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If you're looking to learn how learn how to save money on your car insurance, these days, it is not that hard to know which car insurance provider will give you the best car insurance quotes ahead of buying a policy.
A quick research will provide you with several opinions on which car insurance companies are the best and cheapest or most expensive. However, statistics are always what they are, only statistics. Just because one company is statistically more expensive than the competition doesn’t mean that they won’t cut you a great deal for your precise needs.
No matter whether you’re a brand-new teenage driver who’s looking for the cheapest car insurance for teens and young drivers or if you’ve been driving for years, the chances are high that you are, in fact, overpaying for your car insurance and looking to understand better how to save money on auto insurance.
If you were to ask most Americans whether or not they’re happy with their current insurance policy, the chances are that you’d get mixed answers. However, one thing’s for certain- at least half of your friends and family would say that they’re probably overpaying for their car insurance. Of course, the problem is that nobody really knows how much they’re overpaying until they have a chance to compare quotes.
If you’re looking for ways to save money on car insurance, then we’ve got you covered. In this article, we’ll be taking a look at some of the top tips and tricks that car insurance policyholders are using to lower their monthly premiums and save money on car insurance.
When it comes to saving money, every penny counts. By employing one or multiple of these methods, we guarantee that you’ll find a better deal on your car insurance and be able to put more money in your savings at the end of the month!
The answer to the question 'How can I save money on car insurance?' is what we are going to address and simplify for you in this article. We are going to discuss ways to save money on car insurance, and exactly how to identify the best car insurance company for your needs and budget so that you can save money on car insurance and put that extra money into other things!
Are you ready to save?
Car insurance is notorious for being confusing and often hard to understand. One company could quote you at $150/month for a full-coverage policy, while another insurer could quote you at $275/month for the same amount of coverage for the same vehicle. The biggest reason for this discrepancy is that insurers are always trying to give you a better deal and steal clients from their competitors.
Apart from this, though, the final price you end up paying for your auto insurance policy depends on a number of different factors. Typically, one of the most important factors that determine your premium cost is your age. Mature drivers are statistically less likely to be involved in accidents, with drivers between ages 65 and 69 being the lowest ranking age range to be involved in deadly accidents.
Several other factors may also affect how much you ultimately end up paying for your auto insurance. Everything from your driving record/history to your individual FICO credit score can affect your rates. The more you know about your policy and how to save money on car insurance, though, the more likely you are to receive a better policy at a better price.
Our first tip to everybody is to always do a bit of shopping. As we mentioned earlier, you’ll never know how much you’re overpaying until you compare your quotes. If you want to cut straight to the chase, here’s an article we wrote about the country’s cheapest auto insurers based on recent consumer statistics.
There are a number of different ways to shop around. One of the easiest is to use online quote comparing tools. All you need to do is enter your personal information, answer some basic questions about your vehicle (color, mileage, trim, make/model, etc.), and list your current insurance provider. Within 24 to 48 hours, you’ll receive a number of quotes from different insurers, and you can compare the rate you’re paying to the rate you should be paying.
If you prefer a more personal touch, then you can always call insurance companies directly. Just inform them that you’re shopping around and would like to receive a quote. Also, mention the price that you’re currently paying for your premium and say you’d like to spend less.
According to the National Safety Council, the leading cause of occupational deaths is traffic accidents and other vehicle-related crashes! Crash deaths go far beyond workers, though. In 2019, 38,800 drivers in the U.S. lost their lives in a car wreck.
Although some of these were pure accidents, many of them could have been prevented if one or more of the drivers involved in the incident were practicing safe driving techniques such as defensive driving, double-checking blindspots, using turn signals, etc.
Many insurers offer their own defensive driving courses that you can take for free or for a small fee. These classes can be completed virtually online with a few hours of study and testing. Once completed, you may be able to save up to 10% or more on your monthly premium fees.
If you’re a homeowner, then you might consider bundling your home and auto insurance together. While it may be tempting to stay with that old insurer that you’ve been with forever, the chances are that it could be hurting your pockets and causing you to pay extra. According to our researcg, policyholders in some states saved up to 27% on both of their policies by bundling them together!
This means that one of the best ways to save money on your car insurance is to combine both auto and home insurance into one joint policy through the same insurance company. To see our complete opinion on bundling home and auto, check out this guide.
