by Christy Bieber | Updated July 30, 2021 - First published on July 25, 2021
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Why pay more for car insurance than you need to? Try these tricks to lower your premiums.
Auto insurance premiums can take a bite out of anyone's monthly budget, but they're an essential expense drivers have to pay. The good news is, there are plenty of ways to lower the cost of car insurance coverag
In fact, taking any of these four simple steps could help ensure your premiums are as affordable as possible.
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
It may come as a surprise, but some cars are much cheaper to insure than others.
It can be easier to find cheap car insurance for vehicles that have lots of safety features. Airbags, anti-lock brakes, and other safety upgrades can significantly reduce the chances of serious (and expensive) injuries in an accident. So cars with these features cost less to cover.
Cars with less expensive parts are also more affordable to insure because repair expenses will be lower if things go wrong. By contrast, expensive vehicles and those more likely to be involved in accidents -- such as sports cars -- may be much more expensive to get insurance for.
Comparing car insurance quotes across multiple insurers is also important if drivers want to keep auto insurance costs low. Shopping around and getting multiple quotes helps to ensure you're working with the company that offers the best policies at the most affordable rate.
Shopping around also helps to prevent a surprise factor that could raise car insurance rates. Some insurers use algorithms to assess which customers are less likely to get insurance quotes, and they charge those drivers more. Not all states allow this practice of "price optimization," but drivers still need to watch out for this.
It takes only a few minutes to get insurance quotes online, and making the effort can save people a bundle.
Drivers who get moving violations or who are involved in accidents are much higher risk to insure. You don't want to end up with premium costs rising because of a speeding ticket or because you get involved in a fender bender and are found at fault.
To avoid having to pay for high-risk car insurance, be as careful as you can to obey the rules of the road. Some insurers will also allow you to download an app that monitors your habits and rewards you for good behavior. If you don't mind giving your insurer more insight into your driving habits, this could help make premium costs much more affordable.
Many car insurance companies offer discounts to motorists who have recently completed defensive driving courses. Insurers believe this type of driver education can help to improve your driving habits and make a crash less likely to occur.
To lower premiums, ask an insurer if you can score savings by completing a class -- and find out which ones are eligible. You could both save on your insurance coverage and potentially reduce the chances of an accident, which is a win-win.
Taking any of these four steps doesn't take much time or effort, but the difference in insurance premium costs can be substantial. So they're worth exploring.
Auto insurance is something that most people don't think about very frequently. While there are several factors that drive people to look to change auto insurance carriers, it is important to educate yourself in order to ensure you select the right coverage for you. The right coverage means not paying for coverage you don't need and not foregoing coverage that would make sense for your personal situation. While price is a major factor, we also consider other factors such as customer service and the claims process when choosing what we think are the best auto insurance providers.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.