Enter your ZIP code:

Cheaper Car Insurance in 8 Easy Steps

by Penny M. Hagerman

 

How often do you compare car insurance rates? Every two or three years? Only at renewal time? When you buy a new car and need different coverage?

 

According to the National Association of Insurance Commissioners (NAIC), only 20 to 35 percent of us compare rates annually. That means we may be spending a lot more than necessary for the auto policies we have—and sacrificing significant savings that could put money back in our pockets.

To maximize savings, take these 8 easy steps to lower car rates. They'll make shopping for the right insurance easier, and help stretch household budgets further.

  1. Inform the insurance company about recent changes that could add up to savings. Installing anti-theft devices in the car, trading a newer car in for an older one, and working a job closer to home all make additional car discounts and cheaper car insurance rates possible.
  2. Avoid loaning insured cars to friends and family. If they cause an accident, you'll need to file a claim on the policy—which could result in higher rates and deductibles owed.
  3. Pay annual premiums up front. Paying in monthly or quarterly installments, though convenient, usually racks up additional fees, costing more over the life of the policy.
  4. Wait until they're fully licensed to add teen drivers to your car policy. Most insurers extend coverage to teens with permits without listing them as drivers on the policy.
  5. Ask about usage-based or good driver car insurance. Based on measureable data such as speed, acceleration and braking, this type of policy requires the placement of a small tracking device in the car to monitor driving habits—and rewards good drivers with lower rates.
  6. Consider "pay-as-you-drive," or by-the-mile insurance. Offered by a few insurers in an increasing number of states, programs like these reduce premiums for those who drive fewer miles, thereby reducing traffic, pollution and oil consumption in the process—and the risk of car accidents. According to a recent study, almost two-thirds of households would pay less for auto insurance under this type of plan, resulting in an average savings of $270 per car per year.
  7. Hang up the cell phone and drive. Cell phones distract drivers and cause thousands of car accidents a year. For those 73 percent of drivers who take and place calls while driving their cars, accident and insurance rates run much higher. Avoiding this risky behavior can lower insurance rates significantly.
  8. Install daytime running lights—or drive with headlights on 24/7—to increase the car's visibility for other drivers. Doing so gives them time to react when necessary, and might help avoid an otherwise unavoidable car collision.

By taking these 8 steps to cheaper car insurance, premiums can be slashed appreciably, and coverage purchased at the lowest possible price.

