8 Tips to Find Cheap Car Insurance in 2019
No one wants to overpay for auto insurance. However, many drivers are paying more than necessary because they don't know how to find cheap car insurance. Here are some tips to help you pay less for car insurance.
1. Shop Around
There's no one insurance company that has the cheapest rates for everyone. You're going to have to do some research to find out which insurer has the best rates for your particular situation. Fortunately, it's easy to get multiple quotes online or by making a few phone calls.
In the United States, the majority of drivers are insured by one of just four companies: Geico, Allstate, Progressive, or State Farm. You may find a better rate by going with a smaller insurer that operates regionally such as PEMCO or New York Central Mutual. A few minutes of research will likely result in a lower premium.
2. Ask for Discounts
While you're comparison shopping, ask the insurer what discounts are available. You may be offered a discount if you:
- Are affiliated with certain organizations, such as your employer, your alma mater, or military groups
- You are a student with good grades
- Have a good driving record
- Have a car with anti-theft deterrents
- Do not pay your premium in installments
3. Combine Policies
Consolidating your insurance policies with one company, called "bundling", is another way to reduce your premiums. An insurer usually offers a discount for placing both your car insurance and homeowners insurance with that company. A similar discount is often available for having your renters insurance and car insurance with the same insurer. If you own more than one car, getting a multiple vehicle policy also can save you money.
4. Raise Your Deductible
While higher deductible results in a lower premium, be cautious if you're considering raising your deductible. Make sure your deductible is an amount you can afford in the event you have to make an insurance claim.
5. Purchase the Right Vehicle
If you're going to be purchasing a new car, think about insurance rates before buying. The make and model of your vehicle is a factor in determining your insurance rate. In 2017, the Honda Odyssey LX and the Jeep Renegade Sport were among the ten cheapest vehicles to insure.
In addition, cars with certain safety features such as side airbags and automatic seatbelts often garner discounts from insurers.
6. Avoid Unnecessary Coverage
Make sure you're not paying for insurance coverage that you don't need. If you own more than one vehicle, you probably don't need rental reimbursement coverage.
If your car is older, you probably don't need collision and comprehensive coverage. Since both coverages limit their maximum payout to the market value of your vehicle, the cost of collision and/or comprehensive coverage may be more than what you'd receive from the insurer in the event of a claim.
7. Maintain a Good Credit Score
In all but three states, insurers are allowed to make your credit score a factor in determining your insurance rate. If you already have good credit, keep up your good work. However, pay your bills on time and decrease your debts if your credit score needs improvement.
8. Limit Your Coverage to State Requirements
If you're experiencing a period of financial hardship and finding cheap car insurance is a must, consider only getting the minimum coverage required by your state. Usually, such policies are limited to liability coverage. This means that if you are at fault in an accident, the insurer would only pay for the property damage and medical bills of the other parties involved. You would have to pay out-of-pocket for your own injuries or damage to your own property. Also, you need to be aware the amounts that these policies payout tend to be quite low and you would be responsible for covering damages beyond what the insurer paid.