Car insurance is an essential expense, but it doesn’t need to break the bank. Many factors play into its cost – from your vehicle type and make to driving records – all influencing premium costs.
Our analysis revealed USAA to offer the cheapest car insurance policies to military members, veterans, and their families. Other affordable providers include Kemper, Geico and Auto-Owners.
1. Look for discounts
As you shop around for car insurance policies, be sure to inquire about available discounts. They could save you between 5% and 25% off of your total premium costs. Typical good driver discounts apply to drivers with no at-fault accidents or traffic violations over the last three to five years, while those whose vehicle includes anti-theft features or safety features may qualify. In addition, people who commute fewer miles annually (usually under 7,500) often qualify for low mileage discounts.
Other potential discounts include loyalty discounts and safe driving incentives. On average, men pay more for car insurance than women do; however, shopping around can sometimes help close this gap. Major life changes such as moving to a safer city or getting married can have an effect on rates; similarly if your credit has improved then reviewing it might make a difference to what rate is quoted – however never drop full coverage as this could leave you vulnerable against costly lawsuits.
2. Drive safely
Insurance companies consider numerous factors when setting car insurance rates, such as theft rates, repair costs and the likelihood of accidents involving you or other drivers. Furthermore, your car’s make and model as well as age and driving history of everyone on your policy all play a part in how much you pay in premiums.
An accident-free driving history can save money on car insurance premiums. If this describes you, inquire with your insurer about a safe driver discount – most insurers give those who go a certain time without making a claim a bonus discount; though the size and timing can differ considerably.
Some auto insurers offer drivers an opportunity to evaluate their driving skills and receive a discounted premium with Snapshot apps or devices. These programs allow drivers to become safer drivers who can earn better rates in the future.
3. Bundle policies
Insurance is an unavoidable aspect of car ownership, but it doesn’t need to break the bank. There are a few strategies motorists can utilize in order to reduce their auto insurance rates without sacrificing coverage or customer service.
One way is to bundle home and auto policies with one provider. Some insurers offer bundling discounts of up to 25%, which may significantly decrease premiums. Motorists should always compare quotes to ensure their bundled rate is more cost-effective than purchasing each policy separately.
Saving on auto insurance premiums involves maintaining a clean driving record and taking part in insurer-provided safe driver programs, like State Farm’s Drive Safe & Save and Steer Clear telematics programs that can reduce premiums by as much as 25%. Motorists should choose companies with both lower premiums and high customer satisfaction ratings – this will guarantee they get maximum value from their money spent!
4. Get a quote
No matter whether you are shopping for a new vehicle or simply seeking to save money on existing policies, comparison shopping pays dividends. When making comparisons between insurers make sure you compare quotes for coverages and limits that you require. It is a good idea to check your rate annually as they can fluctuate significantly over time.
Savings may even be possible by dropping coverages you don’t require, such as roadside assistance and rental reimbursement, though experts recommend doing so only after carefully considering all available options and making sure there is enough money in an emergency fund to cover accidents or costly events.
Finding affordable auto insurance doesn’t have to mean compromising on quality or service, provided that you follow these tips. By driving safely and avoiding tickets or accidents, your premiums may drop considerably.