1. Shop Around
There are plenty of car insurance companies out there, and rates vary significantly from company to company. Don’t get fooled by TV ads promising cheap car insurance, and don’t think that big national insurance companies are your only option. There may be regional companies that don’t advertise much that are actually able to get you the lowest rates. Keep an open mind and compare as many companies as possible.
2. Check for Discounts
Whether you’ve already chosen an insurance company or you’re still looking, discounts are an easy way to get cheap car insurance. Most companies offer discounts for bundling multiple insurance policies and good driver discounts, but discounts vary for each insurer.
3. Cut Down on Coverages
Obviously, the more extensive your car insurance coverage is, the more you have to pay for that coverage. If you’re in need of cheap car insurance, you can lower your bill quite a bit by only getting the minimum coverage necessary in your state, which is liability coverage in most states. You can also opt for a higher deductible to lower your premiums.
Keep in mind that while cutting coverages gets the most inexpensive insurance possible, it’s not always a wise decision, as you could end up without the money to pay for repairs in the event of an accident. Consider your car and its value before you cut down on your insurance coverage, especially if you have a newer vehicle.
4. Choose the Right Car
If you need to get a car and want cheap car insurance, make sure to choose a car model that costs less to insure. You can find information about the cost of insuring specific cars online. Higher-value cars, of course, tend to cost more to insure. However, you may be surprised to learn how certain car models compare in terms of insurance costs. The Honda Accord, for example, costs significantly less than the Toyota Camry in terms of average insurance costs.
5. Maintain a High Credit Score
There are a couple states (California, Massachusetts, and Hawaii) that prohibit insurers from using driver credit scores when calculating insurance quotes. In every other state, it’s fair game, and insurance companies that use those credit scores do so because they feel drivers with low scores present an increased risk.
Make sure you pay your bills by their due dates and keep your credit utilization below 30 percent so you can get cheap car insurance quotes. Request your free credit reports from the three credit reporting agencies every year and review them for any errors, as those can also ding your score.
Cheap car insurance helps you cut your expenses every month. Put in the time and the work before committing to an insurance company to get yourself the lowest possible rate.