5 Quick and Easy Ways to Save on Auto Insurance Comments43 Comments

The following is a guest post. If interested in submitting a guest post, please read my
guest posting policy and then contact me.

Why you are paying more for auto insurance

Just like with many other things in your life, you are probably paying more for your auto insurance then you should be paying. Like most people, you fall into the habit of simply renewing your policy when you get your notice in the mail. It is the easiest option after all, right? Some insurance companies don’t even require that you send back anything and automatically renew your policy unless they hear from you.

The same goes for others things in your life too. Once the cable, phone or your car insurance is set up you go into payment autopilot. You get accustomed to paying the same amount each month and since it fits into your budget, you don’t really give it much thought going forward. Unfortunately, this leads to you paying more then you need to for things.

It only takes a few minutes to save a few bucks

The good news is that a little action can go a long way to help you lower your rates and put more money back in your pocket. Getting a better rate on your car insurance is often only a matter of making a call, asking the right questions, or requesting a quote from cheaper insurance companies.

There is no magic formula to get the best rates possible

The truth is that there is no secret way to get a better car insurance rate. And, you probably know what you need to do; you just have to actually do it.

There are a number of effective ways to save on auto insurance that you know about already. So, let’s refresh your memory so you can take action and save money:

1. Don’t wait until renewal time to start your search: If you are serious about getting a better rate start looking now. Don’t wait until your policy comes up for renewal. This will just put you under a time constraint and you will be more likely to renew than take the time to find a new auto insurance policy.

2. Work with a broker: Insurance brokers work for you. It is in their best interest to find you the best rates possible. Since they often work with a number of insurance providers, they can get you a number of quotes from a number of sources, giving you some flexible options to consider. They can also answer any questions to have about your policy and are an effective an unbiased source to use when looking to get information.

3. Get more than one quote: Performing your due diligence as a consumer is not getting one quote before making a decision. If you want to save money, you need to take the time to get a series of quotes. This will give you a good assessment of the type of pricing and policy options that are available to you.

4. Update your driving history and personal information: If something changes in your life, such as moving to a new address, getting a new car, or reaching a milestone age, make sure you update your information with your insurance company. This could have a positive impact on your rates and reduce you monthly payment.

5. Ask for a discount: Believe it or not, sometimes it is just as easy as asking for a discount. Insurance providers tend to offer a wide variety of discounts based on your driving history, age, and other factors. You will never know if you qualify for a discount if you don’t ask. What’s the worst thing that could happen? They say no.

When it comes to getting better rates for auto insurance, we often know what to do; we just need the push to do it. If you want to save money you have to take action and call your provider. Stop leaving money on the table by pay more for car insurance.

If you enjoyed this post, please consider subscribing to the RSS feed or you are welcome to leave a comment below.
By : Adam | 7 Nov 2012
Tweet this article :
Div line

43 thoughts on “5 Quick and Easy Ways to Save on Auto Insurance

    1. Jeremy

      The same can be said of many different contracts. When it expires it is your chance to negotiate a better deal or take your business elsewhere. Use that leverage to your advantage.

      Reply
    1. Jeremy

      Damn that is a huge difference. The first company must’ve been worried about you being a magnet for hit and run accidents. I guess Geico was calculating the risk much differently.

      Reply
    1. Jeremy

      Try living in BC where we can’t even shop around for car insurance. We just fork however how much money the government run insurance company quotes us. On the bright side, it saves us time since we can’t shop around lol.

      Reply
  1. Christopher @ This that and the MBA

    I let our insurance lapse as my wife forgot to make a payment…..and dannnnng they hit you with tons of fees and raised rates…i have to stick it out for 6 months and then call back and they will give me a lower rate…i guess we are tooo risky….lol…we actually found out we didnt have the insurance for 4 days when my wife asked how come our account wasnt any less. Come to find out she didnt pay it!!!!