Another reason why you could be overpaying in premiums is that you could be paying for more coverage than you actually need. It’s very common for insurance agents to sell you on an overpriced policy with extra coverage (that you probably don’t need) just so they can make a better commission.
Our recent average car insurance cost research has found Maine has the lowest auto insurance requirements for drivers and the lowest premium rates overall, while Florida has the highest coverage requirements and some of the most expensive premiums in the country.
The best way to check this is to look at your state and check your state’s minimum liability car insurance requirements. Then compare these numbers to the coverage that you’re currently paying for. If you need the extra coverage, then by all means keep it. However, if you don’t need the extra coverage, consider downgrading your policy.
A recent NPR article stated that loyalty to a particular insurer is one of the most significant factors why drivers pay more than they should be paying for their policy.
Auto insurance pricing has always been discriminatory. Typically, the average car insurance cost is calculated based on factors such as:
Your driving record.
Your age.
What type of vehicle you drive.
Your income and credit.
How often you drive.
...and many other factors.
That being said, though, you could have the same driving record, vehicle, and credit history, request a quote from five different insurance companies and receive five very different quotes. Each insurance provider may be more or less discriminatory about which factors weigh most heavily. For example, some insurers have a strong accident forgiveness policy that forgives new drivers for their first accident, while other insurers will raise your premium for a small bump-up.
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The best way to ensure that you’re getting the best deal on your auto insurance policy is simply to compare quotes from different insurers. Insurance shoppers often establish brand loyalty before they even have a chance to compare other insurers’ quotes. Sometimes all it takes is for one insurance agent to be extra-friendly, nice, and helpful for you to then sign the dotted line and start paying $150 more per month than you should be paying!
Just because the agent is extra-polite to you doesn’t mean that you should necessarily trust them. Remember, they’re salespeople- it’s their job to represent the face of the company and be nice to you. Their friendliness doesn’t mean that they aren’t charging you an arm and a leg for your policy.
This is why you should always compare quotes from numerous different companies before deciding what insurer you want to sign up with.
The traditional method of comparing insurance quotes is just to call up all of your local insurers, give them your information, and wait on them to send you a quote for your policy. However, the downside of this method is that you can easily waste an entire day or two on the phone, waiting on hold, waiting for agents to call you back, and waiting on managerial approval.
The easiest way, by far, to compare insurance quotes is to use online insurance comparing tools like Young Alfred. The service is 100% free. All you need to do is enter some basic information about your vehicle, how long you’ve been driving, and your contact info. The virtual assistant will ask you questions such as:
What type of property are you trying to insure? You’ll be able to select between car, house, pet, renter’s insurance, or even select joint policies!
What are your primary concerns that you want to be covered (weather, theft, collision, etc.)?
Within one to three days, you’ll receive a number of different quotes from some of the country’s top insurers. You’ll also get some quotes from some smaller insurers who may not be quite as popular but can offer ultra-cheap policies.
Once you’ve got all of the quotes that you need, you’ll be able to choose the best insurer with complete confidence.
According to a recent consumer survey performed by Value Penguin, 70% of Millenials and Generation Z policyholders claimed that they would be willing to spend an hour comparing policy quotes in order to save $100. This goes back to our original point- if you want to get the best price on your insurance policy, then you need to throw brand loyalty out of the window.
One of the easiest ways to save money on car insurance is to work with a smaller insurer. The smaller the company, the less their customers have to pay for advertising and brand presence. For example, Geico is one of the most expensive insurers on the market because they pay for billboards all over the country, multi-million-dollar Superbowl ads, and celebrity endorsements.
Smaller companies don’t have the same massive overhead and can often offer you a better deal on your policy.
If you’re wondering how to save money on car insurance, then you should definitely ask about what type of discounts the insurer offers. Some insurance providers offer discounts, including:
Safe driver discounts
Low-mileage discounts
Good-grades discounts for students
Discounts for vehicle safety features
Carpooling discounts
Discounts for driving electric vehicles
...and more!
Unfortunately, many insurance agents will neglect to inform you about these discounts unless you specifically ask them since it hurts their commission. This means that you should always do your research on the company beforehand and see what type of discounts they offer. Once you get a chance to talk to an agent, make sure to ask them about specific discounts.
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