7 Best Ways to Lower the Cost of Car Insurance

Whether you’re looking to buy auto insurance for the first time or to get a better deal on a policy, you need to know what to look for. Having the right type of coverage and adequate coverage can protect you from financial risk if you ever get into an accident.

The following tips will help you decide how to get the best policy for your needs.

Cheap insurance may not be adequate

Finding the cheapest car insurance can lead to problems because the low price could indicate that the company is not financially stable enough to pay its claims. It’s always a good idea to research a company’s reviews online before buying, unless you know the name or have good recommendations from friends.

Medical insurance and the cost of cars and their repairs have increased dramatically in recent years. So having just the minimum coverage is probably not enough in most cases. People are also more willing to sue than before.

Get full for a newer car

If you have a loan on your car, the lender will likely require comprehensive coverage that will pay for any damage to the car. Without this coverage, you will need to have cash on hand or good credit to buy another car.

Electric cars recharge their batteries in San Francisco on March 9, 2022. (Justin Sullivan/Getty Images)

Compare Coverage

Trying to find the best auto insurance company will be easy if all you want is a low premium price. Among the top companies, USAA offers low-cost coverage, but only for active military, reservists, and veterans.

Making the best choice requires comparing the overall package offered by each company. You should consider the cost of the font and the features (options) it contains compared to similar fonts.

Websites that offer car insurance reviews can summarize the details of the best companies. ForbesAdvisor makes it easy to compare major insurance companies because it shows their current prices, benefits, and even complaint level. You’ll find that no two review sites provide the same details, so they probably won’t agree on the best company. You will need to check the reviews on several websites.

Unique options

Options can make a policy preferable to others if it suits your needs or if you think an option might be needed sometime in the future. Here are some options offered by various companies.

  • State farm: Money.com lists this company as the best for young drivers because it offers a 25% discount to drivers who have a GPA of 3.0 or higher. It is America’s largest auto insurance company.
  • Geico: Often insures high-risk drivers and makes it easier to apply.
  • Progressive: Offers discounts for safe driving through an app and has a Name Your Price tool that lets you enter a budget amount and then shows you the options available for that price.
  • Erie Insurance: Provides carpool coverage and rate lock, which keeps your monthly cost level longer.
  • Automobile Owners Insurance: Has 12 different discounts, including three for students.
  • Friendly: Offers dividend policies.
  • At national scale : Has software – Smartmiles and Smartride – which offers discounts for safe driving habits. This company offers per-mile insurance, which is great for drivers with limited driving habits.
  • Allstate: Covers cars with high value and custom fitments, as well as classic cars.

Another feature offered by some companies is accident forgiveness, which is available in most states. This means that the insurer will forgive the driver his first accident when the driver was at fault. According to getjerry.com, most insurance companies won’t renew your policy if you have three or more accidents within 36 months.

Car insurance cost today

According to Bankrate.com, the average cost for full coverage in May 2022 is $1,771 for one year. The cost of average minimum coverage is $545 per year.

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Commuters merge with the southern State Route 73 interchange in Costa Mesa, Calif., on April 21, 2022. (John Fredricks/The Epoch Times)

How to get insurance cheaply

Auto insurance companies typically determine rates by looking at several things. While you can’t change some of these factors, here are some you can work on.

  • Increase your deductible: Most insurers require you to have a deductible of at least $500, which means you’ll pay up to $500 in the event of a claim. Since you only pay a small part of the overall cost, the insurer pays a larger part. By raising your deductible to $1,000 or more, the insurer will lower your rates because you will bear a greater share of the total cost. Remember to have this amount aside in case of an accident.
  • Improve your driving record: If you have multiple tickets, multiple recorded accidents, or a DUI, taking a defensive driving course can lower your rates.
  • Opt for another car: Newer cars, sporty automobiles, frequently stolen cars, etc. are more expensive to insure. Talk to your insurance agent to find out which companies will offer you a lower insurance rate and buy from one of them.
  • Improve your credit score: Statistics show that drivers with weaker credit are more likely to make an insurance claim. Increase your credit score to get better rates. Bankrate reveals that drivers with bad credit can pay about $1,000 more per year than drivers with good credit.
  • Exiting the city or state: More cars in a limited area means more accidents are likely, and therefore rates are considerably higher in larger urban areas. Moving to another state or a more rural area can result in your insurance premiums being cut in half or less. Bankrate reveals that the average cost of comprehensive insurance in New York is $2,996, but only $1,200 in Ohio.
  • Add safety features to your car: The installation of anti-theft alarms, anti-lock brakes, etc. on your car can also lower your insurance premium. Check with your insurance company before installing such a feature as only certain brands may be eligible for a discount.
  • Contact an insurance broker: Finding a good car insurance quote can also be done without you doing the work. An online insurance broker such as Gabi or an independent broker such as RamseySolutions can do this for you. A broker will get several best deals for you from which you select the one you want.

Other discounts are also available. Talk to your insurance agent to see if there are any discounts you can get, such as age, years with the company, military service, etc. Bundling policies can be another option, as companies give discounts if you have more than one policy with them, such as a home or renter’s insurance policy.

The Epoch Times Copyright © 2022 The views and opinions expressed are solely those of the authors. They are intended for general informational purposes only and should not be construed or construed as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or other personal finance advice. Epoch Times assumes no responsibility for the accuracy or timeliness of the information provided.