We all need car insurance, whether it’s a personal choice or a state law. But the truth is, not everybody can afford car insurance.
We actually went a couple of years without it, so I know how that feels. I would never want to go without it again, because of the constant paranoia of getting pulled over and getting a ticket for not having it. If I can’t afford car insurance, how can I afford to pay a ticket for not having it. Duh!
Not to mention, what if something bad happened and we ended up owing thousands of dollars that we didn’t have. Not good.
There are a few things you can do to get your car insurance for less, but it’s still going to cost you. Better safe than sorry.
#1 Pay in Full
This is one of my favorites and I can’t pass up the nice discount. Every 6 months, we save $41 on our renewal, just for paying in full. That’s a really easy way to save, if you have the money to do it.
What we did, was save up our first 6 months of car insurance with my daily transfers. Then after 6 months, we had the money to start getting car insurance. We kept those daily transfers going and never have to worry about not having the money ready to go.
#2 Increase Your Deductible
This is more of a double edged sword, but it can save a lot of money. By increasing your deductibles, you would have to pay more out of pocket if something happened. But if nothing happens, you’re saving a lot of cash with each renewal.
#3 Compare Quotes
It’s amazing how much the prices can vary, so take the time to get multiple quotes. Then you can choose the one that best fits your budget. The first quote we got was from Geico, 5 minutes did not save us money on our car insurance—but it can for some people.
We ended up going with Progressive because it was the best price, recommended by many others and I love their customer service.
#4 Drive Better
I rarely drive, since we only have 1 car right now…but when I do, there are tons of crazy drivers out there. I know that everybody likes to talk, text, apply make-up and overall just not pay attention while driving, but that can cost you.
Depending on your car insurance company (and how long you’ve been there), accidents will normally raise your rates. Tickets can do the same thing. Why would you want to pay more when just a little bit of focus on your driving could save you big? Isn’t that kind of a no-brainer?
#5 Own Your Car
One of the things I hate the most (aside from interest) about car loans is that you are required to get full coverage. Sometimes, that can cost as much as the car payment itself. I don’t necessarily think full coverage is bad, but it can sometimes be a big waste of money.
But if you own your car, you get to choose if you want to pay all the extra money to have full coverage or not.
#6 Bundle Up
If you have more than 1 car (or vehicle), it’s usually best to keep them on the same policy to take advantage of the discount. Also, if you have multiple family members (drivers with cars) living in the same house, you can get a discount for that too.
You can also get your homeowner’s or renter’s insurance through the same company and get a discount. Different companies offer different products and services, so make sure to check out whether or not it would be cheaper to just bundle up.
#7 Be Loyal
Some people like to jump from company to company depending on their current quotes. But if you find a great company, it might pay off to be loyal and stick with them. You can earn discounts for staying with some insurance companies for longer periods and might even be forgiven for some accidents.
#8 Covered
I can’t recall if this includes carports too, but I remember being asked where our car was parked. I’m pretty sure that if you’re car is parked in your garage, you might be eligible for a discount.
It makes sense, because if your car is just out in the open, crazy weather can damage it, it’s easier to steal or break into and there’s more of a possibility that somebody can crash into it. This might vary with companies, so you might want to check it out just in case.
Nevermind number 8, apparently the only reason they asked me was to quote other companies. Yes, I know what happens when we assume things. 😉 Thanks so much for bringing this to my attention Edward.
#9 Alarms & Tracking
Another common discount is given for having a car alarm or tracking device on your car. It’s pretty straightforward and makes sense. Make sure to check if your car insurance company offers a discount for this.
It might even make sense to have an inexpensive one installed if you plan on keeping your car for a long time.
How do you save money on your car insurance?
Any discounts I missed?
I have no idea about #5. I always pay in full and generally don’t use it, even the last time I had a broken window, because I am too scared the premium would go up!
Pauline recently posted..Your Debt Expert’s Tips For Saving
Sometimes it just makes sense to cover the small the stuff, we do.
Jen Perkins recently posted..Why I’m Not Killing Our Mortgage
There are a number of insurance comparison websites in the UK. We change our insurer every year and always save simply because insurance companies don’t reward loyalty at all!
