8 Ways to Get the Cheapest Car Insurance Rates Possible

InsureRoom

Look for the best rate, and don't overlook smaller insurers that you may not have heard of. None of us want to spend more than necessary on car insurance, but it's not always obvious how to get lower rates. Dozens of insurance companies large and small compete for your business. Many have a surprising variety of policy options, making it difficult to compare policies and find out who offers the lowest auto insurance rates.

Here are eight things you can do to ensure you get good coverage at the lowest possible rate.

1. Don't assume that one company is the cheapest

But no insurer leads the way with low prices for everyone. The cheapest auto insurance company for a person in one location can be the most expensive option for a driver in another state.

The only way to ensure you are getting the lowest rate is to compare car insurance rates. Fee analysis by InsureRoom shows why price comparisons are so important. Here are some of the rates we found for a 40-year-old driver purchasing Collision Damage Waiver for a 2018 Toyota Camry LE. Our hypothetical driver has good credit and a clean driving record, so he got a “good driving” discount. ' from most car insurance companies.

In Florida, State Farm charged an average of $1,766 per year, the lowest rate in the state for a non-military driver. Geico's average price is $239 higher.
In California, it's the other way around: Geico is the cheapest at an average price of $1,458, and State Farm is an average $423 higher.
Progressive is the cheapest option for drivers in New York, averaging $1,298 per year, but is the most expensive option in Florida at $3,015.

2. Don't Ignore Local and Regional Insurers

Just four companies - Allstate, Geico, Progressive and State Farm - control more than half of the nation's auto insurance business. But smaller regional insurers like Auto-Owners Insurance and Erie Insurance often have higher customer satisfaction ratings than the big names and can also have lower auto insurance rates.

3. Find out about

Discounts Insurers give auto insurance discounts, which can mean lower insurance rates for customers who:

Bundle auto insurance with other policies, such as: B. Homeowners Insurance.
Insure several cars with one policy.
Keep a clean driving record.
You pay your entire annual or semi-annual premium at once.
I agree to receive documents online.Owning a car with certain anti-theft or security features.
Are members of specific professional organizations or affiliated groups.

Don't get carried away by the long list of possible discounts. Compare rates from multiple insurers.

4. Work on your credit

Rating is an important factor in the auto insurance quotes you receive, except in some states. California, Hawaii, Massachusetts and Michigan do not allow insurers to use credit to determine auto insurance rates. Insurance companies say customer creditworthiness has been shown to correlate with their chances of filing claims.

Analysis by InsureRoom found that bad credit can increase a person's auto insurance rates by hundreds of dollars a year compared to good credit.(In most situations, a FICO score of 579 or below is considered "poor" credit, but insurers have their own lending models that may have a different limit.)

Improve your credit score and get lower insurance premiums by Pay your bills on time and reduce your debt. Track your progress by regularly checking your credit score.

5. Skip Collision Damage Waiver and Collision Damage Waiver for an Old Car

Comprehensive insurance pays to repair damage to your vehicle caused by another car or an object like a fence. Comprehensive coverage pays off to repair vehicle damage caused by weather, animal collisions, floods, fires and vandalism. Vehicle theft is also covered. However, the maximum payout under both policies is limited by the value of the car if it is totaled or stolen. If your car is older and has a low market value, it may not make sense to shell out this type of coverage.

6. Increase Your

Excess When you buy collision damage waiver and collision damage waiver, you can save money by opting for a higher excess. (Third party insurance, which covers damage you cause to others in an accident, doesn't have a deductible).

7. Consider usage-based or pay-per-mile insurance

If you're a confident driver who isn't logged many miles, consider a usage-based insurance program like Allstate's Drive wise, Progressive's Snapshot, or Drive Safe and save by State Farm. By enrolling in these programs, you allow your insurer to track your driving in exchange for potential rebates based on how much you drive, when you drive, and how well you drive. If you drive less than 10,000 miles a year, you may be able to save money with a pay-per-mile insurance program like Metromile, Allstate's Mile wise, or Nationwide's Smart Miles.

8. Check insurance costs when buying a car

You're probably already considering factors such as fuel efficiency and repair costs when making a purchasing decision, but you should also consider insurance premiums. A InsureRoom analysis of the cheapest cars to insure among the best-selling vehicles found that the lowest insurance rates are for Subaru Outback, Jeep Wrangler and Honda CR-V.