15 Strategies to Save on Car Insurance Costs

Learn 15 strategies that will help reduce your car insurance costs including comparing prices before buying a car and taking advantage of low mileage discounts.

15 Strategies to Save on Car Insurance Costs

Car insurance is needed to protect you financially when you're behind the wheel. Whether you only have basic liability insurance or full car coverage, it's important to make sure you're getting the best possible deal. Wondering how to reduce car insurance? Here are 15 strategies to save on car insurance costs. The first step is to compare prices.

Before you buy a car, compare insurance costs. Buy your home and car coverage from the same insurance company. This can result in a package discount of 5 to 25%. Additionally, some companies may offer a discount on car insurance if you maintain other policies with the company, such as homeowners insurance.

Allstate, for example, offers a 10% discount on car insurance and a 25% discount on home insurance if you combine them. Another way to reduce your car insurance costs is to take advantage of low mileage discounts. If you drive less than the average driver, you may be eligible for a discount. Travelers offers discounts for safe drivers of between 10 and 23%, depending on their driving record. Some insurers will offer a discount if you buy a hybrid or alternative fuel vehicle. Farmers, for example, offer a 5% discount.

GEICO, for example, offers a “potential savings” of 25% if you have an anti-theft system in your car. It goes without saying, but in today's era of increased distractions in the car, it's worth mentioning as much as possible. The more aware you are, the more accidents or traffic violations you can avoid events that increase your insurance rates. If your credit score could improve a little, start by reviewing your credit report to make sure it's accurate. Errors are sometimes found in credit reports, and simply eliminating them can increase your credit score. Other ways to improve your credit score include making timely payments to creditors, paying off debts to use less than 20% of your available credit, and not opening new accounts.

As your credit score improves, you may see lower car insurance costs. Car insurance rates for the same coverage can vary significantly between insurance companies, so if you don't compare prices, you won't know how much you can potentially save. The industry-backed Insurance Information Institute suggests obtaining quotes from at least three insurers to compare car insurance costs and coverage. If data shows that you are a good driver, you can qualify for a discount. For example, if a customer joins the USAA SafePilot program, they can get a discount of up to 30%. Other examples of usage-based auto insurance are Snapshot from Progressive, Drive Safe & Save from State Farm, and Drivewise from Allstate. Successfully completing a defensive driving course approved by your insurer can lead to savings on your car insurance.

For example, a Texas driver graduating from a Geico-approved online defensive driving course can get a discount of up to 10% for three years. In New York, you can reduce your fare by 10% for three years if you successfully complete an approved road safety course. The car you drive makes a big difference in your car insurance premiums. When it's time to buy a new car, make sure it is eligible for car insurance. Most major insurers offer several discounts designed to help reduce the cost of insuring a teen driver.

Avoiding accidents and driving more carefully are some of the best ways to keep your car insurance to a minimum. The risk to the insurer and the cost to the insured generally decrease as drivers age and gain experience. Combining auto insurance and home insurance is the most common scenario, but combining car insurance with renters, condo or mobile home insurance could yield similar results. By combining your auto and homeowners insurance, insuring more than one vehicle under the same policy, or combining your car and renters insurance, you may receive lower costs in your car insurance rates.

Buying a huge SUV may seem exciting, but insuring a 5,000-pound top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost passenger car. Whether you're buying insurance for the first time, renewing coverage, or switching to another insurer, don't overlook the savings you can get by comparing rates from several car insurance companies. Most insurance companies offer discounts to policyholders with auto and home policies, and the packages may apply to other coverages such as motorcycle and boat insurance.

Olivia Davis
Olivia Davis

Hipster-friendly travel trailblazer. Incurable food expert. Incurable analyst. Unapologetic zombie nerd. Certified travel nerd. Total tv expert.

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