    Reply
    1. Jeremy

      lol I guess your wife needs to learn the power of automatic bill payment. That sucks that one late payment jacked up your rates. I’ve never dealt with that since they just withdraw it directly from my bank account. This year I’m going to prepay it all with my new cash back card to save some money.

      Reply
  2. Valerie

    I personalyl have never had any luck with using an agent. I think hey are good for you if you need a bundle of insurance, like home insurance, car insurance, life insurance, etc. But if you only need car insurance–look for it yourself without a broker and it WILL be cheaper. I pay $70 a month for 2 vehicles. Most agents want to charge me over $100 at least.

    Reply
    1. Jeremy

      I think part of the reason to use a broker is when you just don’t have the time or know how to shop around yourself. It might be worth using an agent alongside your shopping around.

      Reply
  3. AverageJoe

    I like point #1 especially. People don’t realize that you receive a rebate for unused time on your auto insurance contract. Why keep overpaying while you wait till a new contract?

    Reply
    1. Jeremy

      I’m up for insurance renewal soon, but since I can’t shop around where I live I will end up leaving it off until the last week. It doesn’t really make a difference for me, but I’m good at procrastinating.

      Reply
  4. John

    I recently learned that your premium can go up a lot just based on what state you’re out of. For example states like New York and New Jersey are crazy high because of how many accidents they have. But in surrounding states like Pennyslvania it remains low. I’m curious where California falls in the national average.

    Reply
    1. Jeremy

      It makes a lot of sense that they would base your pricing partly on where you live. In some areas you can’t help but get in an accident eventually do to the abilities of the drivers around you. I know here in BC some people get their car insured in Alberta if they have a relative there. I’m not sure how that works if you get in an accident though.

      Reply
    1. Jeremy

      Yep the more time you have the better chance you have of finding a better deal. Leaving it to the last minute often results in just accepting the first decent sounding offer you find. That’s not always the best offer out there though.

      Reply
  5. Terry

    Good tips. I don’t buy all the bells and whistles when I get car insurance. I just pay for liability coverage coverage.

    So, when I compare prices from other car companies, I really don’t see much savings. I think companies can save you more money when you carry more of the optional coverages.

    Reply
    1. Jeremy

      I agree. The more extras you’re getting the more they can drop pricing here and there. Personally I do go for some of the extra bells and whistlers since it’s better to be safe than sorry. I might have to look that over again when I renew my insurance later this month. Now that I’m taking the train to work it might make sense to cut back a bit on some of it.

      Reply
  6. Stan @DebtsnTaxes

    I totally agree that you should work with a broker. I called around myself and got quotes but didn’t make the change. Then I figured I would try that thegeneral.com (hate their commercials) and that brought me to progressives website. I ended up saving about $600/year. Insurance (auto/home) is one of the easiest ways to save money just by asking. One big thing that helps you save money is by increasing your deductible but that only saves you money if you don’t get into an accident haha.

    Reply
    1. Jeremy

      I’m all for having a high deductible. Since I’ve been in so few accidents it’s a bit of a gamble that I can make. I know that even with an increased deductible I could still easily afford it if I did get in an accident.

      Reply
  7. Holly@ClubThrifty

    Saving money on car insurance is great….but make sure that you have adequate coverage!!! I was in a car accident in 2011 that required 17K of dental work. If I wouldn’t have had underinsured motorst coverage at the level that I did I would have been out of luck. Good coverage is worth the money when you need it.

    Reply
    1. Jeremy

      Wow that is an expensive accident. Most people don’t stop to consider a situation like that. That would be a huge setback if insurance wasn’t covering it. While I do have a high deductible I’m sure to get some of the extra coverage just in case.

      Reply
  8. Cat

    I started looking into it – but then didn’t have a piece of information I needed, and stopped. Guess i should really start again!

    Reply
  9. Kim@EyesontheDollar

    I would also add not to file a claim unless you absolutely can’t afford it. I was not paying attention and hit a pole at the bank. It did $2K in damage (to my car, not the pole) so I turned in the claim, but then the rate went up. I should have just paid for it or driven with a dented up car.

