Car Insurance Saving Tips

Car insurance saving tips are important to look out for as many factors go into determining your rates. Safe driving is the main way to save on insurance as even minor accidents can raise prices.

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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 26, 2020

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Here's what you need to know...

  • There are some industry secrets that, by knowing, will help you get cheaper rates
  • If you disagree with an insurance company’s settlement offer, there are some negotiating tips you can follow
  • If you’ve been in an accident, there are some steps to take to try to prevent your rates from rising


Drivers are always looking for ways through which they can save money on car insurance. For this reason, it is important to know the factors insurance firms consider to determine your premiums.

How much can you save on car insurance? Is it worth shopping around for auto insurance? Enter your zip code into the free rate tool to compare online car insurance quotes instantly!

For drivers seeking to save money, car insurance rates are a great place to start! Below are some auto insurance tricks you should know if you want to save on car insurance.

Top Five Car Insurance Industry Secrets You Should Know

 

  1. Bad Drivers Pay Higher Premiums – If you drive poorly, you will pay higher premiums and be labeled a high-risk driver. After your initial at-fault accident, it is industry standard to raise your payments by 40 percent of your insurer’s base rate.
  2. You Will Pay if Your Friend is a Bad Driver – If you give your friend your vehicle and he crashes it, you will have claim compensation from your insurer. You will have to pay any deductibles that apply and your rates will likely increase because you filed a claim.
  3. Check into “Diminished Value – Say your vehicle has been involved in an accident but has been repaired, is it worth the same value as the same vehicle that has not been in an accident? This is a contentious topic but some people say the values are different. You can file a claim with your insurer for that lost value in 14 states.
  4. You May Not Owe Sales Tax On Your Replacement Vehicle – In 28 states, insurers are required to pay for the sales tax when the insured person replaces his totaled vehicle with a new or used one.
  5. The Real Value Of Your Car – The real price of your car may shock you. Car insurance firms do not use the Kelley Blue Book or the NADA value. In place of these, each firm has a unique car values list developed by its in-house team.

The insurer may also find out how much an exact replacement car would cost in local auto shops. However, the company will also accept estimates from suburban areas as realistic estimates.

If you want to save, be ready to research drive for a long time to reach a cheap auto shop.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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Steps to Take if You Disagree with the Insurer’s Value

If you do not accept the value of your car determined by your insurance company, you have a number of options:

  • Find out how much the same exact vehicle costs from at least three auto shops within your area or the insurance company’s operation region and present these quotes to your insurer.
  • Present your vehicle repair and maintenance records to the insurer to show that the vehicle is in a good condition. Show records that indicate the oil was changed after the required miles and the car was regularly checked by a certified mechanic.
  • Ask your insurer for a list of auto shops within your region who sell the same exact vehicle at the price the insurer is claiming
  • If you have been paying extra premiums on upgrades or special parts, ensure that they are also factored in by the company during evaluation
  • If you are still dissatisfied, you can take the step further and consider arbitration or mediation. Going to court is another option you have.

Tips to Prevent Your Premiums from Rising

 

If you are involved in your first accident, find out if the company has a “forgive the first accident” policy. Find out from your insurance company if you qualify for the policy as there are many variables they consider.

  • If you have repaired your car after an accident, check whether you can file for a diminished value claim in your state
  • Request for sales-tax reimbursement from your insurer if it is acceptable in your state
  • If you are switching insurance companies, officially cancel your policy by notifying your insurer in writing in order to avoid being billed in future

Armed with the above tips, you now have to find a good company to insure with.

Use our free search tool at the bottom of this page to find the best car insurance companies instantly. You will get hundreds of quotes immediately after you submit your zip code!

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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