How to Get Cheaper Auto Insurance

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Contributor, Benzinga
November 28, 2023

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If you drive a car, you’ve likely experienced the frustrating process of finding cheap car insurance. Fortunately, there are some things that you can do to lower your costs without compromising the auto coverage you need. Here’s what you need to know. 

Where Can You Purchase Car Insurance?

You can go to several places to purchase a car insurance policy. First, you can work with a local insurance agent. This is a good option if you want to develop a personal relationship with someone who knows the insurance industry and does the research for you. 

You can also go directly to an auto insurer. If the insurance provider has a local office, you can stop in to speak with an agent. You can also call the insurance company or go to its website to get a car insurance quote.

If you need to find specialized car insurance because of lapses in coverage or a damaged driving record, you may want to use a specialty agency. Specialty agencies are used to working with situations that other insurers may not approve and can help you find the coverage you need.

Try Something New

Some people have no choice but to use a local insurance agent for all of their insurance needs. So it’s easy to get into a pattern of using the same agent for the same policy year after year. But when talking about cheap car insurance hacks, checking out a new insurer is one of the best things you can do. 

If you’re interested in finding cheap car insurance online, you might want to try out an insurance aggregator. These websites compile information about policies from several insurers to show you all of your coverage options. From there, you can choose the policy that gives you the best value.

6 Easy Ways on How to Get Cheap Auto Insurance

It’s important to remember that everyone’s insurance situation and needs are different. Your friend might have found the cheapest policy from one auto insurer, but that doesn’t mean that it’s the best option for you. You should never assume that one insurance company is cheaper than the rest.

Getting quotes from several insurers is the best way to shop and compare policies. You probably already know about the biggest insurance brand names, but what about the little guys? If there are regional insurers in your area, it’s a good idea to check to see what a policy from them looks like. 

Even if you’ve been using the same auto insurer for years, you might be missing out on some savings opportunities. Be sure to ask your insurer whether you qualify for any discounts. Each car insurance provider decides what discounts to offer, so some may be different than others. Common car insurance discounts include military discounts, student discounts, autopay discounts and good driver discounts.

Change Your Deductible

After you’ve found the insurer with the cheapest car insurance policy, you’ll need to decide on your deductible. Changing your deductible can make a big impact on your monthly premium. If you want to lower your monthly insurance premium, you can increase your deductible. On the other side of things, if you want to have fewer out-of-pocket costs if you get into an accident, you can achieve that by lowering your deductible. 

Increasing your deductible may seem like the most obvious way to save money on auto insurance. Just remember that while you will save money upfront, you may end up paying more overall if you need to file a claim later. 

What About Insurance Bundles?

Most insurers offer discounts for bundling insurance products. This is when you have more than one type of insurance policy with an insurance company. For example, you could have an auto insurance policy and home insurance bundled together for a discount. 

Single Payments

Some insurers offer different rates based on the payment schedule you choose. You can ask whether there is a discount for single payments. If you choose to do this, you’ll pay for the entire auto policy (usually six months) before the policy’s effective date.

Security

Your car insurance company may also offer discounts for having anti-theft and other features on your vehicle. Make sure your insurer is aware of the features of your vehicle to see whether it earns you a discount.

Try Collision Coverage

Collision coverage can be a good option if you’re looking for cheap car insurance and is usually required if you lease or finance your vehicle. It helps pay to repair or replace your vehicle if it’s damaged in an accident. This way, you’ll ensure that you can repair or replace your vehicle no matter how bad the damage is.

Proactive Car Insurance Hacks

By being proactive, you’ll probably earn yourself more savings on your auto insurance policy.

The first thing to remember is that auto insurance companies will consider the driving record of the people they insure. By keeping a clean driving history, you’ll qualify for a lower monthly car insurance premium. Some insurers offer discounts if you keep a device in your car that tracks your driving habits. By using this, the insurer can see just how safely you drive. Taking a defensive driving course is another good way to hone your driving skills and earn a discount in the process.

Your driving record isn’t all that matters, though. The vehicle you drive also plays a large part in the cost of auto insurance. An auto insurance company will consider the safety record of the car, the size of its engine, cost of repairs and safety equipment. It may also consider the likelihood of your vehicle being stolen when determining your car insurance rate. These are things you should keep in mind when shopping for a new vehicle. You can even request and compare car insurance quotes for the vehicles you’re considering to see which would be the least expensive to insure.

New drivers need to be more cautious when searching for auto insurance rates. This applies to teenagers especially because they are always new to the driver’s seat. Auto insurance for a teen can be much more expensive than it is for people in their early 20s and beyond. Be sure to keep shopping until you find a reasonable rate.

Compare Car Insurance Rates from Different Providers

Now that you know what to look for and how to get cheap car insurance, it’s time to start shopping! Here are some of the best auto insurers to help you get started.

Next Steps to Getting Insured

The best way to save money is to be well-informed. Benzinga is here to support you through all of your financial decisions. Benzinga can help you request free insurance quotes, research insurers and get you set up for financial success.

Frequently Asked Questions

Q

At what age does car insurance get cheaper?

A

Car insurance tends to get cheaper when you are in your mid-20s, and you should see a significant drop in your monthly premium around age 25. After age 65, it can start to increase again.

Q

What are the benefits of low-cost car insurance?

A

Low-cost car insurance can give you coverage without making you pay for things you don’t need. By purchasing a low-cost policy, you can save your money and use it on things that are much more exciting than car insurance. Plus, you’ll feel good knowing that you were proactive in getting a good price.

Q

How do I ask for a lower car insurance rate?

A
To ask for a lower car insurance rate, you can start by researching and comparing prices from different insurance companies. Once you have an idea of the average rates, you can call your current insurance provider and politely inquire about any potential discounts or lower rates they may offer. It is important to be prepared with information about your driving history, any safety features in your vehicle, and any changes in your circumstances that may qualify you for a lower rate. Additionally, you can mention any auto insurance quotes you have received from competitors to negotiate a better rate.
Q

What is a good credit score for car insurance?

A

A good credit score for car insurance typically falls within the range of 700-850. However, it’s important to note that different insurance providers may have their own criteria for determining premiums based on credit scores. It’s always a good idea to check with your specific insurance provider to understand their credit score requirements and how it may impact your rates.