List of Articles
No. Subject Author Views
85 Rental Car Insurance: Do You Really Need It? youcomparequotes 17612
84 Auto Insurance: The Secret Weapon for Saving at the Pump youcomparequotes 17943
83 Getting the Cheapest Car Insurance in Your State youcomparequotes 16887
82 Play It Safe for Cheap Truck Insurance Rates youcomparequotes 17322
81 How to Get Discount Auto Insurance youcomparequotes 17693
80 Insurance for Van Lovers youcomparequotes 17385
79 Car Insurance That Fits Your Needs youcomparequotes 17093
78 Online Car Insurance Quotes in 5 Easy Steps youcomparequotes 17276
77 Getting Insured with an Online Auto Insurance Quote youcomparequotes 18294
76 Home and Auto Insurance: Sure-Fire Protection in Unsure Times youcomparequotes 17098
75 How to Keep Teen Car Insurance Quotes at Bay youcomparequotes 19336
74 Choosing Cheap Online Car Insurance That Fits Your Life youcomparequotes 17677
73 Auto Insurance from InsureMe youcomparequotes 17596
72 Car Insurance Comparisons Save You Time & Hassle youcomparequotes 17956
71 Car Insurance Companies & InsureMe Save You Money youcomparequotes 18347
70 Buying and Insuring a New Car youcomparequotes 16728
69 Compare Auto Insurance Rates youcomparequotes 17061
68 Safety Measures Lower Auto Insurance Quotes youcomparequotes 16565
67 Getting Car Insurance Quotes, from Beginning to End youcomparequotes 16663
66 The Car Insurance Quote & Ratings Factors youcomparequotes 17150
65 What's Behind Your Auto Insurance Quotes? youcomparequotes 17264
64 How Cheap Car Insurance Can Save You Money youcomparequotes 16595
63 How to Reduce Car Insurance Prices youcomparequotes 17140
62 Getting Insured with Free Car Insurance Quotes youcomparequotes 17335
61 Auto Owners Insurance & Costly Driving Mistakes youcomparequotes 16650
60 Auto Insurance Cost & Your Ride youcomparequotes 17145
59 How No Fault Auto Insurance Works--or Doesn't youcomparequotes 16921
58 How to Get the Cheapest Car Insurance youcomparequotes 16829
57 Selecting a Car Insurance Company youcomparequotes 17531
56 Finding New Car Insurance Following Cancellation or Nonrenewal youcomparequotes 17138
55 Get the Best Car Insurance Rates Around youcomparequotes 17379
54 Factors That Affect Your Car Insurance Quotes youcomparequotes 16417
53 Child Safety Belts Keep Kids Safe youcomparequotes 17081
52 Speeding and Car Insurance Rates youcomparequotes 16783
51 Not At Fault Car Insurance & Accidents youcomparequotes 16921
50 State Auto Insurance Becoming Available youcomparequotes 17210
49 Auto Insurance Gap Narrowed by Insurance youcomparequotes 17654
48 Car Insurance & Roommates or Family Members youcomparequotes 17235
47 PIP and No-Fault Auto Insurance Reform youcomparequotes 16931
46 PIP and No-Fault Auto Insurance Reform youcomparequotes 16835
45 SUVs: Minor Collision, Major Damage youcomparequotes 17387
44 Severe Weather Driving Tips youcomparequotes 17157
43 Avoiding Aggressive Drivers youcomparequotes 18017
42 Safety Tips & Car Insurance for Teens youcomparequotes 17081
41 Insurance for Cars: It's Your Choice youcomparequotes 17039
40 Car Insurance Quotes Save You Money youcomparequotes 17100
39 Finding & Comparing Auto Insurance Specialists youcomparequotes 17960
38 Safety Features Save Lives & Money youcomparequotes 16859
37 Curbing Auto Insurance Prices youcomparequotes 16399
36 Teen Auto Insurance youcomparequotes 16683
35 Car Insurance: Your Questions Answered youcomparequotes 16734
34 How to Buy Car Insurance youcomparequotes 17367
33 Vehicle Insurance: Covering Any Kind of Car youcomparequotes 16646
32 Truck Insurance for Your Pride & Joy youcomparequotes 16440
31 How Insuring a Used Car Can Save You Money youcomparequotes 17291
30 All-in-One Policies Insure Car & Home Together youcomparequotes 17181
29 Credit Scores & Car Insurance youcomparequotes 17790
28 Classic Car Insurance Protects Your Relic Ride youcomparequotes 16304
27 Reducing SUV Insurance Rates youcomparequotes 16822
26 Good Driver Car Insurance Rewards Safe Driving youcomparequotes 17339
25 How to File an Auto Insurance Claim youcomparequotes 16975
24 Avoiding Deer Collisions While Driving youcomparequotes 17445
23 Cheap Auto Insurance through Safe Driving youcomparequotes 16795
22 Auto Insurance Basics That Save youcomparequotes 17202
21 It's Official - Men Are Terrible Drivers youcomparequotes 18688
20 Car Insurance Quote Saves Money and Stretches Income youcomparequotes 17453
19 Auto Insurance Quote Heavily Dependent on Driver Behavior youcomparequotes 16978
18 Car Insurance Quotes Separate Fact from Fiction youcomparequotes 17238
17 How What You Drive Affects Your Auto Insurance Quotes youcomparequotes 17008
» Cheaper Car Insurance in 8 Easy Steps youcomparequotes 17362
15 Save Hundreds on Your Car Insurance Without Switching to Geico youcomparequotes 16851
14 Your Options in Motorcycle Insurance youcomparequotes 16826
13 The Advantages of RV Insurance youcomparequotes 17201
12 Enjoying the Classics: How to Insure Your Old Relic youcomparequotes 34695
11 Insuring Your Teen Driver youcomparequotes 16959
10 The SR22 & Car Insurance youcomparequotes 16455
9 Auto Insurance & Generic Parts youcomparequotes 17164
8 A Trip Gone Wrong: Summer Breakdown on the Road youcomparequotes 18286
7 Drowsy Drivers, Wake Up! youcomparequotes 16463
6 Cheap Car Insurance Protection You Deserve youcomparequotes 17821
5 Top 8 Safety Picks for Car Insurance Discounts youcomparequotes 17267
4 Drivers: 7 Important Facts about Texting That Could Save Your Life youcomparequotes 21339
3 Buckles: Use Them for Safety, Not for Show youcomparequotes 16768
2 Auto Insurance Quotes youcomparequotes 17228
1 Why You Should Give Thanks -- And Stay Home This Year youcomparequotes 17426
XE Login