Car insurance is a necessity for drivers to protect themselves, but it doesn’t mean you need to overpay for a policy. Insurance premiums can fluctuate based on factors like your driving history, location and the make of your vehicle. Some of these factors you can control, which can help you cut costs. Here are several ways you can save on your next car insurance policy.
While insurance premiums have risen 56% since January 2020, according to data from the U.S. Bureau of Labor Statistics (BLS), you can still find ways to save. For instance, insurance providers offer different prices even if you purchase the same types of coverage, which makes it more important to shop around.
In fact, according to LendingTree’s recent survey, 92% of consumers who switched insurance providers saved money on their policies.
Shopping around doesn’t need to take hours, but the effort could be well worth it if it means you save hundreds or more on your policy.
To start, see what policies insurance carriers offer in your area and get a quote if possible. Be sure to look at the fine print to find out exactly what your coverage will be. To help you in your research, consider looking at our guide to the best auto insurance companies.
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Many insurance companies may offer a discount if you have both homeowners and auto insurance policies with them. Same if you’re a renter and need a renters’ insurance policy. Or, if you have multiple cars in your household, many insurance companies offer discounts if you insure all your vehicles with them.
Going this route could save you 15% or more, depending on the insurance company.
To help save time, ask your current provider if it offers a bundling discount, then shop around for other companies.
In an effort to get your business, many insurance companies offer myriad discounts. For instance, you might save money for being a safe driver and having certain safety features for your car, such as anti-theft devices.
Other common discounts include getting a quote before your other policy expires, paying for a policy in full, being a member of certain associations and keeping your mileage low each year.
You don’t need to wait until your policy is up for renewal to shop around. If you find a better deal elsewhere, it’s fine to make the switch. Just because you’ve been loyal to a company for years, doesn’t mean you won’t discover a better rate elsewhere.
AAA is considered the best overall auto insurance carrier because of the variety of policies and network of agents available. Depending on where you live, you can access a wide range of services and discounts. You will need to be an AAA member. Once you are a member, you’ll get access to their other benefits, such as roadside assistance and retailer discounts.
Progressive stands out because users can easily get a quote online and be able to understand the discounts available to them. Because of these available discounts, many of their policies tend to be more competitive compared to other national carriers.
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State Farm offers more competitive rates for younger drivers. The company typically has good feedback from customers on their level of service and has a large number of discounts you could qualify for with your policy.
Nationwide offers two programs that may help you lower your premiums based on the miles you drive: SmartRide and SmartMiles. After enrolling into the SmartRide program, you'll automatically get 10% off and up to 40% off based on how safe you are. With SmartMiles, you’ll receive a flexible monthly rate based on how many miles you drive each month, which is ideal for low-mileage drivers.
Prices listed reflect time and date of publication and are subject to change.
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