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5 Ways to Bring Down Your Car Insurance Premiums

The car insurance cost depends on multiple factors, and on average, car insurance in the United States costs $2,150 per year
PUBLISHED APR 12, 2024
Cover Image Source: Ways to save on car insurance (representative image) | Unsplash | Photo by  Vlad Deep
Cover Image Source: Ways to save on car insurance (representative image) | Unsplash | Photo by Vlad Deep

How to save on car insurance

Image Source: Unsplash|Photo by Nicolai Berntsen
Purchasing a car is a big financial decision (representative image) | Unsplash | Photo by Nicolai Berntsen

Purchasing a car is a big financial decision as it comes with additional costs that a buyer needs to pay. One such cost component associated with owning a car is the car insurance policy. The car insurance cost depends on multiple factors, and on average, car insurance in the United States costs $2,150 per year, as per the analysis done by Forbes Advisor. In a matter of one year alone, the prices of insurance premiums have increased by 20% (December 2023). But there are some strategies and tricks one can explore to reduce the car insurance premium. Here are the most common ways in which you can get cheaper insurance for your car.

1. Shop around and compare insurance policies

Image Source: Unsplash|Photo by PiggyBank
Compare insurance policies (representative image) | Unsplash|Photo by PiggyBank

Insurance companies charge different premiums, and if one takes time to compare the policies one will notice how big the savings can be. As per Forbes, the difference between the most expensive and the cheapest car insurance policy is around $1,821. One can leverage the assistance of insurance brokers. The insurance brokers can help you secure a good insurance deal depending on your requirements and your budget. In addition, buyers can even use websites such as QuoteWizard that provide the functionality to secure quotations from multiple insurance companies so that you can compare and choose the one that fits your pocket.

2. Combine your home insurance policy with your car insurance policy

Image Source: Unsplash|Photo by Tierra Mallorca
Combine your home and car insurance policies (representative image) | Unsplash | Photo by Tierra Mallorca

Consumers who bundle their home insurance policy with car insurance are more likely to stay in business with the insurance company for long tenures. Such consumers act as a steady source of income for the companies. So, to attract such consumers, the insurance companies offer lucrative discounts. One can seek a quote for such bundled insurance policies from multiple vendors and then opt for the most affordable one. If you have more than one car, then you can also bundle all your cars into a single insurance policy to get a cheaper rate.

3. Ask for discounts

Image Source: Unsplash|Photo by Christian Dubovan
Consumers need to ask insurance companies for discounts (representative image) | Unsplash | Photo by Christian Dubovan

All insurance companies have discounts, but these are not applied automatically. You need to ask the company for any discounts available and how to avail those discounts. Some of the most common discounts include; discounts on multiyear policies, discounts on multi-car policies, discounts on paying the entire premium in a single go, discounts for being a safe driver, discounts for having an accident-free record, discounts for having anti-theft and safety features in the car and discount for senior drivers. The discounts mentioned here are not exhaustive and companies have many other cost-saving benefits that one can inquire about directly from them.

4. Pay-per-mile insurance

Image Source: Unsplash|Photo by Alex Mares
Insurance companies have different plans for low-usage cars (representative image) | Unsplash | Photo by Alex Mares

Not all of us drive the car to the same extent as others. Driving the car less means less wear and tear on the car as well as fewer chances of an accident happening. So, insurance companies have come up with a newer kind of policy that is designed to secure low-usage cars. In this policy, the premium of the car is decided based on the number of miles covered by the car in a year. To track the miles, companies plug a device that connects to the OBD port of the car and transmits data around the car’s odometer and other vital stats.

5. Drive safely

Image Source: Unsplash|Photo by Averie Woodard
Driving safely will get you great insurance discounts (representative image) | Unsplash | Photo by Averie Woodard

Insurance companies are always on the lookout for consumers who drive safely. Drivers having a neat driving record means they are less likely to go for a claim. To get the attention of such drivers, insurance companies offer some great discounts. So, if one has an accident-free driving history or has completed a defensive driving course, they can get an additional discount from the insurance companies.

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