8 Ways to Get the Cheapest Car Insurance Rates Possible

When it comes to car insurance, you want to spend the least amount of money without compromising your safety. However, not everyone knows how to get the best deals.

In this difficult car insurance climate, it’s hard to choose which company to go with. There are so many options and it can be difficult to compare prices. But there is a solution on the way. Insurance companies, large and small, want your business, but many of them have a dizzying amount of policy options. Which one will help you find lower car insurance rates?

Here are a few things to consider when you’re looking for good coverage at the cheapest possible rate.

1. Don’t assume any one company is the cheapest

Looking for the best car insurance company? Well, you’re in luck because there is no single insurer that can be the cheapest for everyone. This means that one person in one place might find theirs to be the most expensive option.

Finding the right car insurance company can be difficult, but there is one way to ensure you’re getting the best rate possible.

Shopping around is essential. NerdWallet analyzed rates for a 40-year-old driver looking to buy full coverage on a 2018 Toyota Camry. We found that driving record and credit score can affect your rate, so be sure to do your research. Below are the rates we found for this hypothetical driver with good credit and a clean driving record:

Drivers in Florida are paying the cheapest rate on the market for State Farm, who charges $1,766 a year on average. Geico charges an average of $239 more– but has military connections.

In California, Geico is the cheapest with a rate of $1,458. State Farm’s average is about $423 higher.

Driving in New York is the cheapest for those with a progressive insurance policy. The average rate is $1,298 annually on average. However, those in Florida pay the most, an average of $3,015.

2. Don’t ignore local and regional insurers

When you know you need auto insurance, it can be hard to decide which company to go with. There are so many options! But it’s important to do your research because some have better reviews than others. Consider smaller regional insurers such as Auto-Owners Insurance and Erie Insurance, which are often less expensive than bigger names like Allstate, Geico, and State Farm.

3. Ask about discounts

The best thing for customers to do would be to take advantage of car insurance discounts, which insurers provide. Discounts can mean lower rates for customers who:

If you have multiple cars, you may qualify for multi-car insurance.
If you have a clean driving record, maintain your premium payment, and allow documents to be delivered digitally, you could save time and money on monthly payments.
If you own a car with anti-theft or safety features or are a member of a particular professional organization or affiliate group, you could also receive discounts on your insurance rates.
Pay their entire annual or six-month premium at once.

It may seem like you have the best deal, but it’s best not to be swayed by a long list of discounts. Compare rates from multiple insurance providers.

4. Provide Your VIN When Getting Quotes

Some cars are equipped with safety features that may reduce the likelihood of them being stolen or damaged. These features may not necessarily be standard on all models and may be found only in new cars. This means you can save some serious cash by having the features of a newer car on your older model.

Don’t forget to ask your insurance company if there are any discounts you can apply for. Older vehicles are less expensive to insure, which means you will save money on your car insurance premiums.

Take the time to read on the next page, our top tips for finding cheap car insurance.

5. Check insurance costs when buying a car

You should consider insurance when selecting your new car. There are many factors to take into account, but some of the most important is fuel efficiency and repair costs. When comparing insurance rates for top-selling vehicles, the cheapest cars to insure are the Subaru Outback, the Jeep Wrangler, and the Honda CR-V.

6. Go Paperless

Going paperless is good for the environment, your wallet, and your insurer. It helps the planet by saving a lot of trees that would have to be cut down and reducing toxic emissions. Rather than sending you a statement several times a month, your insurer can send it all at one time. This saves them money because there are no paper bills to print and mail out.

They forward that cost savings on to you, so it’s a win-win for everyone. Besides, would you rather get even more paper junk mail to sift through and clutter your countertop, or get a smartphone app notification or email instead? Get rid of those unwanted and unnecessary paper bills and save money in the long run with our fast, convenient, and environmentally-friendly direct mail alternative.

7. Bundle All Insurance Policies

Policies grouped together are almost always cheaper than separate policies from different companies. You can bundle homeowner’s or renter’s insurance with auto insurance, or buy an umbrella policy to protect you from any liability the other two policies don’t provide.

Farmers Insurance offered the most discount when it comes to bundling car and home insurance policies in March 2020, at 22.05%. However, USAA was still cheaper than all eight insurers, even with its smaller discount of 3.84%.

8. Avoid Fees

In this new era, insurance companies may add a surcharge to every payment you make or bill they send you. It encourages customers to pay their entire bill in one go, rather than in installments. But what if you don’t want to get your bills in the mail? Farmers Insurance charges customers up to $2 if they don’t receive bills via email, and up to $5 if they don’t have their payment automatically deducted from their bank account.
Did you forget to pay your insurance premium on time? If so, you may be penalized. Farmer’s insurance charges a maximum of $10 for any late payments.