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Whether you are looking to give your budget a makeover or you’ve decided to review all of your expenses, sooner or later, your attention will likely be drawn to how much you are spending on your car insurance.
Maybe your insurance costs have been slowly inching up each year at renewal. Or, maybe you’ve just added a teen driver to your policy and your insurance premium is starting to resemble your mortgage payment.
This post examines some of the top ways that customers have learned how to lower car insurance costs. If you’re looking for how to save on car insurance, this post has you covered. We looked through many car insurance reviews and found these tips that customers have shared in reviews they submitted to Clearsurance.com. Read on to see the top ways customers said have helped them save money.
Customer tip #1: Shop around and compare quotes to save money on car insurance
This has long been a top suggestion on Clearsurance.com because shopping around and comparing quotes is pretty much the only way that you’ll know what other options are available to you. It’s an important step for anyone interested in saving money on their car insurance. If you’re going to shop for car insurance, make sure to budget some time to get quotes and compare prices between different car insurance companies and find cheap car insurance reviews. It can potentially save you a significant amount of money on your car insurance.
If you’re weighing whether or not it’s worth it to invest the time in shopping around and getting quotes, maybe this experience from a Clearsurance customer will convince you that it’s worth spending the time to get quotes. For four vehicles with three drivers, this customer was able to save $3,500 a year on premiums by shopping around, finally deciding to choose Progressive Insurance. Here’s what the customer had to say:
“I saved $3,500 by putting my car insurance for four vehicles and three drivers out to market through Clearsurance.com. […] My total savings equated to $3,500 a year. I was kicking myself for not paying closer attention and testing the market years ago.” -- insguy
You can read the full review here, which includes considerable detail on competitive pricing and the ease of purchasing insurance online too.
When shopping around, consider getting car insurance quotes from three or more companies so that you can compare prices and have a better chance at finding a better deal. Also, be sure to pay attention to the policy details and make sure they are comparable. Make sure the policies don’t exclude any important coverage that you need.
Policy options such as accident forgiveness and roadside assistance might seem expendable when you’re trying to save money, but make sure to consider how much you’d pay out of pocket if you needed them. Sometimes, it makes sense to pay a few dollars in premium costs for this protection.
Customer tip #2: Bundle your policies to save money on car insurance
Bundling up isn’t just for colder weather, it’s also a very effective way to lower your insurance premiums. By combining your home, auto, and any other riders (such as the valuable personal property riders that cover expensive items like jewelry and electronics) with one insurance company, you may receive a discount on your premiums. Even a simple step, such as making sure that all of your vehicles are on one policy, can save you money. If you like your auto insurance company, see if they offer home insurance policies as a step towards bundling.
Here’s what one customer had to say about bundling policies with Allstate insurance:
“They were friendly and very clear and detailed with how each policy works, what it covers and how much everything would cost. I lumped our auto and home insurance in one deal for a nice discount.” - dsweet (edited for article version)
You can see the review here. Bundling can also help consolidate your bills by having your insurances together on one bill.
Customer tip #3: Use a telematics program to save money on car insurance
This is a newer tactic to save on car insurance, but it’s becoming a popular option with customers. Telematics is a broad, catch-all term that includes vehicle-based tracking devices that have the capability to send, receive, and store data. There are a number of telematics programs for car insurance.
Insurance companies deploy this technology in two formats:
- Either through a device that is installed in your car, or
- Through an app that is downloaded to your phone.
Whichever device type is used, there’s one primary purpose — it keeps track of how you drive.
“How you drive” means that the device will track things such as your speed, how hard you brake, how far your trips are, and the times of day you typically travel. All of these factors have been shown to have an impact on the potential for accidents. Your driving performance will have an impact on your insurance rates.
If you are a good driver who doesn’t do a lot of driving late at night or in the early morning hours, using your insurer’s telematics device could save you money on your car insurance.
Telematics devices have been around for a number of years, but some customers are still wary of choosing to install a device that tracks their driving behavior. If saving money is important to you, these devices can certainly help. Here’s what one customer had to say about Liberty Mutual’s telematics program:
“With Liberty Mutual, I know exactly what I am paying for each month and do not have to worry about my monthly premiums going up. I also enjoy the programs Liberty Mutual offers to reduce my rate including the Right Track program and the discounts for defensive driving education.” – JacDog29 (edited for article version)
Customer tip #4: Consider switching to a “pay as you go” insurance company to save money on car insurance
This is another fairly recent insurance innovation, and with more people than ever working from home due to the pandemic, it might be an option for drivers to consider. Pay-as-you-go insurance companies or low-mileage car insurance programs focus on one of the biggest factors in driving risk — the number of miles driven.
These companies will charge drivers a low set rate that is based on other typical insurance factors, such as where you live and your driving history. Then, the rest of the premium is set on a per-mile driven rate. The more you drive, the more you’ll pay. This method of charging reflects what insurance companies have long realized. The more frequently you drive, the higher your risk for getting into an accident.
If you find that you’re in your car less frequently these days, it might be time to consider switching to one of these “pay as you go” insurance companies. Or, at the very least, make sure that your insurance company knows that your average miles driven has dropped considerably. You could save money on the policy you already have.
The amount that you can save may vary, but some customers will be surprised at how much of a difference a “pay as you go” option can make. Here’s a review from a customer of one of these companies offering “pay as you go” options (Metromile), who was pleasantly surprised at the cost difference:
“I am amazed how much money I'm saving with Metromile. I was insured with another company (think Flo) for 7 years. My car is 18 years old and insurance was ~$50.00/month for liability only. I finally decided to get a new (used) car and got a quote from Metromile just out of curiosity. I thought something was wrong with their website when I was quoted ~$45.00/month as a base rate for BOTH CARS. I drive anywhere from 100-200 miles per month (way less now because of the quarantine). Three months in, my total bill has been under $55.00 each month.” – sfr8 (edited for article version)
You can read this driver’s full review of Metromile savings here.
Remember, you can potentially combine several of these tips for even greater savings. When talking to your insurer about auto insurance rates, ask about other discounts that you might be eligible for, such as a reduction in your premium if you complete a defensive driving course.
Knowing what all of your coverage options are is a key part of getting the best cheap auto insurance.
Hopefully, this post has given you some ideas on how to lower car insurance costs. Take the steps above and start saving in 2021!
Interested in seeing a ranking of the companies customers say are the best in your zip code? Visit Clearsurance’s best car insurance page to find the updated list and read reviews.
Image source: ArtemSh/ shutterstock.com
The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.