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How To Find Affordable Auto Insurance Rates

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Car insurance is a requirement – and not just to protect yourself and others in the event of an accident – but a legal requirement. If you drive a car, you need insurance. Fortunately (and unfortunately), there are thousands of companies which provide automobile insurance and just as many policies from which to choose.  With so many options availalbe, it’s easy to throw your hands up and choose whichever is the cheapest option, or to just stay with the company you have been using for years. Both of those options are easy, but they can also cost you a lot of money in the long run.

So which auto policy is the best? The one that provides quality coverage at an affordable rate.  Sounds easy, right? It’s actually not as bad as it sounds. The following tips will help you find affordable auto insurance rates without sacrificing coverage.

How To Find Affordable Auto Insurance Rates

how to find affordable insurance rates

Insurance doesn't have to be expensive!

Look for one insurance provider for all policies.  If you have more than one car or have other insurance policies such as home owners or life insurance, you may qualify for lower premiums by having all of your policies through one provider.  Multiple policy discounts not only make insurance less expensive but you can take care of all your insurance needs at one location making it an affordable and convenient choice.

Ask for organization affiliations.  Many insurance providers offer a discount if you are a member of a certain organization.  Ask for a list of group affiliations that qualify for discounts, these may include credit unions, certain credit card accounts and colleges groups.

Lower your coverage.  There are certain minimum coverage requirements that must be met in order for your vehicle to be legally insured.  Financed vehicles also have insurance requirements to ensure the vehicle is properly covered while you are making payments to the bank or dealer.  Beyond this, it is up to you how much or how little insurance you carry.  The higher the coverage the higher the premium.  If you lower your coverage and increase your deductible you will see a reduction in your insurance premium. You may even reach a point where it makes sense financially to drop full coverage in lieu of liability only auto insurance.

Shop around.  While car insurance policies are very similar regardless of the provider, they are not exactly alike.  For this reason you must shop around and compare all policies and providers to find the best rates available, and to determine what exactly your car insurance covers. It’s generally a good idea to get several insurance quotes every few months to ensure you are getting the best rates.

Improve your credit.  Did you know that your insurance provider may check your credit history before quoting a price for insurance premiums?  If you have a low credit score as a result of a financial hardship in the past, make every effort to improve your credit before shopping for insurance.  The better your credit score the less money you will spend on insurance premiums.

Be a responsible driver.  Your driving history just like your credit history will play a factor in your premium prices.  A clean driving record is viewed favorably by the insurance provider because you pose a lower risk than a person with a history of accidents, claims or traffic violations.

Security and safety devices.  If your vehicle comes equipped with security and safety devices, make sure the insurance provider is aware of them.  This is true for any devices you may have purchases and installed that reduce the chances of theft or injury.  These devices will reduce the cost of your automobile insurance.

These are just a few of the ways you can lower your automobile insurance rates.  Car insurance is a necessary part of owning and operating a car.  Knowing how to reduce this expense without sacrificing coverage is a great way to save money that can be used elsewhere in your budget.

Photo credit: sylvar


Published or updated January 23, 2012.
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{ 3 comments… read them below or add one }

1 Kris @ Debt-Tips

Shopping around is some important, as insurance companies all have their own formulas. We do this every few years and usually end up saving at least 300-500 each time. You would think being a good customer over time would lower your rate, insurance is truly a strange business.

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2 Jeff Crews

Another great way to find the best car insurance rates would be taking the time to compare car insurance companies. Car insurance companies want your business and will do some interesting things (i.e. lower your rates) to keep your business. However, don’t expect your rates to be lowered with multiple accidents, etc…..sorry.

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3 Assaf

With my car value, I only go for liability only insurance and yet when it is time to renew the policy I take a quote from a competing company and call my current company to see if they can beat that offer. They usually do.

Another thing that I make sure to have is a list of the items I want the policy to cover. This assures that I’m comparing apples with apples.

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