How to Lower Your Car Insurance Rates

Spending less on car insurance can be as simple as shopping around.

Car insurance is a big expense when it comes to owning your own car. Here are some ways you can lower your car insurance rates.

Shop Around

With all the commercials out there, you shouldn’t assume that one company will be the cheapest. Take advantage of the competitive market and shop around. Due to state and local insurance laws, premiums can vary greatly from state to state, there isn’t a single insurer that’s the cheapest solution for all drivers. Research shows that good drivers that don’t compare auto insurers could be missing out on hundreds of dollars in savings if they haven’t compared in the last few years.

Check Out Your Local Car Insurance Brokers

You should check out regional companies and local independent agents. Sometimes, they can take advantage of knowing the local markets better than the major insurance companies. Also, their customer service ratings tend to be higher. Working with an independent agent allows you to be able to call or visit their office directly to work through problems instead of being on hold with a call center that only has scripts to go off.

Check for Any Discounts

Even after getting a quote from a company, you might be able to get a better deal. Check what discounts they offer to lower your car insurance rates. Below is a list of common discounts:

  • Bundle your other insurance policies, such as homeowners or renters

  • If you have more than one car, put them on the same policy

  • Drive safely - many companies give you a break for having a clean record

  • Enroll in electronic documents

  • Does your can have any anti-theft devices?

  • Do they offer discounts for members of affiliated groups? Military, Alumni Associations, AAA, etc

There’s a long list of discounts that are offered, but just because a company has the most discounts doesn’t mean they’ll have the lowest premium.

Better Credit Could Mean a Lower Car Insurance Rates

Some insurance companies look at your credit score. That’s because they have correlated better credit ratings to being less likely to file a claim. Not all states allow this though. If you live in California, Hawaii or Massachusetts, good credit doesn’t mean anything to auto insurance companies.

Review Your Needed Coverage and Deductible

Do you need comprehensive coverage or collision? These two types of coverage will pay to repair the damage to your vehicle after an accident. If you’re financing your car then these are likely required, but if you have an older car that is paid for then you might be able to get rid of these types of coverage, especially if your car has a lower market value. Also, with older vehicles, consider increasing your deductible.  It’s more than likely you can find aftermarket or used parts if you need a repair, and sometimes these repairs are less than the standard deductible.

In the end, your best bet is to shop around. Use a comparison tool to look at policies side-by-side to find the best price and fit for you. You can learn more about car insurance and other types of insurance in our guide.