But there is little point in not having insurance – everything is computerised, automatic number plate recognition systems are everywhere and the fines are enormous if they catch you. I know some people do – generally youngsters whose policies are beyond them anyway so it is worth the risk – but not for me I’m afraid!
John@MoneyPrinciple recently posted..Essential information to be placed on business cards
Wow! Things are so different over there.
Jen Perkins recently posted..The Magic 401k & What Holds You Back?
Definitely shop around. When we bought the Jeep last year, our current insurance company wanted over $200 a month for it. We shopped around and are now with another company and it’s only $70.
Michelle recently posted..Carnival of Retirement
Funny that Progressive gave you a discount for covered parking. When I moved, I specifically asked them about that and they said they don’t offer a discount like that.
Edward Antrobus recently posted..Meet the 2013 $3K Challengers
That’s odd. I assumed they gave us a discount for parking in the garage, I couldn’t imagine why else they would ask me. Maybe I should give them a call and look into this some more. Thanks.
Jen Perkins recently posted..Net Worth Update~ February 2013
I have been with my insurance company for a long time. Every year I go out and check to see if I can save, but each time I continue with my policy. The reason being is that I was lucky to get insurance with them when I started driving and they give me awesome rates for some of the best coverage on the market. No company can touch their rates. On my hobby vehicle, I pay about $18 a month to insure it, but with other companies, it would cost me $60. Sad, but true!
Grayson @ Debt Roundup recently posted..The Best No Annual Fee Credit Cards of 2013
Update your information with your insurance company when you move too. I moved a mile down the road, but since my address was technically no longer within the city limits my car insurance dropped close to $70/year
The First Million is the Hardest recently posted..Investing Experts and the Herd Mentality
The time before last (when I updated the zip code), it ended up costing me more.
Jen Perkins recently posted..You’re So Vain—You Probably Think This Post Is About You
All good tips. I’ve thought about this topic before, but the one tip that eluded me was the covered parking one!
Digital Personal Finance recently posted..How Do You Save on Travel Expenses?
Well now I’m not so sure about it. Edward was told they didn’t do that, so I’m going to have to look into it further.
Jen Perkins recently posted..Preparing To Buy A House: The Score
I can say that tips 1 & 2 were the most effective in saving your penny for insurance. If you have the capacity to pay in full that’s great! And if not, consider increasing your deductibles.
Tip number 1 is one of the easiest! As long as you have the cash in advance, pay ahead and save a few bucks.
I love #6 & #7. Loyalty to your car insurance company can bring a great return on your investment when you really need it. Give them all your business and stay with them, and they’ll treat you well!
Jenny Smith recently posted..Is Chicken Noodle Soup the Cure?
These are some good points. The deductible one can be a really good idea if you don’t have teenage drivers things are bound to happen it’s just a matter of how frequently
We all know that car insurance is important when having an automobile. It will definitely guarantee our protection and needs when it comes to financial matter. It’s not simple to get your car insurance especially when you’re not financially stable but there are a lot of ways to do that.
Just like #1, it is wiser to pay in full. At first, it may look like a big amount but it will give us security in the future when unwanted things may happen. It is also important to have research and know the different rates to compare which is better based on your needs. As what you’ve mentioned and explained in your article, I found it helpful because of the effectiveness of these strategies.
My friend just got in an accident. he didnt have full coverage so he gets nothing. be carefull about your policy
One mistake a lot of people make is they don’t read the policy. The insurer doesn’t have to read it to you and in fact, you have to read it to be sure you have the coverage you want to be sure you have proper protection.
This is a great list. It’s always a good idea to have a conversation about what non-traditional things, like covered parking, may save you money on your insurance costs. Frequently simple things can save you hundreds in the long run, so take the time to talk to your agent.
There are a variety associated with insurance plan comparison web sites in britain. We all transform your insurer every year in addition to constantly spend less since insurance firms don’t compensate faithfulness by any means!
Although there’s small stage throughout the lack insurance plan – anything can be computerised, automatic quantity plate reputation devices usually are all over the place along with the penalties usually are substantial when they capture people. I know a number of people complete – normally kids whoever guidelines usually are over and above these people at any rate so it will be really worth danger – but not in my opinion I’m scared!