Top ways to lower your car insurance premium

Jar of money labeled savings.

Ask a car owner about their auto insurance, and you’ll probably get an answer like this: “It’s fine, but I’m paying too much.” Most of us would like to pay a lower premium to save money.

So, what are the ways to lower your car insurance payment? Insurance companies typically offer a variety of discounts to customers who qualify. The key is knowing if you are eligible for a discount and shopping around for the best deal.

Policies and discounts vary among insurance companies, but generally speaking, there are a few types of discounts that are widespread throughout the industry. As always, it’s important to consult the carrier for discounts in addition to researching quotes and discounts from competitors.

With that said, most car insurance companies offer a discount for drivers who have a clean record for the past three to five years, e.g. no accidents, no moving violations, etc. Typically, if you have an accident or violation that is more than five years old, insurance companies won’t count that against you.

Teenage drivers usually elevate the cost of insurance because of their inexperience, but there is a way to save money with young drivers on an insurance policy. If you have a son or daughter who is a full-time student in high school or college and has good grades, they may qualify for a discount.

Discounts that some insurance companies offer

If a car insurance company also offers homeowners or renters insurance, bundling policies together can be a great way to save money on insurance premiums. Additionally, if you live in a household with other drivers, insuring multiple vehicles under the same policy can also be an economical choice.

Depending on the carrier, certain vehicles may be eligible for an assortment of discounts. For instance, driving a newer vehicle with enhanced safety features or a vehicle with an anti-theft protection device may result in policy discounts.

An increasingly popular option offered by many carriers is usage-based car insurance. These companies have an app or a chip that tracks how much you drive and how you drive. For drivers who are easy on the gas and brakes and don’t drive a significant number of miles each year, it’s a great way to lower the premium.

To find out more about different car insurance companies, check out our car insurance overview on Clearsurance.

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.

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