Is your monthly auto insurance premium too high? Fortunately, there are simple steps you can take to cut costs. So if you’re wondering how to get cheap car insurance, this article is for you.
Read on to learn our best tips for how to get cheap car insurance, as well as the best cheapest auto insurance providers. We’ve taken the time to review the top auto insurance companies in the industry, so when you’re ready to purchase a policy, you’ll know who’s the best in coverage options, cost, customer service, claims processing, and more.
Use the tool below to start comparing car insurance quotes between providers in your area:
In this article:
1. Compare Car Insurance Quotes For Cheaper Car Insurance
When you’re determining how to get cheap car insurance, you must remember to avoid strictly comparing your premium to someone else’s. You can’t always compare rates, even if you live in the same neighborhood. What you can do, though, is get auto insurance quotes from a number of providers and compare your own quotes to ensure you’re paying the best price for your coverage.
Here are a few popular providers and their annual average costs for a 35-year-old driver according to our rate estimates.
Car Insurance Company Average Annual Cost USAA $990 State Farm $1,312 Progressive $1,346 Geico $1,356 Nationwide $1,570 Allstate $2,450 AAA $2, . Play With Your Coverage Limits
There are many types of coverage available, all of which affect the amount you pay each month. Full coverage, which includes comprehensive coverage and collision coverage, tends to be more expensive. That’s why many people opt for the minimum required for bodily injuryliability auto insuranceand property damage liability coverage.
Want to know how to get cheap car insurance? You can reduce your monthly premium by adjusting the coverage you have and getting rid of coverage you may not need. You may be tempted to add on optional coverage, but sticking to the basics can greatly lower your rates.
For example, you can remove or reduce medical payments coverage. If you and your family are already covered by health insurance, you may not need to worry about this add-on.
Also, you may not need rental car reimbursement if you’re prepared with another car or take public transportation when your vehicle is getting worked on.
3. Consider A Higher Deductible For More Affordable Car Insurance
Like adjusting your coverage amounts, changing your deductible can also impact your monthly insurance premiums and help you save money. If you increase your out-of-pocket deductible from $500 to $1,000, you can see a lower monthly payment.
It is important to note, however, that this tactic will change what you must pay before insurance kicks in. Be mindful of taking this route to make sure you have enough saved up in case an emergency repair is necessary. Talking to your insurance agent will give you a better idea of how a higher deductible could result in more affordable car insurance.
4. Look For Car Insurance Discounts
If you’re asking yourself, “How do I get the cheapest auto insurance policy?,” one easy step is to ask your insurance provider if you qualify for any discounts. Your car insurance costs can be drastically reduced when you are eligible for multiple discounts, which vary by state and insurance provider.
Many auto insurance providers offer discounts for:
* Cars equipped with airbags, anti-lock brakes, and other safety features
* Teens with good grades
* Student discounts
* Teens and adults who complete safe driver courses
* Enrolling in autopay or going paperless with your billing
* Paying your premium in full up front
* Being a member of certain organizations like AAA
Do homeowners get cheaper car insurance? Many insurance carriers offer discounts for bundling policies. So, if you have more than one vehicle, or if you are looking to add homeowners or renters insurance, you may qualify for a discount as a policyholder. You can lower rates if you use the same insurance carrier for all your policies.
5. Consider The Cost Of Coverage Before You Buy A Car
Before you purchase a car, it’s important to know that some cars are more expensive to insure than others. This is crucial to keep in mind, especially if you’ve been eyeing that luxury sports car. The cost to insure will depend on the year the car was made, its make and model, the cost to repair it, and the likelihood of theft and vandalism.
For instance, luxury cars tend to be more expensive to insure, because the cost of repairs is much higher for these vehicles. Sports cars are also more expensive to insure because they are more prone to reckless driving and increasing the risk of fault accidents.
If you are looking for how to get cheap car insurance, start by looking at the car you drive. Sedans, vans, and other family-friendly cars have the lowest insurance rates. You can also get better rates when your car has collision-avoidance technology or anti-theft features. Check out more of the cheapest cars to insure when you’re shopping around.
6. Look Into Usage-Based Car Insurance
The next step for how to get cheaper car insurance is to consider trying out a usage-based discount. If you drive fewer miles than the carrier’s limit, you can get a deduction for your insurance rate. This can be beneficial if you drive less than 10,000 miles per year.
Low-mileage discounts are great for people who work from home or do not drive their car as often as other drivers. This also works if you carpool to work regularly.
7. Don’t Forget About Local And Regional Companies
While big names like Geico and State Farm promise you low rates, you can often still find cheaper prices when you choose a local or regional provider. Finding out how to get cheaper car insurance is often as simple as researching more providers.
Shop around for the best rates. After all, the formulas used by these insurance providers to calculate monthly premiums vary by company.
