Car insurance premiums rise year after year. Although your car insurance premium largely depends on your car, age and discount, you can get a better price by trying other ways around. You could actually save hundreds of dollars so it is worth the time and effort. Your goal is to reduce your premiums and get cheap car insurance and the best deal.
Here are ways to get cheaper car insurance
1. Ask for a Multiple Car Discount
If you own more than one car, you may insure them together and ask for a discount.
Multiple drivers can also be added to an insurance policy, allowing you to further reduce your auto insurance premiums. This includes spouses, boyfriends or girlfriends, and even roommates. Remember to comparison shop and do the math beforehand, however; in some cases it is cheaper to hold policies with separate insurance companies.
2. Look for a Group Discount
Some companies offer a discount on car insurance for being affiliated with certain organizations. These can range from credit unions, college sororities, or just having a certain credit card. Call your service center and ask them for a list of organization affiliations.
3. Combine Auto and Home or Renter's Policies
Most insurance companies give a discount if you carry your auto and home or renter's policy with the same company. This discount can be anywhere from 5%-20%!
4. Buy Safety Devices for your Car
The safety of your vehicle will also be taken into consideration by your agent when you are trying to get cheap car insurance. The technology and features seen in newer vehicles make them far safer than older vehicles, so you can get a start on lowering your premiums either by having updated safety features professionally installed into an outdated vehicle, or simply by purchasing a more recent car.
Things to look for when taking vehicle safety into mind include automatic seat belts, as this feature almost guarantees that both the driver and passenger will be wearing their belts at all time, and both driver-side and passenger-side airbags. Airbags in the rear seats of the vehicle can also help to improve the safety rating of your car, thereby lowering your monthly car insurance rates in the process.
Make sure your windshields and windows are free of cracks and chips, and make sure all of your mirrors are intact. If your vehicle is visually inspected by an agent, faults like this will surely result in higher insurance rates.
5. Keep your Credit Clean
Another great tip to get cheap car insurance is to keep your credit clean. A lot of insurance companies are checking your credit and basing your policy on what is found. Make sure you check to see if your credit is in good shape, and if it is not, you may want to seek out companies who do not do credit checks.
6. Lower your Annual Mileage
The amount of miles you travel throughout the year is another factor used by insurers to calculate the cost of car insurance. Each company might have their own rules on mileage and at what level it will affect the insurance premium, but on the whole the industry usually work with the concept that annual mileage falls into one of the following categories: 3k, 5k, 8k, 10k, 12k, 15k and 20k. If you can limit your annual mileage to less than the average 12/15k then you could start to see it reflected in the cost of your car insurance.
7. Stick With Yearly Policies
Choosing a yearly policy can extend your savings on your car insurance. Purchasing a yearly policy instead of a six month policy gives you a rate that cannot be changed for one year vs. changing every six months.
8. Comparison Shop
The first thing you should do when looking for cheap car insurance is comparison shop. Consult your area’s local phone book, call or visit agencies near you, and remember to take notes regarding prices.
Next you’ll want to do some online research to find out your online car insurance options. Again, take notes and compare these to the notes you have concerning local agents.
Finally, ask your friends and family members what insurer they use, and ask for any recommendations or warnings they may have about other agencies. You’re sure to receive an unbiased opinion every time.
9. Move to a Lower-Crime Area
The location of your home as well as your daily commute to the workplace is also taken into consideration by insurance agents when determining your car insurance premiums. This is a factor for a number of good reasons.
Individuals who live and park their car in wealthy neighborhoods are statistically less likely to have their car stolen, broken into, or damaged while it is parked overnight. Secondly, those who have shorter commutes to and from work are statistically less likely to be involved in an accident as they spend less time on the road than drivers with longer commutes.
This is why agents always make sure your home address and telephone number is correct. They use this information to determine if you live in a low-risk neighborhood or a high-risk area, and they compare with your employer’s information to determine how long of a commute you have back and forth each day. This will determine the exact rate of your cheap car insurance.
10. Clean Your Driving Record
Maintaining a clean driving record is the key to getting dirt cheap car insurance from your agent. Your first accident alone may result in as much as a 40% increase on your monthly premium, so driving carefully while on the roadways really can help keep your auto insurance as affordable as possible.
Most auto insurance companies offer a discount for safe drivers, though the exact definition and criteria of “safe” driving and a “clean” driving record will likely vary from agent to agent and company to company. Remember that agents aren’t likely to bring this discount up on their own, so don’t be afraid to ask them about it as long as you feel you have the clean driving record to back it up.
Also remember that if you do happen to get into an accident while on a program like this it’s going to be extremely difficult to regain your safe driving benefits and you’ll certainly see a rate increase at least for the first couple years.
Remember that if you ever get a ticket, going to the driving school may help as well.
11. Buy Car Insurance from the Internet
Many companies now offer a discount for buying car insurance online. This is because Internet sales have fewer overheads and don't require a sales team to close the deal. The insurance company is then happy to pass on any savings to online buyers, which in a lot of cases can be as much as 10%. Purchasing online is virtually risk free, and all payment pages on insurance sites are normally well protected by encryption technology. Your transaction details are safe from prying eyes, and in a matter of minutes you can print off your newly purchased policy. The insurer will then normally post you an official copy of the insurance policy a few days later.
12. Take An Advance Driving Course
Driving classes are offered by a variety of organizations, both public and private. If there are any types of driving classes available through your insurance agent, you may want to consider attending and completing them in order to find cheap car insurance through an existing insurer. If you are unaware of any classes being offered in your area ask your agent; they’ll be glad to help. Be aware that if you take a class and fail, however, you may end up with an increased insurance rate instead.
There are many different types of driving classes, but defensive driving classes are usually the most effective at reducing your car insurance premiums. Note that you will probably be required to show your agent proof of completion (usually in the form of a certificate) in order to be eligible for any benefits, so you won’t be able to fake it.
13. Age-Based Discounts
Many younger drivers may not realize this, but your age is an important factor in setting the exact price of your auto insurance premium. You’ll typically see premiums lowered once you hit the age of 25, with discounts that can sometimes be as high as 20%, though other factors such as marital status and driving record are also taken into consideration.
The lowest premiums associated with cheap car insurance rates are typically given to drivers between the ages of 25 and 55. This age group is considered to be amongst the safest drivers on the road; certainly safer than teenagers and elderly drivers.
Depending on your insurance agent you may also see discounts as you age beyond 25. These discounts usually cease once a driver reaches their mid 50’s, though you may be eligible to receive other discounts on your car insurance at that time.
14. Keep a Clean License
Car insurance companies take driving convictions very seriously and can dramatically increase your car insurance premium, by maintaining a clean license proves to the insurance you are a safe and careful driver.