Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jun 18, 2020

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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 partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you should know...

  • You should calculate your budget before you start comparison shopping for car insurance
  • If you already have insurance, contact your provider and see what types of discounts you may qualify for
  • Dropping coverage you don’t need or switching to a new provider can lower your premiums

Insurance is a long term investment and is part of smart planning, but it always takes a clever person to devise methods to lower car insurance. Consider the following facts and methods in your quest for affordable rates.

Enter your zip code to compare car insurance rates with the free quote tool now!

Higher insurance premiums have prompted people to buy specific cars which have lower insurance premiums. The category of vehicle and the type of safety features it contains goes a long way in deciding the insurance premium. Unless one is careful, the premiums will burn a hole in the pocket.

Smart planning also includes shopping for lower car insurance. For the past few years, the rates of premiums have been on the rise, and the reason is economic recession and inflation. When a driver is careful, he or she can lower his car insurance a great deal. This is why it’s important to learn how to budget for car insurance both before and after you’ve purchased a policy.

Table of Contents

Shopping Around to Lower Car Insurance

Before settling on a particular insurance provider, it’s always a great idea to shop around on the internet. The main purpose of shopping around is to zero in on a company that is financially stable.

Free auto insurance quotes tools, like the one above, provide comparative quotes from different providers. This helps the policy applicant to sift through different quotes and choose the best from all of them. The price of polices vary from company to company. That is because of the

The price of polices vary from company to company. That is because of the different statistics and rules followed by each company. Getting this information from the company’s website will help one in choosing the policy.

Getting this information from the company’s website will help one in choosing the policy.

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When Price is Least Important

Buying auto insurance provides financial stability to the family. It comes to their aid when in crisis. While shopping around for an insurance company, don’t just look at the price factor. The idea is not only to get hold of the cheapest policy in the market; you also want one that provides maximum coverage and affordability for a particular applicant.

There might be friends, relatives or acquaintances who have bought a policy. It would be a good idea for one to ask them if they are really happy with the customer service of a particular company. Examine the consumer complaints section after checking out the website of the state insurance website.

Some companies have insurance agents who give out accurate information over the phone when the applicant is in doubt. Listen to them carefully, see if they have cleared all the queries, and double-check them on the company’s brochures. Clearing all doubts immediately is an important aspect of shopping around.

Comparing Online to Lower Car Insurance Rates

Physically going from company to company, is very frustrating and time-consuming. One has to pick up the phone book, go through all the local companies, and make individual calls. This problem is easily solved with online car insurance quotes.

Within a matter of minutes, hundreds of quotes are displayed on the website; there you can make a comparative study of different providers and their policies. There are several websites that provide quotes from hundreds of companies all in one platform. It’s all done in a matter of moments when the form is filled pertinently. Some of the features that affect the quote when going online are

  • Name, age and address of the applicant; especially the location
  • Driving record and history
  • Claim History
  • Safety features; if any

How Can One Lower Car Insurance Rates?

A diligent applicant will look out for methods to cut down on his or her insurance policy. Paying for insurance premiums takes up a huge percentage of a family’s annual income. It is always feasible to consider the cost of insurance before buying a dream car.

One should not buy an insurance policy if he or she is not sure how it works. Asking the right kind of questions will be rewarding. After all, there is no point in paying more than necessary. There are several factors that can help lower car insurance.

  • Keeping a good driving record goes a long way in lowering the premium. If the record is bad or if the driver is just starting to forget his lessons in driving, then it will be a good idea to take refresher courses.
  • The type of car bought is the deciding factor in finalizing one’s premium. Sports cars are understandably more expensive to insure than other cars. The risks for accidents on sports cars are considerably higher. However, if adequate safety features are included, the applicant can get a discount.
  • Start with a lower insurance coverage at the beginning of the policy if the applicant is under financial stress. He can later add more coverage to his policy when he gets financially stable.
  • Different states have different requirements and rules regarding the coverage. However, no matter what the car is, or how old it is, there should be an insurance policy on it.
  • Higher deductibles for comprehensive and collision coverage is always a cost saving factor. However, before raising the deductible, make sure that it doesn’t interfere with future financial planning. If the car is really old enough or has come down in the market value, then it’s better to drop off the coverage on those cars.
  • Smaller cars are naturally inexpensive and hence are very cheap to insure. These vehicles are rated under the “International Organization for Standardization” or ISO symbol. All insurance companies should be a member of this service. The companies are assigned a premium according to this particular symbol.
  • Some companies award discounts to drivers who drive within a particular mileage limit. Identify those companies and do business with them.

By using the methods listed above, a driver is sure to find lower insurance rates that still give adequate coverage.

Enter your zip code and compare online car insurance quotes now!

References:

  1. http://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
  2. https://www.allstate.com/tools-and-resources/car-insurance/budget-car-insurance.aspx
  3. http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_tc_browse.htm?commid=46706
  4. http://carinsurance.about.com/od/WaystoSave/a/6-Largest-Car-Insurance-Discounts.htm