If you’re looking to save money on car insurance, here are some tips:
1. Compare prices
Compare the prices of different companies that sell car insurance. Get quotes from various insurers, making sure you’re comparing the same type of insurance and the same amount of coverage. Check out this auto insurance comparison tool from NerdWallet.
2. Car insurance discounts
Car insurance companies offer special ways to reduce your premium. Ask your agent to review your possible savings. For example – Allstate offers discounts if your vehicle is new and you are the first owner, and if your car is equipped with an anti-theft device, among others. See more examples here.
3. Look for other discounts
You may be eligible for reduced rates through member organizations, professional or trade associations, alumni groups, your employer, or other affiliations. Some insurance companies offer retiree discounts and loyalty discounts for staying with the same insurer.
4. Bundle insurance policies
You may be able to get a discount if you purchase more than one policy from the same insurance company, such as car insurance and home insurance. This is called “bundling”. This can mean significant savings, according to Experian. Plus, it’s convenient to have your policies in one place.
5. Drive carefully
Traffic tickets and accidents drive up auto insurance premiums. So avoiding them will save you money.
6. Take a defensive driving course
Insurance companies offer a discount to those who take an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their license by taking a defensive driving, accident prevention or other course.
7. Usage-Based Insurance
You don’t drive a lot? Consider purchasing usage-based insurance. This is a new type of auto insurance offered in some states based on miles driven that can save you a lot of money. With pay-per-kilometre coverage, you typically pay a base rate plus a per-kilometre rate.
8. Review your policy for coverage you don’t need
You may not need roadside assistance or car rental coverage. Go through your insurance policy line by line and ask to remove anything you don’t need.