the basic charges that make up your premium are based on that. It’s what’s used to identify your vehicle in an accident. If you get a single number wrong, you will have problems, and you also might be paying a different rate.

Try To Pay Up-Front In Full

Like with big-ticket items, paying in full, or in less number of months, is favorable for the company. And to encourage their clients to pay in full, they offer discounts. If you have the money to cover the total amount, pay for it in full and enjoy the discount you can get.

Green Is Great

The growing number of green cars has caught the attention of car insurance companies. These energy-efficient cars tend to have lower premiums from car insurance companies.

 


Disclaimer: Our service is not intended to be, nor should it be construed as financial advice. We help our readers make informed decisions via impartial information and guides. Where appropriate, we may introduce partner companies who can provide services relating to financial products.

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