Many small carriers are considered “non-standard” companies. This means they have the resources and dedication to helping support drivers who may not have as great a driving record or who have a poor credit score.
8. Pay Your Bill On Time
An often overlooked step on how to get cheap car insurance is the credit score. Having good credit is a crucial factor that determines your car insurance premium in most states. Research shows that people who maintain good credit often file fewer insurance claims.
To reap these benefits, pay your bills on time and reduce your debts. Pay on credit cards and car payments to keep your credit balances low.
Can you negotiate car insurance? Most of the time, no, you can’t negotiate the amount you pay for car insurance. Instead, keeping up a good credit history will show your car insurance company that you deserve a good rate.
9. Improve Your Driving Habits For Cheap Auto Insurance
One of the best ways to get affordable rates on car insurance is to keep a clean driving record. Safe drivers prove to auto insurance companies they are not at high-risk for getting into an accident. This means they will most of the time be cheaper to insure.
To prove your worthiness to insurance providers, consider taking a defensive driving course. This can also open up discounts for you. These discounts will vary by the provider and your location.
You’ll also get a cheaper rate if you do not have any accidents in the past three years, nor any moving violations, like a speeding ticket, in the past three years. Take the steps to become a good driver by reducing your in-car distractions, remaining vigilant of your surroundings, and understanding the driving laws and speed limits in your area.
10. Shop Around Every 6 Months For The Cheapest Rates
Once you choose a car insurance policy, don’t lock yourself in. You have tons of insurance options, even after you commit to a provider.
Car insurance rates change often so that companies can stay competitive and get new customers. It can be a great idea to review your policy every time it renews, whether that is every six months or every year.
Get at least three different quotes to find the best car insurance rates. Then, you can change your auto insurance carrier if you find a better rate. Look for an insurance company with a good financial standing. You can check out AM Best, which rates companies on their financial health to help you feel secure about choosing an insurance provider.
Last, you can also ask friends for recommendations on the cheapest car insurance. A personal recommendation is sometimes the most valuable and accurate. But remember: What’s right for your friends may not be right for you, depending on your background and driving history.
How Do Car Insurance Companies Set Rates?
Car insurance premiums are developed based on the statistical likelihood that a driver will get into accidents or have a vehicle become damaged. Many personal qualities determine how much you pay.
Your rate will depend on your age, sex, driving record, marital status, credit score, zip code, car model, and more. And because you can’t change many of these personal factors, it’s difficult to compare one person’s auto policy to another’s. So, what’s right for someone else may not be right for you.
Here are some examples of how these characteristics impact your monthly premium:
* Younger people and seniors tend to pay more.
* Young males pay more than women.
* Married couples pay less than single individuals.
* Having multiple tickets and driving citations on your record means you may pay more.
* A history of clean, safe driving means you pay less.
* Your location determines the insurance requirements by state and whether there are dangerous driving conditions around you.
Many of these factors can change over the years as you resolve tickets and citations or improve your credit. However, factors like the state you live in may not be as easy to change. Each state requires its own minimum coverage. The more coverage that is required, the higher your premium will be.
Now that you understand what factors will determine your auto insurance rate, here’s our advice on how to get cheaper car insurance.
Our Recommended Cheap Car Insurance Providers
When you are searching for how to get cheap car insurance, make sure to keep your options open. Compare three or more insurance providers to get a more accurate, and sometimes lower, premium.
To help you out, we’ve researched some of the top insurance companies in the nation and ranked them on factors like customer satisfaction, industry reputation, monthly rates, coverage options, and available discounts. Among these were some of the cheapest auto insurers in the country. Check out some of our recommendations below, and enter your zip code to start comparing car insurance quotes.
#1 State Farm Insurance: 4.5 Stars
After our careful research, State Farm earned a 4.5 rating for coverage options, affordability, customer service, locations, and claims processing. The company offers some of the best auto insurance rates with low average premiums.
State Farm also has many discounts available for good students, safe drivers, customers who bundle multiple policies, and more. If you’re looking for the cheapest car insurance for new drivers, State Farm is a good option because it has programs to help young drivers stay safe throughout their first years of driving.
To learn more, read our full State Farm insurance review.
#2 Geico Insurance: 4.5 Stars
Geico auto insurance earned a 4.5-star rating in our review. In the past, this company offered to save you 15 percent or more when compared to other big-name insurers. However, now, it is known for reasonable costs and being backed by a strong financial base. This means your claims are more likely to be approved and fulfilled.
Geico offers a user-friendly mobile app that allows you to manage your account settings and file a claim. This company also has some good discounts to help you lower your premium, like having certain safety features installed on your car.
To learn more about car insurance coverage from this provider, read our full Geico review.
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
* Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
* Availability: We consider availability by state as well as exclusions for specific groups of drivers.
* Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
* Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
* Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
* Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
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