Did you know you could save hundreds of dollars per year just by switching your car insurance company?
If you work from home or don’t drive your car often, you can even qualify for a premium for low mileage drivers.
I reached out to my car insurance and asked them all the ways I can save money to lower my premium. They shared a lot of helpful info with me that I’m sharing with you today. This is a must-read!
Check out these nine money-saving tips that will help you save thousands on car insurance.
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1. Lower your bills and save money (I saved $290)
Billshark is a MUST for anyone who has a cell phone, cable, internet, or insurance bill and wants to lower their bill.
And trust me, it works because I’ve used it myself on 3 different bills and I’ve saved $290.
Here’s how Billshark works:
- Send copies of your bills to Billshark. (I did this by uploading an online PDF of each bill).
- Billshark negotiates all of the bills you send in.
- You get notified if Billshark was successful. If they are, they take 40% of the savings. Ex. Billshark saved me $290 over the course of 6 months, so I pay them $116. I can do this in a monthly payment plan or all at once.
It’s definitely worth the savings and it was such an easy process.
2. Be over 25 years old
Your car insurance will go down dramatically once you hit this magical age.
This is the age insurance agencies mark the age of “responsible” driving, so you pay less than someone who is 16 years old and just got their license.
16-year-olds may be more prone to get into more accidents (especially with texting and driving on the rise), so they have to pay more.
Just make sure you don’t get into any accidents before this age (or after!) and your insurance will be incredibly cheap, especially if you have an older car.
3. Compare insurance company rates
Get multiple quotes for your car in the area and sign up for car insurance with the company offering the lowest premium.
After comparing quotes, see who will also give you the most discounts.
You may find that one agent has a cheaper quote, but that another agent with a more expensive quote offers more discounts.
For example, even though I already have car insurance, I decided to shop around to see what rates would be for my car with different agencies.
Agency #1 quoted me $150/month for full coverage on my 2019 Toyota Corolla Hatchback.
Agency #2 quoted me $90/month for full coverage on the same car.
Agency #2 (which is State Farm) is the cheaper route.
Not only that, I do several things to pay even less, which I’ll include here:
- I’m in their good driver program, where I have a Bluetooth set up in my car that tracks my driving. I get 5% off.
- Bundle discount (I have an insurance policy with my boyfriend, plus a rental insurance policy)
4. Drop full coverage on old cars with little value
When I had a 20-year-old car, I ended up dropping all coverage besides mandatory coverage, and this took my premium down to $40 a month.
I made this move because my old car was worth less than $1,000, so there was no point in me paying for an expensive premium for years.
5. Increase your deductible
Increasing your deductible from $500 to $1,000 can help save quite a few bucks over a year.
Only do this if you are capable of paying that $500 in case you are in an accident.
If you do decide to go this route, I recommend saving up for an emergency fund of 3-6 months of your expenses.
6. Drive responsibly
Avoiding accidents and tickets can help keep your insurance low.
When you get into accidents, your current and future agents will know, and thus your premium will increase.
Texting and using cell phones has increased car accidents tremendously.
To ensure that you do not use your phone when you’re in your car, I recommend putting your phone in the back seat (or even in the trunk!).
If you don’t want to do that, turn off the sound on your phone.
I don’t check my phone when I’m driving because I’ve seen the terrible accidents that people get in that even kill people, so I cannot in good conscience be on my phone scrolling through Instagram while driving.
7. Share a plan with your partner
Combining policies with a loved one will decrease the annual premium.
If you decide to combine your home insurance policy with your car insurance policy, you may qualify for a larger discount as well.
Both you and your partner will save a good portion of the money and you can still pay for your policies separately with your own credit/debit cards.
8. Combine insurance policies
Do you have an auto, house, and life insurance policy?
You may want to consider combining all the policies as you will likely qualify for a pretty good discount.
9. Pay every six months
Paying your premium in full can give you a decent discount.
If you have the money to do so, you might as well since you can save a few bucks.
➡️ What to read next: 50 Ways To Make Extra Money
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How do you save money on car insurance?
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