Can You (Really) Save on Car Insurance?

Car insurance. You hate paying for it until you need it. And a few months later you hate paying for it again. Wouldn’t it be nice if you could actually get a cheaper car insurance policy? The ads claim you can save on car insurance just by switching companies, but getting the lowest car insurance rates takes more than choosing the right insurer.

Progressive Insurance boasts that you compare their rates to competitors on their own website. But don’t forget that you may not be seeing the whole picture. Local insurance companies may not be included, and the information Progressive uses for the quotes may differ from other insurers. To really save on car insurance rates, you’ll need to do your own research.

Look for Discounts

Yes, you can buy car insurance on line, but picking up the yellow pages and calling some local agents may be worthwhile. Local agents may offer “group rates” to employees of local businesses, local students, or even members of community groups. If you qualify for a group rate, find out what the discount is and how it compares to one of the rates from a large national insurer. You may qualify for other discounts on certain kinds of coverage—like a break on theft if you install a car alarm or immobilization device.

Negotiate

While negotiating your car insurance policy may not be as black and white as haggling for your new car, you may have some leverage, especially with smaller, more personal insurance agencies. Combining multiple policies (whether auto, home, or other property) is the easiest way to justify a better rate.

Pick and Choose

Just because your car insurance company offers certain coverage options doesn’t mean you need them. If you have an older car that isn’t worth very much, skip the carry comprehensive damage coverage, for example.

Drive Safely, and Pay Your Bills

Clearly, the more accidents and speeding tickets you rack up, the more your insurance will cost you. But insurers are increasingly also relying upon consumer credit reports to set rates. Just one more good reason you should pay those bills on time.

Related Posts

How to Negotiate with Car Salesmen

Tips for Shopping for Your First Car

Best New Cars for College Graduates