9 Easy Ways to Cut Car Insurance Costs

reduce car insurance costs

reduce car insurance costsDriving a car is a daily necessity for millions of Americans, but it’s also becoming an increasingly expensive thing to do.

The price of gas is still high, there are annual state registration fees to pay, and car loan repayments to make, along with a number of other expenses. And with the average price of auto insurance rising to nearly $2,000 a year, all these costs can quickly add up to a lot of cash.

But by following these handy hints and tips, it’s easy to cut the cost of your car insurance and put more money in your wallet:

Increase the deductible

Raising the level of the voluntary deductible you are willing to pay on any claim you have to make can send insurance premiums plummeting. Simply increasing the deductible from $250 to $500 can reduce the price by more than 10%, although it does, of course, mean you’ll have to pay out a little bit more if you were to have a crash.

Find a better deal

The more information you have, and the more insurance quotes you can obtain, the easier it’ll be to find the cheapest price. Use the internet to get hundreds of free car insurance quotes in a matter of minutes, then get in touch with the ones that look the best value for money to see what sort of deal you can get. And always ask what discounts you may qualify for. Some providers give reduced rates for low-mileage drivers, others for certain types of profession, like teachers, while some provide cheaper deals for insuring more than one car on the same policy.

Think about a package policy

It’s always worth getting in touch with your home insurance or life insurance company and asking them for an auto insurance quote too. You might be able to get yourself a big discount for taking out a joint policy – the savings you make on your cheap car insurance could even end up paying for you homeowner policy!

Choose your car carefully

We’d all love to race around in a brand new sports car or top of the range high performance SUV, but as well as being more expensive to buy, these types of car are also much more costly to run, repair and insure. Choose a more modest model and you’ll get a lower premium. It’s also worth thinking about driving a hybrid. Not only is it better for the environment, it’s better for the pocket too, as it can get you up to a 10% insurance discount.

Add security equipment

Many modern vehicles already have alarms and anti-theft devices installed, but if you’re driving a slightly older model, getting these types of security equipment added is a sure way of bringing down the overall cost of your auto insurance.

So now you have a few ideas about how to obtain cheaper car insurance, how do you make sure you keep your premium price down? Quite simply, be a good driver!

Drive safely

The surest way to see your car insurance cost skyrocket is to get into an accident or even pick up a speeding ticket. Motoring violations add points to your license, which ends up adding hundreds of dollars to your insurance costs. And these types of indiscretion can stay on your records for up to five years, meaning you’ll be paying the extra price for years to come.

Get extra qualifications

Take time out to pass a Defensive Driver course. Gaining a certificate only takes a few hours and can help you get a 10% car insurance discount with many providers.

Improve your credit score

Credit ratings play a big part in how an insurer calculates their prices, so paying bills on time and keeping on top of credit card payments is a sure fire way of guaranteeing a lower premium when it comes to renewing your policy.

Become a more efficient driver

Ok, so technically this might not directly impact on your car insurance costs, but it’ll help you become a safer driver, as well as cutting your gas costs, so it’s worth bearing in mind. Simple steps like checking your tire pressure regularly, getting rid of any extra weight from your car before a journey, and sticking to a steady speed rather than accelerating and braking aggressively, will reduce fuel consumption and also make it less likely you’ll get into an accident.

Do you have any tips on reducing car insurance costs?

This is a guest post from Chris Owens who writes about car insurance and car finance for UK-based consumer website Money Super Market


  1. The downside is that most leases come with yearly mileage limits.

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