4 Fast Ways to Help Save Money On A Horrible Car Insurance Premium
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Written by
Leslie Kasperowicz
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Reviewed by
Joel Ohman
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UPDATED: Oct 2, 2020
It’s all about you. We want to help you make the right coverage choices.
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Every driver should have an active auto insurance policy well before they get behind the wheel of a vehicle, but the premiums on these plans can be overwhelming.
Here are a few easy steps you can take to keep your premiums to an absolute minimum.
Table of Contents
Alter your Deductible
When an insurance provider is determining your monthly premiums, one of the biggest variables they will take into consideration is your deductible.
Drivers who opt for larger deductibles tend to have much more affordable premiums.
If you are a safe driver with a good record, then you might want to call up your insurance provider and ask to have your deductible raised slightly.
This is also a good option for drivers who have saved up quite a bit of money for emergency expenses.
Affects of Altering (Raising) Your Deductible
Note: As illustrated by the graph, raising your deductible is the quickest way to lower your monthly car insurance bill. Discounts, second and bundling a policy, third. The best method is to use a combination of all to lower your premium. Besides having minimum coverage for your vehicle, this is the best option to lower monthly rates.
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Keep Your Driving Record Clean
In most cases, an accident will be placed on your record if it is determined that you are at fault.
Even if no other cars were involved in your accident and no one was injured, you could face huge increases to your insurance premiums.
Professionals know that those who are involved in a major accident should consider contacting an attorney to keep the accident off their record.
You might also be able to take driving school to have the points reduced or removed entirely.
10 Ways To Lower Your Car Insurance Bill
| Coverage Change |
|---|
| Clean driving record |
| Ask for higher deductibles |
| Reduce coverage on older cars |
| Bundle coverage |
| Good credit |
| Low mileage discounts |
| Other discounts |
| Shop around |
| Before buying compare coverage and price |
| Group plan discounts |
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Make Your Car Safer
Not only do insurance policies cover collisions, but they might also cover other expenses such as vandalism, theft, and natural disasters.
That is why drivers who are able to keep their cars safe and secure often have much lower premiums.
Simple upgrades such as GPS tracking devices, alarm systems, and kill switches could potentially reduce your premiums.
Drivers who keep their vehicles parked in safe locations such as garages tend to have much lower rates as well.
Vehicles Which are the Cheapest and Safest to Insure
| Vehicle | Price | Avg. Premium |
|---|---|---|
| Toyota Rav4 | $24,350 | $1,261 |
| Honda Accord | $22,205 | $1,267 |
| Honda CR-V | $23,845 | $1,272 |
| Subaru Forester | $22,395 | $1,291 |
| Hyundai Sonata | $21,300 | $1,418 |
| Honda Civic | $19,050 | $1,421 |
| Toyota Camry | $23,070 | $1,459 |
| Toyota Prius | $24,600 | $1,463 |
| Acura RDX | $35,370 | $1,479 |
| Nissan Sentra | $16,780 | $1,498 |
| Lexus RX | $44,700 | $1,511 |
| Audi Q5 | $40,900 | $1,563 |
| Acura MDX | $41,165 | $1,572 |
| Ford Fusion | $22,110 | $1,272 |
| Lexus ES 350 | $41,650 | $1,723 |
| Nissan Rogue | $23,290 | $1,463 |
| Kia Sedona | $26,400 | $1,469 |
| Chevrolet Equinox | $22,600 | $1,572 |
| Mercedes-Benz E-Class | $49,650 | $1,786 |
| Ford F-150 | $30,600 | $1,468 |
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Bundle Your Insurance
Many of the leading insurance providers, such as Allstate, offer different types of coverage to private parties and businesses.
Those who have multiple forms of insurance such as life insurance and renters insurance should speak with their provider about bundling their policies.
By bundling your coverage, you will have much more leverage when you are negotiating your premiums and deductibles.
Insurance providers are generally very excited to bundle policies because they are able to retain current customers while increasing their profits.
Lowest Rate Drop by State by Bundling a Policy
Click on any link to find State Minimum Coverage.
| State | Percentage Drop |
|---|---|
| Florida | 7.9% |
| New York | 10.3% |
| West Virginia | 10.9% |
| New Jersey | 12.3% |
| Rhode Island | 12.5% |
| Vermont | 12.9% |
| Connecticut | 14.2% |
| Maryland | 14.9% |
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Conclusion
Just because your car insurance is a fixed monthly expense doesn’t mean it should be an ongoing burden that chips away at your hard-earned savings.
With a few upgrades and a little negotiating, you might be able to significantly reduce your insurance premiums.
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