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For many customers, finding the right car insurance policy can be quite frustrating due to the complexities of pricing, which is complicated further by varying state coverage requirements. In the end, coverage gets quite expensive.
Licensed insurance agents know how the average consumer can lower their car insurance premiums. So, in an attempt to bring transparency to the world of car insurance, here are some data-backed savings tips according to experienced insurance agents:
- 1 1. Don’t Allow Your Insurance Coverage to Lapse
- 2 2. Bundling
- 3 3. Do Proper Research
- 4 4. Get Ahead of the Game
- 5 5. Pay for Your Policy in Full and Upfront.
- 6 6. Shop After Moving
- 7 7. Boost Your Credit
- 8 8. Buy an Older Vehicle
- 9 9. Provide Your VIN When Looking for Quotes
- 10 10. Practice Safe Driving
- 11 11. Never Forget that Car Insurance Providers Are Not All Created Equal
- 12 12. Never Stop Looking
- 13 13. Go Paperless
- 14 14. Tout Your Academic Credentials
- 15 15. Consider Usage-Based Insurance
- 16 16. Learn Insurance Industry Lingo
- 17 17. Automate the Insurance Payments
- 18 18. Venture Out on Your Own
- 19 19. Share More Than Your Space
- 20 20. Increase Your Deductible
- 21 21. A budget for Car Insurance
- 22 22. Celebrate Your Age
- 23 23. Don’t Be Left Out in the Rain
- 24 24. Be Knowledgeable of the Local Traffic Laws
- 25 25. Factor in More than Just Price
- 26 26. Be Detailed and Honest
- 27 27. Baby Your Vehicle
1. Don’t Allow Your Insurance Coverage to Lapse
Rates drop 7.7 percent on average, even after being insured for just a year. The discount that most insurance companies provide for maintaining continuous coverage will depend on the amount of liability coverage on the policy you have. The higher the limit of liability, the better the prior insurance discount is likely to be.
Bundle your car insurance policy with your homeowner’s insurance to potentially save up to $110 annually or bundle your renter’s insurance with your car insurance to save up to $72 annually.
3. Do Proper Research
Take several minutes to learn about the companies, minimum coverage requirements and other factors that apply to your state.
4. Get Ahead of the Game
You should buy your car insurance policy not less than 10 days before you need it activated if you wish to get a better rate. This is particularly beneficial if you know that the policy is up for renewal and you wish to switch to a different provider.
5. Pay for Your Policy in Full and Upfront.
Drivers save $62 annually on average by paying in full as opposed to an installment plan.
6. Shop After Moving
If you are moving to a different state or even ZIP code, you should always ensure that you shop for a new policy. Michigan is the most expensive state when it comes to insurance and it is close to 3 times as expensive as Ohio, which is the least expensive. So, you can enjoy massive savings depending on the state you are leaving, which is why it is important to be informed.
7. Boost Your Credit
Drivers that increase their credit score by one tier can enjoy savings of up to 17 percent off their annual premiums.
8. Buy an Older Vehicle
A 5-year old version of a particular vehicle model is almost 13 percent less costly to insure than its current model year version.
9. Provide Your VIN When Looking for Quotes
Today’s new vehicle now come with alarms from the factory, which means that providing your VIN when getting quotes might translate to you qualifying for an anti-theft equipment discount.
10. Practice Safe Driving
Driving safely is obviously a good idea for both your well-being as well as that of others around you, but you can also save yourself from a potential increase in insurance rates.
11. Never Forget that Car Insurance Providers Are Not All Created Equal
Car insurance providers have different business models targeted at certain types of drivers that pose different levels of risk. It is why you need to find the right fit for your behaviors and needs.
12. Never Stop Looking
It is always advisable to shop around every 6 months to find out whether a new insurance policy or company is a better fit for you and compare car insurance quotes to ensure that you are taking into consideration all the insurance companies and rating factors applicable to your needs.
13. Go Paperless
If you agree to go paperless and sign your policy documents electronically, you can enjoy discounts with some insurance providers, so consider opting in an providing your email address when you buy a new insurance policy.
14. Tout Your Academic Credentials
Listing the highest level of education that you have attained can translate to lower rates since many providers use it as a rating factor and may sometimes offer discounts for college graduates. Check the answer to that question on your policy documents or otherwise, you may be leaving money on the table.
15. Consider Usage-Based Insurance
If you are a careful, low-mileage driver and live close to your place of work, you should consider installing a telematics device in your vehicle for sharing your driving behavior with the insurance provider. Installing such a device on your vehicle can help you enjoy savings of up to 30 percent on coverage based on your driving habits as well as other regulations.
16. Learn Insurance Industry Lingo
Take time to research and read to better understand what you are buying and ensure that it actually matches your needs. When it comes to car insurance, there’s never one-size fits all policy.
17. Automate the Insurance Payments
Consider signing up for electronic funds transfer (EFT) or auto pay instead of receiving a bill. Many insurance providers offer discounts if you do this, which will definitely add up over time.
18. Venture Out on Your Own
If you have been listed as a driver on another person policy for at least 6 months, most insurance providers will offer you a discount if you get your own separate policy.
If you share a residence with a fellow driver, you can combine policies to share the cost of your insurance for greater savings.
20. Increase Your Deductible
You can save about $150 annually by increasing the deductible from $500 to $1,000.
21. A budget for Car Insurance
You should always view car insurance as a significant portion of the total cost of vehicle ownership. Car insurance is actually often the greatest car-related expense after the vehicle itself, so ensure that you factor in insurance into your budget and can afford the coverage.
22. Celebrate Your Age
Everybody is aware that some birthdays are more monumental compared to others and it appears that car insurance providers share these sentiments. Drivers often enjoy significantly lower insurance rates after people reach 19, 21, and 25, so consider shopping around for insurance at those times. It is also worth noting that rates drop every year until the driver turns 60 when rates usually level out.
23. Don’t Be Left Out in the Rain
It is always advisable to add coverage to your insurance policy at least one week before a massive storm hits your area to help you avoid having to pay for the damage yourself. Insurance providers can set binding restrictions that prevent agents from selling policies for collision and/or comprehensive coverage as the storm approaches. However, you can still get liability coverage since it is required by all states.
24. Be Knowledgeable of the Local Traffic Laws
Violations and tickets can affect your insurance rates for 3 years from the date you get the ticket. Accidents may affect your insurance rates for up to 5 years from the date of the accident. In California, DUIs can affect your rates for up to 10 years from the date of the incident.
25. Factor in More than Just Price
It is not just about the amount of money you pay. Getting the proper coverage from a reputable insurance provider can protect you from having to pay big in case of a collision or another incident.
26. Be Detailed and Honest
Insurance providers will usually run background checks on your driving record, address, or even your credit when pricing your rate, which means that any guessing can mean that the quote you receive and the final premium differ considerably.
27. Baby Your Vehicle
Filing an expensive claim will not only cost you your deductible but is also one of the quickest ways to increase your rates moving forward. Whenever possible, park your vehicle in a garage where it is protected from potential damage caused by windblown sand, hail, debris, or other harmful objects.
Will is the Executive Managing Editor at Feedster. Will and his team from Full Epic Lead Generation work with venture capital, marketing co-ops, and companies to attract and gain qualified leads.
His primary focus on developing a sales funnel for a company and finding out of the box / growth hacking style ways to convert and drive traffic.