4 Tricks to Save Money on Car Insurance in the US
If you own a car, you’ve got to have car insurance. If you’re financing or leasing your car, the bank will require you to have insurance, and most states require a minimum level of coverage for all drivers. Aside from that, it’s good to know you’re protected from liability if you cause an accident and that your car repairs and medical bills will be taken care of if necessary. But car insurance can be really expensive, especially for young drivers or drivers with an accident on their record. Sometimes the monthly insurance premium is more than your car payment! To help you save as much as possible on your car insurance, we’ve put together these 4 tips.
How to get cheap car insurance
Ask the car insurance company about your credit score
You could reasonably expect an insurance company to look at your credit score to determine how likely you are to make your premium payments on time, but a lot of them actually use your credit score as a proxy for how responsible you are in general, including as a driver. If you have a low credit score, make sure you find out if the insurance company will take that into account when they calculate your rate. If you have great credit, you
could use it to your advantage with a company that requests this information.
Drive less and prove it for an extra auto insurance discount
8 of the top 10 car insurance companies in the US consider drivers who log fewer miles to be less risky. You can prove that you’re a low mileage driver to certain car insurance companies that offer electronic monitoring devices, like Progressive’s “Snapshot” or Allstate’s “Drive Wise”. These devices measure a couple of factors to gauge your riskiness as a driver, including distance driven, but don’t collect GPS information (or so they claim). The amount of time you have to have the device installed is different for each company. For Progressive, they only want a 30-day “snapshot” of your driving habits, so it is theoretically possible to use alternative transportation to reduce your mileage during this period and get the resulting discount.
Ask the car insurance company about anti-theft devices
Most insurance companies offer some type of discount for approved anti-theft devices, and the discount may be proportional to the type of device (e.g. small discount for a car alarm, larger discount for an immobilizing device). Ask the insurance company what kind of discount a particular device can get y
ou before you buy the device (or the insurance) – it’s possible that the insurance savings will more than cover the cost of the device.
Pay your auto insurance in full each year
Shelling out a year’s worth of car insurance premiums all at once isn’t fun, but it can save you a decent amount of money if you can manage it. Your monthly premium is not simply 1/12 of your annual rate; it has extra fees and interest added in. If you can’t pay in full, you might be able to get a discount for signing up for automatic payments.