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 17692
84 Auto Insurance: The Secret Weapon for Saving at the Pump youcomparequotes 18015
83 Getting the Cheapest Car Insurance in Your State youcomparequotes 16966
82 Play It Safe for Cheap Truck Insurance Rates youcomparequotes 17504
81 How to Get Discount Auto Insurance youcomparequotes 17767
80 Insurance for Van Lovers youcomparequotes 17506
79 Car Insurance That Fits Your Needs youcomparequotes 17166
78 Online Car Insurance Quotes in 5 Easy Steps youcomparequotes 17354
77 Getting Insured with an Online Auto Insurance Quote youcomparequotes 18372
76 Home and Auto Insurance: Sure-Fire Protection in Unsure Times youcomparequotes 17167
75 How to Keep Teen Car Insurance Quotes at Bay youcomparequotes 19411
74 Choosing Cheap Online Car Insurance That Fits Your Life youcomparequotes 17756
73 Auto Insurance from InsureMe youcomparequotes 17670
72 Car Insurance Comparisons Save You Time & Hassle youcomparequotes 18035
71 Car Insurance Companies & InsureMe Save You Money youcomparequotes 18426
70 Buying and Insuring a New Car youcomparequotes 16788
69 Compare Auto Insurance Rates youcomparequotes 17114
68 Safety Measures Lower Auto Insurance Quotes youcomparequotes 16620
67 Getting Car Insurance Quotes, from Beginning to End youcomparequotes 16713
66 The Car Insurance Quote & Ratings Factors youcomparequotes 17176
65 What's Behind Your Auto Insurance Quotes? youcomparequotes 17286
64 How Cheap Car Insurance Can Save You Money youcomparequotes 16626
63 How to Reduce Car Insurance Prices youcomparequotes 17163
62 Getting Insured with Free Car Insurance Quotes youcomparequotes 17357
61 Auto Owners Insurance & Costly Driving Mistakes youcomparequotes 16673
60 Auto Insurance Cost & Your Ride youcomparequotes 17169
59 How No Fault Auto Insurance Works--or Doesn't youcomparequotes 16945
58 How to Get the Cheapest Car Insurance youcomparequotes 16853
57 Selecting a Car Insurance Company youcomparequotes 17552
56 Finding New Car Insurance Following Cancellation or Nonrenewal youcomparequotes 17161
55 Get the Best Car Insurance Rates Around youcomparequotes 17402
54 Factors That Affect Your Car Insurance Quotes youcomparequotes 16439
53 Child Safety Belts Keep Kids Safe youcomparequotes 17105
52 Speeding and Car Insurance Rates youcomparequotes 16807
51 Not At Fault Car Insurance & Accidents youcomparequotes 16944
50 State Auto Insurance Becoming Available youcomparequotes 17414
49 Auto Insurance Gap Narrowed by Insurance youcomparequotes 17683
48 Car Insurance & Roommates or Family Members youcomparequotes 17255
47 PIP and No-Fault Auto Insurance Reform youcomparequotes 16954
46 PIP and No-Fault Auto Insurance Reform youcomparequotes 16858
45 SUVs: Minor Collision, Major Damage youcomparequotes 17409
44 Severe Weather Driving Tips youcomparequotes 17186
43 Avoiding Aggressive Drivers youcomparequotes 18048
42 Safety Tips & Car Insurance for Teens youcomparequotes 17102
41 Insurance for Cars: It's Your Choice youcomparequotes 17059
40 Car Insurance Quotes Save You Money youcomparequotes 17121
39 Finding & Comparing Auto Insurance Specialists youcomparequotes 17995
38 Safety Features Save Lives & Money youcomparequotes 16882
37 Curbing Auto Insurance Prices youcomparequotes 16423
36 Teen Auto Insurance youcomparequotes 16706
35 Car Insurance: Your Questions Answered youcomparequotes 16758
34 How to Buy Car Insurance youcomparequotes 17391
33 Vehicle Insurance: Covering Any Kind of Car youcomparequotes 16673
32 Truck Insurance for Your Pride & Joy youcomparequotes 16461
31 How Insuring a Used Car Can Save You Money youcomparequotes 17481
30 All-in-One Policies Insure Car & Home Together youcomparequotes 17280
29 Credit Scores & Car Insurance youcomparequotes 17866
28 Classic Car Insurance Protects Your Relic Ride youcomparequotes 16453
27 Reducing SUV Insurance Rates youcomparequotes 16843
26 Good Driver Car Insurance Rewards Safe Driving youcomparequotes 17361
25 How to File an Auto Insurance Claim youcomparequotes 16999
24 Avoiding Deer Collisions While Driving youcomparequotes 17466
23 Cheap Auto Insurance through Safe Driving youcomparequotes 16818
22 Auto Insurance Basics That Save youcomparequotes 17223
21 It's Official - Men Are Terrible Drivers youcomparequotes 18726
20 Car Insurance Quote Saves Money and Stretches Income youcomparequotes 17475
19 Auto Insurance Quote Heavily Dependent on Driver Behavior youcomparequotes 16999
18 Car Insurance Quotes Separate Fact from Fiction youcomparequotes 17259
17 How What You Drive Affects Your Auto Insurance Quotes youcomparequotes 17032
» Cheaper Car Insurance in 8 Easy Steps youcomparequotes 17383
15 Save Hundreds on Your Car Insurance Without Switching to Geico youcomparequotes 16872
14 Your Options in Motorcycle Insurance youcomparequotes 16848
13 The Advantages of RV Insurance youcomparequotes 17221
12 Enjoying the Classics: How to Insure Your Old Relic youcomparequotes 34728
11 Insuring Your Teen Driver youcomparequotes 16984
10 The SR22 & Car Insurance youcomparequotes 16477
9 Auto Insurance & Generic Parts youcomparequotes 17185
8 A Trip Gone Wrong: Summer Breakdown on the Road youcomparequotes 18320
7 Drowsy Drivers, Wake Up! youcomparequotes 16484
6 Cheap Car Insurance Protection You Deserve youcomparequotes 17860
5 Top 8 Safety Picks for Car Insurance Discounts youcomparequotes 17289
4 Drivers: 7 Important Facts about Texting That Could Save Your Life youcomparequotes 21385
3 Buckles: Use Them for Safety, Not for Show youcomparequotes 16790
2 Auto Insurance Quotes youcomparequotes 17253
1 Why You Should Give Thanks -- And Stay Home This Year youcomparequotes 17472
XE Login