Finding ways to save money on car insurance is something many of us think about. After all, auto insurance can be one of those expenses that feels like it’s just always there, no matter what. But, what if there were simple ways to cut that bill down a bit? That’s right—getting a discount on your auto insurance isn’t as hard as it may seem. By knowing the right tricks and strategies, you can reduce your premium and keep more cash in your pocket.
Let’s dive into six proven ways to get discounts on your auto policy without compromising your coverage. Whether you’re a new driver or you’ve been on the road for years, these tips can help you find the savings you deserve.
1. Bundle Your Insurance Policies
One of the easiest ways to get a discount on your auto insurance is by bundling it with other types of coverage. Most insurance companies offer multi-policy discounts when you purchase more than one type of insurance through them. For example, if you already have homeowners or renters insurance with the same provider, you might qualify for a significant discount on your auto insurance by simply combining the two policies.
Why does this work? Insurance companies love it when you bring them more business, and they reward you for your loyalty. You might get discounts anywhere from 5% to 25%, depending on the company and the type of coverage you bundle. It’s a win-win: you get lower premiums on both policies and streamline your payments.
If you’re not already bundling, it’s worth checking out offers from your existing insurer or comparing options with others. Just make sure that the bundled policy still gives you the best coverage for your needs.
2. Drive Safely and Maintain a Clean Record
This one’s a no-brainer. Safe driving leads to fewer accidents and claims, which means insurers are more likely to reward you with lower premiums. Most insurance providers offer safe driver discounts for those who have a clean driving record. For example, you might qualify for a discount if you haven’t had any accidents or traffic violations for a certain period, like three to five years.
It’s important to note that some states allow insurance companies to track your driving habits using telematics or apps that monitor your driving behavior. Safe driving habits, such as avoiding sudden stops, speeding, or harsh braking, can lower your premium. On the flip side, getting traffic tickets or being involved in accidents can significantly raise your rates, so it pays to be cautious on the road.
Moreover, some insurance companies offer “Pay as You Drive” or “Usage-Based Insurance (UBI)” programs. These programs monitor your actual driving habits and give discounts for safe driving. If you’re someone who drives fewer miles or drives during off-peak hours, this can also help lower your insurance cost.
3. Take Advantage of Defensive Driving Courses
Another way to lower your insurance premium is by taking a defensive driving course. Many insurance companies offer discounts to drivers who have completed an accredited course. Defensive driving courses teach you how to avoid accidents, stay calm under pressure, and navigate hazardous road conditions. It’s a great way to improve your driving skills and show your insurer that you’re a responsible driver.
These courses are often available online, making them super convenient to complete. Some states even allow you to take these courses to reduce points on your license if you’ve gotten a traffic violation. Keep in mind that the discount you receive from completing the course varies by insurance company, but it’s typically around 5% to 10%.
Additionally, some companies provide a discount for seniors who complete a defensive driving course, recognizing the extra precautions many older drivers take to stay safe on the road. If you’re a senior, it might be worth looking into.
4. Maintain a Good Credit Score
While you may not always think of your credit score when it comes to car insurance, many insurers do. In fact, your credit history can significantly impact your insurance premium. Studies have shown that people with better credit scores tend to file fewer claims, which is why many insurance companies reward them with lower premiums.
If your credit score is low, taking steps to improve it can result in significant savings on your auto insurance. Paying off debts, keeping credit card balances low, and making timely payments can all contribute to a higher score. It might take time, but the rewards are worth it when it comes to your auto policy.
In some states, insurance companies are prohibited from using credit scores to set premiums, but this is not the case everywhere. Be sure to check with your insurer about their credit-based insurance score and see if it’s affecting your rates.
5. Choose a Higher Deductible
When setting up your auto insurance, one of the decisions you’ll have to make is the deductible. The deductible is the amount you’ll need to pay out of pocket before your insurance kicks in to cover the rest of the costs. While a higher deductible may sound a little intimidating, it can actually help lower your insurance premium.
The logic is simple: the higher your deductible, the less likely you are to file small claims. Insurance companies see this as a good thing because it reduces their risk and saves them money. In return, they offer you a discount on your premium. However, be sure to choose a deductible that you can comfortably afford in the event of an accident.
Before jumping into a higher deductible, it’s important to weigh the potential savings against your ability to pay that higher amount if needed. If you’re confident you can cover the higher deductible, it’s a smart move to reduce your premiums.
6. Opt for a Vehicle That’s Cheaper to Insure
Your choice of vehicle plays a significant role in determining your auto insurance premium. Some cars are just cheaper to insure than others, especially when it comes to things like repair costs, safety features, and likelihood of theft. Sports cars and luxury vehicles, for example, tend to have higher insurance rates because they are more expensive to repair or replace, and they’re often targeted by thieves.
On the other hand, family cars, minivans, and sedans are generally cheaper to insure because they have lower repair costs, better safety ratings, and less appeal to thieves. If you’re in the market for a new car, consider looking for one with strong safety features, such as anti-lock brakes, airbags, and anti-theft technology. These features can qualify you for discounts and help reduce your overall insurance cost.
Some insurance companies also offer discounts for vehicles equipped with advanced safety technology, like collision avoidance systems or parking sensors, as they can reduce the risk of an accident.
Taking the time to apply these six strategies can make a significant difference in the cost of your auto insurance. From bundling policies to driving safely, there are plenty of opportunities to save money without sacrificing your coverage. With a little effort and smart decision-making, you can lower your premiums and keep more money in your wallet.
Now that you know how to get discounts, it’s time to put these tips into action. Shop around, compare quotes, and make sure you’re getting the best deal possible.