10 Easy Tips for Saving Money on Car Insurance

Posted on 20. Dec, 2011 by in Your Wealthy Life

Save on car insurance

This is a guest post by YFS who staff writes at Tony’s investment blog.

Everyone has to have car insurance, but it can be a pain to find something that works for you and that you can afford. If you are tight on funds, or if you simply want to save some money, here are ten easy tips for saving money on your car insurance.

  1. Consider the Car – Before you go out and buy a new car, take some time to consider how the model, make, and year will affect your insurance rate. In general, older cars are less expensive (because they often are less expensive to buy) to insure than newer cars. Flashier cars, like brightly painted sports cars are often more expensive to insure.
  2. Consider your Primary Driver – If you can, the oldest family member should be listed as the primary driver. For example, if a wife is older than her husband, the couple might get a lower rate by listing her as the primary driver. The same thing goes with teens who have their own cars, and their parents should be listed as the primary driver.
  3. Be Careful! – If you get into a wreck, even just a fender bender, you will likely see your insurance rate increase. Additionally, each speeding ticket that you get will also have an effect on your insurance rate.
  4. High Deductibles – Choosing a high deductible is one very easy way to lower your car insurance payment. So, if you feel comfortable doing this, go for it. It might not be the best idea if you drive long distances frequently or if you have teenage drivers.
  5. Bundle it Up – Bundling or combining your insurance policies can reduce the overall payment. So, ask your insurance agent about bundling your homeowners (or renters) insurance with your car insurance. If you have more than one insurance company, you should consider moving all of your policies to one company.
  6. Take a Safety Course – Check with your insurance provider to see if taking a safety course, either online or something like defensive driving, can lower your payment. It might waste a Saturday, but it will leave you with more money to spend on subsequent Saturdays.
  7. Reduce the Number of Payments – The less often you make a payment, the smaller the overall amount will be. Monthly payments, for example, often mean that you are paying more fees. Try to pay every three, six, or twelve months to reduce your overall cost. You will have to pay more when you do pay, but you will not pay as much every year.
  8. Remove the Extras – If your current car insurance policy has extras, like roadside assistance, towing, or car rental coverage, you can often remove them. It might be inconvenient the next time you have to change your own tire, but it will save you money. You should always be sure to review the details of your policy because most insurance agents are going to give you the standard policy, which might not be the cheapest.
  9. Ask about Discounts – You should make sure to ask your insurance agent about any discounts. Most agents are good about doing this for you, but it never hurts to ask. Discounts might include being over 50, being in the military, etc.
  10. Drive Less – Many times you will receive a discount on your car insurance if you drive less. For example, you if you can tell your agent you live within five to ten miles of your job, for example. You receive a lower rate because you are at a lower risk of getting into a wreck because you drive less often.

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9 Responses to “10 Easy Tips for Saving Money on Car Insurance”

  1. Lisa @ Cents To Save

    21. Dec, 2011

    Great Tips! Never thought about taking a safety course.

  2. AverageJoe

    21. Dec, 2011

    Like the tips. I took a defensive driving course, and while it didn’t lower my payments, it did help me become a much better driver. Well worth the time.

  3. krantcents

    21. Dec, 2011

    Insurance risk you can control is where you live, how you drive and the car you drive. Controlling these 3 elements will reduce your insurance costs.

  4. Neo

    21. Dec, 2011

    I did not know about the primary driver issue. I will definitely take advantage of that one since my wife’s birthday is before mine. Maybe we will get lucky and get a discount. It also helps that she is a good driver…

  5. World of Finance

    22. Dec, 2011

    Many people are aware of this but your credit score can also effect how much you pay for auto insurance too.

  6. Aaron Hung

    22. Dec, 2011

    Getting married can also lower your rate too 😀 They did that to mine.

  7. Niki

    22. Dec, 2011

    The driving less is a good one. We got our discounted for that reason. Our car is three years old and we have only put 21,000 miles on it.

  8. In the UK there are insurance groupings which really reflect the cost of repairs of a car. So going for a lower rated car, even though it may be sportier, generally also means that your repairs and servicing costs will be lower. This can affect older luxury cars quite badly.

    Under £20,000 the value doesn’t affect the insurance costs too much. Our mileage is only 5000 a year but I don’t think that affects it unless you are doing a very high mileage (maybe 20,000 a year) which may seem chicken feed in the US or Oz but then we live in a small compact country close to bus, train and airport routes ….:-)

  9. UltimateSmartMoney

    23. Dec, 2011

    These are great tips but also shop around and get several quotes. I find that usually Geico has great premium.