    Reply
    1. Jeremy

      That’s so true. People often turn to insurance not realizing that it will end up increasing their insurance rates. When it’s something small you should just take care of it on your own though.

      Reply
  10. TB at BlueCollarWorkman.com

    When I last got auto insurance I used consumer reports to help me. I picked the company that was ranked the best in not jerking people around, and having reasonable rates. Turned out to be a company I”d never heard of, but, so far so good!

    Reply
    1. Jeremy

      Reviews like that are good, especially if you get in a lot of accidents. You want to make sure you’re dealing with a company that won’t rip you off. If you rarely get in accidents though I’d probably be leaning more towards the cheapest coverage.

      Reply
  11. MoneySmartGuides

    One great reason to shop around with various companies is because each one has their actuaries calculating how much risk they are taking on. Insurance company A might charge you more because they have a riskier client base, while company B may be cheaper because it has a lot of less risky clients and less claims.

    Reply
    1. Jeremy

      Good point. With big companies that might even out for big cities, but still some might end up attracting more or less risky clients due to how they are doing their marketing.

      Reply
  12. justin@thefrugalpath

    This is something that I have been procrastinating on for far too long. My wife’s work offers a discount program with a major agency that offers a discount and we can have it take out of her check. I just have been putting it off for longer than I would like to admit.

    Reply
    1. Jeremy

      Sounds like a sweet hook up to have. You probably should act on that as soon as you can. The longer you wait the more money you’re throwing away.

      Reply
  13. Jason Clayton | frugal habits

    I’ve never worked with a broker for auto insurance. This may be a great idea that I need to explore. Great tips all around. Thanks!

    Reply
    1. Jeremy

      It’s probably worth looking into if you think you can get a better deal. I would think the trick would be to approach them with a few good offers already. That way they can’t try to overcharge you.

      Reply
    1. Jeremy

      Yeah I’d think that would count as comparison shopping provided they cover a broad enough spectrum of insurance companies. I personally haven’t used Progressive since it wouldn’t be useful for my situation. Having rates double is definitely a reason to shop around more.

      Reply
  14. Grayson @ Debt RoundUp

    I constantly work on getting a better deal, but what I have from Nationwide has never been beat. When I go around asking for the same thing that Nationwide provides me, I always get quotes for about $25 – $50 more per month. This doesn’t allow much for me to negotiate with Nationwide, but until I am paying more than other companies, I guess I don’t have to deal with pinning the companies against themselves.

    Reply
    1. Greg Fowler

      The reason you are getting a betting deal with Nationwide is probably because of your loyalty to them. Being loyal to your insurance company has it perks and with my company if they don’t lower the rates I just tell them I am going to shop around then. Later on I get lower rates.

      Reply
      1. Jeremy

        It is convenient that companies like that provide better deals for loyalty. It saves the hassle of having to switch to different companies every year when someone offers a better deal. Taking the time to check anyway is a good idea though.

        Reply
  15. Dave Madden

    I like how you elaborate this issue because it’s an important part of planning and handling car insurance. Yes, at some point of the coverage you may need someone that can assist you with problems than you don’t know so it’s better to have someone than will support you throughout. The effective ways you mentioned like updating the driving history and other personal information is a lot better than keeping the old information because as what you’ve mentioned it may affect the rates of the coverage. It’s important to be detailed in every expense you have not only in your car insurance but also in all aspects. Those small savings may become bigger when you collect it from time to time.

    Reply
    1. Jeremy

      Personally if I were able to choose insurance companies where I live I wouldn’t be too worried about customer service. Since I deal with them so rarely, it would be a small sacrifice to save on monthly payments. Then again I might later regret that if I had trouble filing a claim. And yeah, keeping your information updated is important. I was reminded of this when I last renewed my car insurance and saved money when I told them I wouldn’t be using my car to drive to work anymore.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>