How to Get Cheap Car Insurance
If you're wondering how to get cheap car insurance, know that the cheapest insurance is not always the best option. However, comparing the rates and policies from multiple companies helps save you money on your car insurance premiums. If you shop with a captive agent rather than an independent agent, you will only get one quote. Learn more here about how to get cheap car insurance rates.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Jul 19, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
Insurance Q&A: “How to get cheap car insurance?”
The cheapest car insurance isn’t always the best choice, as options and coverage can vary greatly among different companies. But a little shopping around can help you save some serious cash on your car insurance premium.
And because car insurance companies change their rates at least once per year, it’s best to shop around with an independent agent annually to ensure you continue to receive the lowest rate.
How do you know you’re getting the best deal?
Simple. Get multiple insurance quotes online or shop with an independent insurance agent. The more quotes you get, the better. There are agents out there who can shop your car insurance rate with over 100 companies in just minutes.
If you go with one of the well-known national insurance companies or a captive agent, you will only get one quote (captive agent vs independent agent).
Sure, they might compare your car insurance rate to other rates, but it doesn’t mean a whole lot if compared to the more expensive ones.
And don’t be fooled by a highly paid actor on TV or a big advertising budget.
The only way State Farm and the other “big guys” can adjust your car insurance rate is by adjusting (or reducing) your coverage…not good.
Raise your Deductibles
Insurers offer deductibles ranging from $0 to $1,000 per physical damage claim. An auto insurance deductible is a form of self-insurance, meaning you insure your own risk, up to the deductible amount. The more you insure yourself, the less the insurance company will charge you.
But be certain to carefully examine your personal finances before making this decision. Raising your deductible to $1,000 and not having enough money on hand to pay for repairs can be a bad idea. And please don’t consider paying your deductible with a credit card.
There may be additional discounts if you add an umbrella insurance policy to your package. This is an easy way for insurers to increase their policy count without spending more advertising dollars per household…and we reap the benefits.
Keep an Eye on your Credit Score
The better your score, the less likely you are to file an insurance claim…those are their words, not mine. However, many studies have been completed by the University of Texas, Austin, that claim to prove a correlation between the two.
Avoid Flashy Cars
If you’re not rich, don’t buy a flashy, expensive, or overly sporty vehicle. The more expensive your car is to repair, the more you will have to pay in insurance. And the faster your car, the more you will have to pay for your insurance.
No one is picking on you here Leadfoot. It just so happens that insurance companies pay number crunchers millions of dollars per year to determine the expected amount of claims using every unique identifier out there (excluding factors that can be considered unfairly discriminatory) to determine your car insurance rates.
What About Discounts?
Nowadays, almost every insurance company uses online software to complete quotes. This software basically asks questions as the agent fills out your quote. These questions always include available discounts such as the good student discount and the good driver discount.
Not every company offers the same discounts, but the more companies you quote with, the higher your odds of getting the cheapest car insurance rate. Be sure to inquire about every possible discount!
Just note that while they may have “up to 40% in available discounts,” they’re meaningless if they start with a much higher rate than other companies!
Lastly, think twice about removing collision and comprehensive coverage from your car insurance policy. Such measures are typically only recommended if you are in a dire financial situation and cannot afford it. Though it could also make sense on an old car with little value.
In conclusion, use the Internet to your advantage. Gather quotes online so you have a good estimate of what you should expect to pay.
Read more: How can I lower my car insurance rate?