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5 Ways to Save Money On Your Auto Insurance

Published September 15, 2021
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quarter being put inside a piggy bank to illustrate auto savings

The right auto insurance policy can help you avoid being saddled with unexpected costs in case of an auto accident, so it is important to choose the coverage that best aligns with your needs.

Auto insurance premium prices vary widely by company and risk factors that are tailored for each driver. Some auto insurance companies charge higher rates than others, but there are several ways to reduce your monthly premiums without compromising your level of coverage.

Combine forces for added insurance savings

Combining auto insurance policies is a great way for families and friends who live together to get a discounted premium. Insurance companies often provide additional benefits when insuring multiple types of vehicles through one company.

In addition, most insurance companies offer discounts for bundling several types of insurance with them. Bundling auto and home insurance policies under the same carrier can save you 5%-25% on premium costs!

Inquire about available discounts

Reach out to your insurance agent and inquire about discounts you may qualify for. Some auto insurance companies offer discounts based on your driving history, academic success, and safer driving course completion.

  • Safe Driving Discounts:  Some auto insurance companies reward consumers who have clean driving records with lower rates because, statistically speaking, safe drivers are less likely to file claims in the future.
  • Academic Success Discounts: If you're still in school and have been maintaining good grades, some companies offer an academic discount if you meet certain GPA requirements. The financial benefit of these discounts can add up over time, so keep those grades high!
  • Driver Education Course Discounts: Some auto insurance companies offer discounts upon the successful completion of an approved safe driving course. An auto safety class is a great way to reduce auto premiums since it shows auto insurance providers that you are dedicated to keeping yourself and your vehicle safe and in top-notch condition.

Invest in safety gadgets for greater insurance savings

A great way to reduce your car insurance premiums is by investing in safety features for your vehicle to reduce the likelihood of theft or damage.

Some insurance companies offer discounts for anti-theft system installation, like an electric immobilizer or anti-lock brakes. Others may even offer discounts for investing in parking sensors or blind-spot monitors to reduce the likelihood of auto damage.

Park your car at a safer spot

Where you park your car at night can have a big impact on auto insurance premiums. Auto insurance companies consider drivers who leave their cars parked in high crime or bad neighborhoods overnight as risky drivers. Next time your park your car, consider parking in a safer area to avoid a higher auto premium.

Compare Insurance Premiums

The best way to see if you are getting the most for your money is by comparing auto insurance rates at least once a year (pssst..we can help!). Leveraging a free tool that can compare auto insurance rates will save you time and effort when shopping around.

For example, our system scans through hundreds of providers' premium rates and finds the most up-to-date rates in your area. Then, it recommends the top 3 quotes for your circumstances and preferred coverage levels.

You can compare and purchase car insurance quotes in a matter of minutes, and don't even need to pick up the phone (unless you want to, of course!).

Keep the following factors in mind when shopping for auto insurance

  • Married couples can expect to pay 4%-10% less than single insurers as they are less likely to be involved in an accident.
  • Typically, auto insurance companies charge drivers over 50 higher auto insurance premium rates as they consider them to be at a higher risk of getting into an accident.
  • If you are a road trip enthusiast, keep in mind that the number of miles you drive in a year can affect auto insurance rates. The more you drive, the higher your auto premiums will be.
  • An insurance company calculates an insurance "score" to help determine the likelihood that you will have an insurance claim. The more likely the insurance company is to have to pay a claim, the higher your monthly premium will be.
  • Your credit score may play a factor in your auto insurance rate. Some companies use your score, credit and payment history, and credit utilization rate as measures of how responsible and financially stable you are.

Auto insurance is a necessity for as long as you own a car. While auto insurance can be fairly expensive, there are ways to reduce your monthly payments. If you follow the suggestions written above, auto insurance payments should be lower within a few months!

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