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In 2023, car insurance costs increased by 23%. The national average monthly cost of car insurance is $212. With rising costs, finding cheap car insurance requires research and some due diligence. But where do we even start? Here are the top 7 ways to get cheaper car insurance so you don’t have to compromise your financial well-being for protection.
1. Compare car insurance rates
Car insurance companies love to say they have the best deal on the market, but surely not every offer can be the cheapest. Searching for car insurance can become tedious, so try comparison shopping to evaluate multiple quotes and find out which one offers the best bang for your buck. The best way to do this is through trusted comparison sites, such as Insurify.
Comparison sites are virtual agents that will ask you a series of questions to understand your insurance needs. With the findings, they will provide comparisons of the best car insurance deals for you. They will break down any extra fees or add-ons so you know exactly what you’re paying for.
Insurify finds the cheapest car insurance.
Insurify’s A.I.-powered patented technology gives you personalized quotes. It will provide you with rates and all the discounts you qualify for so you can get the most accurate picture of your possible premium. Through Insurify’s comparison shopping, you’ll find rates as low as $29 per month. Saving is that simple.
2. Work on your credit
Unfortunately, only three states don’t allow credit history to affect insurance rates: Hawaii, California, and Massachusetts. Otherwise, having a poor credit score can raise your car insurance rates by hundreds of dollars. Insurers take credit into account to cover potential risks and losses.
Typically, a FICO score of 579 or lower is considered “poor” credit, but this might be different across insurers. Maintain good credit by paying your credit card bills and loan payments on time. In turn, you’ll get lower insurance rates.
3. Buy a cheaper car to insure
Cars vary in fuel efficiency and repair costs, as well as insurance premiums. Generally, smaller economic models are cheaper to insure. Opt for a car that is fuel-efficient and has a smaller engine. The Subaru Outback and the Honda CR-V are among the cars with the lowest insurance rates.
4. Reduce your annual mileage
Insurers tend to factor in annual mileage when offering premiums. The reason is that lower mileage often equates to safer driving and more reliable customers. As miles rack up on a car, the risk of an accident increases. Be completely honest when providing your mileage. If you make a claim and your insurer discover your estimate wasn’t accurate, it may decide not to pay out.
5. Consider pay-per-mile insurance
If you do fulfill the category of someone with low annual mileage, you might benefit from usage-based or pay-per-mile insurance. These are insurance programs that offer discounts based on safe driving behaviors. Programs such as State Farm’s Drive Safe & Save reward good drivers for how much they drive, the time of day they drive, and how well they drive. Comparison shopping through Insurify will help you find these discount programs so you can get the cheapest insurance.
FYI: If you opt for pay-per-mile or usage-based insurance, you’re allowing insurance companies to track your driving behavior.
6. Don’t pay for unnecessary coverage
Insurance companies may offer you more coverage than you need. They may also have costly add-ons, such as new vehicle replacement or windshield repair coverage. Other common coverage options include comprehensive and collision.
Comprehensive covers damages to your car from events other than car accidents, such as a fire or a hailstorm. Collision covers damage to your vehicle from hitting another car or an object like a light pole. These are beneficial to have in case of these accidents occurring, but the coverage could cost more than the car itself. Older cars have lower payouts due to their lower market values, so these coverage options may not be worth it for very low-value vehicles.
Additional coverage might come in handy, but to get cheaper car insurance, fully evaluate what you might need so you’re not paying for more than is necessary.
7. If you have more than one car, consider a multi-car policy
Insurers often offer discounts if you insure two or more cars under the same policy. Of course, this all depends on driving histories and car types, but multi-car insurance tends to be more affordable than insuring each car under an individual policy.
Many factors contribute to car insurance — you don’t have to settle for high premiums. To ensure you’re getting the best deal, be a mindful driver and shopper. By driving safely and lowering your annual mileage, you can opt for pay-per-mile insurance or discounts. A cheaper car is ultimately cheaper to insure as well.
Staying on top of your credit and considering policies that only provide necessary coverage are ways to be a money-conscious shopper. It can be hard to take all these variables into account when deciding which insurance is best for you, which is why comparison shopping through sites like Insurify is the one-stop shop for finding cheap car insurance.
