UPDATED: Mar 13, 2020
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If you’re a smart shopper, you’ll always be looking out for the best offers. You’ll read up reviews online, stockpile newspaper clippings on the best sales and offers in town, and single out the shops that always have the best prices for quality products. It’s not that different if you want to save on auto insurance; Searching for the cheapest quotes online, hunting for the best reviews on auto insurance companies, and generally putting your ear to the wind for information on the best deals around.
But all those methods seem so old fashion. Do they still work? How exactly do you get those amazing discounts to save on auto insurance? Scroll down below to read our top 15 ways to save on your auto insurance premiums.
#1 Know What Auto Insurance Coverage You Need
What you must first do is to make a list of the coverage you want in your auto insurance portfolio. Make sure you know what you are buying, and know why you are buying it for. Do you really need personal injury protection, if you already have health insurance in place? Do you already have other personal insurance coverage that already includes damages to your property (which might include automobiles)? Review all your insurance policies before you buy the auto insurance policy the agent is touting. This way, you will save on auto insurance premiums by not buying duplicated coverage.
#2 Shop Around For The Best Insurance Coverage
You must always do your market research before you put your money down. An easy way will be to simply use the various quoting tools found online. These tools immediately generate the best quotes for a particular auto insurance policy according to your profile. This saves you a lot of time and effort – imagine having to look through the phone book, and calling up the insurance companies one by one for their quotes!
Once you have shortlisted about 3-4 auto insurance companies, it is time to look for reviews about these companies. Although cheap, these companies might not live up to their customer’s standards, or have many hidden costs that are not stated upfront. As such, you may end up paying more – hardly saving your money at all! Go for the insurance companies that have armies of satisfied customers, while staying far, far away from the ones that had their name smeared by disgruntled clients.
#3 Bundle Your Options
If you have bought other types of insurance from one particular insurance company, don’t hesitate to ask about bundled options! Many insurance companies offer discounts and rebates for customers who add-on and combine insurance packages in their current portfolio. If you already have personal insurance policies from this company, check if they offer auto insurance. Chances are that they do, and will give you a hefty discount on your premiums, allowing you to save on auto insurance.
In addition, if your family has more than one car, you should opt to insure all these vehicles under one insurance scheme. Many companies offer discounts for multiple vehicles insured under one policy. Pool the vehicles together under one auto insurance policy, and reap the savings from this!
If you have home owner’s insurance, health, or life insurance; working with the same company to receive all your coverage can save you a lot in bundle discounts.
#4 Move Somewhere Else
According to NAIC, North Dakota is the cheapest place in the country to buy auto insurance. If you are in the mood for a change of scenery and don’t mind the cold prairie, North Dakota might be the place for you! It has an average auto insurance rate of only $500 (approximation). Other states like New York, New Jersey, and Florida might make your wallet bleed (when it comes to auto insurance).
Generally speaking, the states with lower population densities have lower rates of accidents, fraud, theft, and vandalism. These all contribute to lower insurance rates. If you are sick of paying outrageous premiums, it might be time to move.
#5 Drive Less
It should come as no surprise that people who drive less also pay less for car insurance. Why bother moving to another state to save money on car insurance? All you need to do is move back to your parents basement! Cut yourself off from the real world, become friends with your Sims characters and World of Warcraft buddies and never leave the house! If you don’t drive, you don’t need to spend money on car insurance. (We are only half-kidding with this suggestion.)
In addition, you could think about switching in your car for a bike. Not only will you get healthy and start sculpting that beach body of yours for the summer, you will also save money on your auto insurance by biking instead of driving. For a better idea about how this can help you save, read our recent article on the subject.
#6 Defensive Driving Classes
These classes are no-longer made for teenagers after school. Adults (if they are willing to swallow their pride) can also sign up for these. You are never too old to learn new things on the road! (OK, you probably won’t actually learn anything or become a safer driver, but doing so will save you on car insurance!)
Companies offer discounts to clients who have underwent defensive driving courses. These driving courses teaches drivers to drive defensively, and this apparently decreases the probability that these defensively-trained drivers of getting into an auto accident. If you have certification on these courses, don’t hesitate to take it out, and use it to get better quotes for your insurance package.
