Did you know you could save up to 34% on your car insurance? Yeah, that’s right, and it doesn’t involve haggling with your car insurance company or personal finance advisor. It all comes down to a bit of due diligence, or what you call comparison shopping.

Comparison shopping is probably the most important tip you’ll learn here today. But don’t get it wrong, there are several other ways of cutting car insurance costs. Hidden from many are obvious factors that can help you save between 12% and 34% on your car insurance.

If you play your cards right, you could be smiling every time you think of your lower car insurance rates. Nothing is to stop you from slashing a couple of hundred dollars off your premiums, as you will learn in today’s post.

Without further ado, let us make saving on your car insurance fun 🙂

How to Save on Your Car Insurance

We’ve listed the following tips in no particular order. Pick and run with whatever tip works for your current situation and move on from there. All in all, the following tips work for the vast majority of drivers.

Also, keep in mind that car insurance companies use various factors to determine your car insurance rates. Having a good grasp of said factors can help you navigate the murky world of car insurance and save big bucks while at it.

Comparison Shopping

Every car insurance company determines the rate they charge you using in-house criteria. This explains why some companies charge more than others for the same type of coverage.

Other insurance companies charge exorbitant premiums simply because the big man must hit that tropical island when the holiday season comes knocking.

Other times, it’s not even the firm’s fault. Times change, and so do car insurance rates. If you’re considering saving on your car insurance, you must do a bit of comparison shopping.

Don’t go with the first offer you find, and for crying out loud, don’t underinsure in the name of saving a buck here or there.

We have the internet nowadays, and you don’t need to leave your house to get car insurance quotes to compare.

And always go with a financially stable insurance company that offers reliable service on time.

Increase Your Deductible

For an average driver, car insurance terms can be pretty confusing. Many drivers don’t even bother checking; they simply go with the minimum state requirement and keep paying the policy premium just to be on the law’s safe side.

But since you’re one of our favorite readers at A Richer You, we know you’re smart and interested in lowering your premiums and save some money. So, what’s a car insurance deductible again?

Well, a car insurance deductible is the amount of money you pay out of your pocket for car repairs after an accident.

Say you agree to pay a deductible of $500, and you’re in an accident that causes $2000 worth of damages to your car.

You’ll pay $500 towards repairs and your insurance company will write you a check of $1500. Makes sense? Good, you’re a quick study.

According to the Insurance Information Institute, paying a higher car insurance deductible cuts your collision and comprehensive coverage premium rates.

If you are unable to cover the deductible when worst happens, it’s time you start creating an emergency fund to cover the cost.

Ask for Discounts!

Who would have thought one way of cutting car insurance costs is merely asking for discounts? It seems relatively easy, but how many times have you wondered about discounts when purchasing coverage?

You might be eligible for several discounts but are missing out simply because you never ask your insurance agent. That’s right; insurance companies offer a variety of discounts on the regular.

Before you sign the papers (or while doing comparison shopping), ask your insurance broker if you’re eligible for discounts such as:

• Multi-policy discounts
• Good driver discount
• Good student discount for ages 16 to 25
• Telematics
• Multi-vehicle discount
• eSignature discounts
• Et cetera

Bet you didn’t know so many different discounts existed? Ask, ask, and ask some more.

Notify Your Insurer of Changes

You probably only talk to your insurance agent when your policy expires. But changes in your driving habits and patterns can save you big money. If you no longer drive to work because you’re retired or working from home (hello, Covid-19), you should pick up the phone and let your insurance company know.

Why? Your car insurance rates may decrease because your daily mileage decreases, and you’re less likely to be involved in an accident. That’s why.

Are you carpooling nowadays? Let your auto insurance agent know. Did you relocate and are now working with a shorter commute? Notify your car insurance provider. No longer have some drivers operating your vehicle? Let your insurance company know because that will lower your premiums.

Moral of the story? Pick up the phone and talk to your insurance agent now. While at it, ask for discounts too 🙂

Good Credit Wins All the Time

What many drivers may not know is that your credit has a direct effect on your car insurance rates.

California, Hawaii, and Massachusetts are the only states that don’t use credit scores to determine car insurance premiums? But all the others do.

This means you should work on paying down your debts and improving your credit score whenever possible because, again, it saves you money!

Get this: drivers with the worst credit scores pay more than twice what drivers with excellent credit scores pay for car insurance. It rounds up to about $1,800 per year. Whoa - let that sink in.

Insurance companies view drivers with bad credit as riskier to insure hence the pricier premiums. Yeah, insurance companies figured out drivers with bad credit file more claims, and the claim payouts are higher than drivers with excellent credit.

Be a Safe Driver

Racing down the street bumping the stereo after downing a fifth of Smirnoff? You’re a lousy driver and probably have an alcohol problem. In fact, you should be off the streets before your DUI claims a life. Or, before your car insurance premiums shoot through the roof.

In all seriousness, are you catching traffic infraction after infraction? Speeding tickets and whatnots? If so, prepare yourself for higher car insurance premiums. And problems with the law.

Bad drivers attract higher auto insurance premiums because - they are risky and more prone to accidents. More risk = higher premiums. It’s a no brainer.

If you’re unaware, your driving record follows you to your insurance meeting. If you have a stellar driving record, you can save between 10% and 23% on average.

If your driving record is poor, most insurance companies will turn you away. That’s right; a bad driving record will make it hard for you to get insurance and earn you expensive premiums if anybody agrees to insure your reckless driving habits.

Bundle Your Insurance & Pay at Once

Lastly, go big and save big. You can make huge savings by buying all of your insurance coverage from the same company. Need car insurance, and your homeowner’s coverage is about to renew?

If so, buying both insurance covers from the same company can net you some excellent discounts. Check with your insurance agent and see which insurance coverage bundle can save you big bucks.

If you have multiple drivers in your household, getting multi-policy and multi-vehicle policies can save you money. If you have teen drivers, you can get great student discounts if your kids’ grades are a B average and above.

Student discounts usually last until your child is 25 years old. The deals are generous too, with many companies offer between 1% and 39% off. If your kid is 16 years old today, just imagine how much you could save by the time they are 25 years old? It’s a lot, right?

How are you cutting your car insurance costs? Please share in the comments.