5 SMART Ways You Can Easily Reduce Your Car Insurance Costs

Money Matters Editor By Money Matters Editor 5 Min Read

We all know that car insurance is legally required for all vehicles. Driving without car insurance can lead to serious consequences, such as huge fines, jail time, or even having your license revoked.

Obviously, driving is a risky activity that needs to be insured and this means every driver needs insurance.

Since car insurance is required for every driver by law, car insurance premiums can eat up a large portion of your income if you are not careful.

SEE ALSO: How To Get A Car Loan On Bad Credit Almost Instantly

How to reduce your car insurance cost

We all agree that insurance is a must as required by law. So, how do you reduce your car insurance costs? How do you ensure you get a better deal on your car insurance renewal?

If you are looking for easy ways to bring your everyday expenses down, below are tips on how to lower the cost of your car insurance. If you have Van, you can also check out our valuable tips on Van Insurance.

#1]. Get multiple car insurance quotes

Before you commit to any insurance company, ask several competing companies for their offers. Before automatically purchasing the least expensive insurance, however, ensure the coverage is equal for all quotes.

Some companies may be able to give you a much lower rate, but may not provide the coverage that you want. Obtaining multiple quotes is an easy way to ensure you receive the best possible deal on your insurance.

#2]. Get a high deductible

A high deductible is an easy way to save on monthly premiums. If you switch from a $250 deductible to a $1000 deductible, you can save up to 40 percent on your car insurance premiums.


Most people only enter a car insurance claim every 11 years, which means a higher deductible can save you thousands of dollars over your lifetime. Just make sure you set aside enough money to cover the deductible if you do get into a crash.

#3]. Look for discounts on your car insurance

Most car insurance companies will offer a variety of discounts. Discounts will vary by company and the area where you live. So, it is good for you to look for extra options and incentives in insurance policy. You may be able to find discounts for multiple drivers insured in the same plan.

Also, you may be able to find discounts for safe driving, discounts for driving less than the average amount, discounts for driving older vehicles, and a variety of others. To get these discounts, all you have to do is ask.

#4]. Pay at once

If you break your insurance premiums into monthly chunks, some insurance companies charge a service fee for convenience. The fee could be as high as $10 per month, which equals $120 per year.

If you do not want to pay the extra money each year, simply pay your entire premium at once or divide it into larger chunks, like two or four payments per year.

#5]. Combine car insurance

Many insurance companies will provide a lower car insurance rate if you also use other types of insurance that they offer. For example, purchasing car insurance, home insurance, accident insurance, and life insurance from the same company may provide you with a discount on all four insurance types.

Saving money on car insurance is not difficult. All it takes is a little research and a few questions that will help you save big.

When you reduce your car insurance costs, you free your money to be used elsewhere, for daily living expenses, or for saving for the future or a rainy day. With just one phone call, you should be able to reduce your car insurance costs by a significant amount.


5 SMART Ways You Can Easily Reduce Your Car Insurance Costs
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  • I guess dropping less important coverage will help in reducing the cost. After all, not every coverage is suitable for everyone. Having a very old car makes sense for dropping the coverage on collision.

  • Insurance is must for everything, but now a days insurance premium rates are so high. This article shares the best practical tips for reducing insurance costs. Thanks for the great article.

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