If you have not attended this course, go take it up! It’s easy to find these courses online – simply do a quick search, and you’ll find a whole list of certified defensive driving trainers willing to teach you about defensive driving. You’ll get to know a vital skill, and get better quotes as well!
#7 Modify Your Deductibles
You should also consider the amount of deductibles you are willing to pay when you buy your auto insurance – they can help you save on auto insurance. All insurance companies will require you to agree on the amount for your deductibles, and this amount will have an effect on your premiums. Determine the amount of deductibles you are willing to pay – the higher the deductible, the lower the premium. If you’re sure that you won’t get into any auto accident for a very long time, go ahead and increase the deductibles – you’ll eventually save money if you manage not get into any auto accidents because of the cheaper premiums.
#8 Get Membership Discounts
If you are a member of AAA, AARP, Chamber of Commerce, Better Business Bureau, etc., you are most likely eligible for auto insurance discounts! Make sure to ask your auto insurance agent for a list of organizational discounts. Its more than likely that you are part of some club that will grant you a sweet auto insurance price cut. We aren’t saying that your AA (Alcoholics Anonymous) participation will save you on car insurance, but some other groups might!
#9 Drive Hybrid Vehicles
“Going green” is a new buzzword that has been sweeping the nation for years. Basically, what it means is to be more environmentally friendly. If you stop driving your Hummer and get a Toyota Prius, you will be eligible for auto insurance discounts. Hybrid car owners save up to 10% on their auto insurance costs… just ask your insurance agent about it. It’s their way of being socially-responsible.
Hybrid vehicles can open up an array of discounts you can receive. Traveler’s recently announced a 10% discount available to hybrid drivers in 44 states. I wouldn’t be surprised to see other auto insurance providers to follow suite.
With President Obama’s new focus on green platforms, the discounts available to hybrid drivers, and the selection of hybrid cars will likely grow. Expect to see more incentives from the government to encourage people to drive hybrids.
And don’t forget about saving on gas! Better mileage can save you thousands of dollars over the years.
#10 Reduce Coverage on Older Cars
Older cars, and cars that remain garaged don’t necessarily need all that coverage. The most important vehicles to cover are the daily drivers, the cars you spend the most time in. If you have a collectible car that sits in the garage all day collecting dust, or a convertible that you only drive in the summer time, you might want to ask your insurance agent about seasonal insurance packages.
#11 VIN Etching
Here is a simple countermeasure to car theft that many people have never even heard of. It involves engraving your vehicle’s VIN number into your windshield and car windows. Apparently, when potential thieves see this on the car, they shy away and go steal another vehicle. Who needs a lo-jack?! Just get a VIN etching instead!
#12 Get A Low Risk Job
Mentioning your “low risk occupation” to your insurance agent can save you a bundle. Teachers, accountants, librarians, and other “boring” professions can expect to pay the least. If you are sky diver, race car driver, or any other thing that requires you to live life on the wild side, I would probably keep that to yourself.
#13 Monitor Your Teen
Become the James Bond of parents and spy on your kids behind the wheel. Many auto insurance companies now offer teen driver discounts if you install some type of tracking or camera in your vehicle to watch your teen’s every move. Some might call this invasion of privacy, I call it a good way to save money!
#14 Pay Per Mile Auto Insurance
If you’ve never hear of pay-per-mile or pay-as-you-go auto insurance, now is a good time to educate yourself on it. Many auto insurance companies now allow you to pay for only the time your are behind the wheel. The way they keep track of this is by installing a tracking chip that records miles driven. If you do not drive that much and are not a “big brother conspiracy theorist” who thinks that this is just one more way for the government to keep an eye on you, then you might want to consider this!
#15 Compare Quotes Using 4AutoInsuranceQuote.com
Scroll back up to the top of this page and enter your zip code in the form you see! After filling out a brief, three page questionnaire, you will be matched up with the top insurance providers in the land who will be offering you the best insurance prices imaginable. Out of our long list of 15 ways to save money on your car insurance, this is the one that is guaranteed to save you the most!