Car insurance is crucial for any individual because it protects you financially if anything happens to your car or you while driving. However, you may need to deal with rising car insurance rates. According to a 2024 report, auto insurance has increased by 26% since the previous year. Fortunately, there are numerous ways you can lower your premium costs. This guide introduces how to get low-cost auto insurance through 10 effective methods.
1. Compare Insurance Costs
Regardless of whether your annual premium is about to go up, it's always best to shop around and compare insurance costs from various companies every few years before your policy is renewed. By comparing the different policies and rates they offer, you may be able to get cheaper car insurance with just as good or even better coverage.
Be sure to check their creditworthiness before you sign up for the cheaper insurance. Some companies might state they can pay high insurance claims yet lack the financial strength to do so. Check the company's reviews and status on a site that rates the financial strength of insurance companies.
2. Reduce Coverage on Older Cars
If you have an old car that you rarely drive, it may be best to reconsider your coverage for it. For example, you might stop comprehensive or collision coverage if you don't drive the car because these policies repair damage caused by another car or obstruction, the weather or animal crashes.
Additionally, if your premium is more than your car is worth, you can reduce your coverage and review it before renewal if your needs have changed.
3. Take a Defensive Driving Course
Defensive driving courses, safe driving programs and accident prevention courses are all examples of classes you could attend, whether online or in-person, to get lower car insurance rates. Putting effort into being safer on the road shows insurance companies that you value safety and have a lower chance of causing an accident. Some companies may even offer discounts on driver's ed classes and continued education, especially for senior and teen drivers.
Insurance companies typically raise rates for reckless drivers, so proving that you're trustworthy may work in your favor. Just be sure that the course you take is accredited.
4. Maintain a Good Driving Record
Auto insurance providers will likely review your driving record and see how many speeding tickets and other road violation penalties you've received. Depending on what they find, they may lower your rates if you're a safe driver and increase them if you're a risky driver. For your benefit and others, it helps to avoid speeding and other practices that might cause an accident. You might also receive a lower rate or discount if your history with other insurers is violation-free or claims-free.
5. Install Anti-Theft Devices
Some insurance companies offer lower premiums if you have anti-theft devices installed. This is because they reduce the chances of theft and your likeliness to submit a claim for stolen cars or stolen items from a vehicle. The insurance company you work with may be able to inform you which anti-theft devices are effective enough to reduce your insurance costs.
These items might include a GPS tracker for vehicle recovery and car alarms. Before buying them, determine whether the added cost of these devices will be worth lowering the cost of auto insurance.
6. Maintain a Good Credit Score
Some insurance companies may do a credit score check when determining your risk assessment. A higher credit rating shows your ability to make responsible decisions, allowing companies to lower your insurance rates more confidently. If you have a lower credit score, try to improve your credit rating by paying your bills on time each month and decreasing the amount of credit you spend. You should also regularly check your credit report to ensure its accuracy and dispute incorrect information.
7. Keep Insurance Costs in Mind When Buying a Car
One thing to remember when trying to get the lowest car insurance rates possible is that the car you buy may heavily influence it. When you get a fast sports car, it might indicate that you may be driving fast very often, which might increase risks on the road. Compared to a safety-first minivan, a sports car might leave insurance companies offering the safer vehicle a lower cost insurance.
Additionally, if it will be expensive to repair your car or replace parts, your insurance rates need to reflect that. Make sure to consider these factors when buying your vehicle.
8. Ask for Higher Deductibles
Your deductibles are the amount you pay out of pocket before your insurance provider pays the balance for the covered expenses. Be sure to check your state's requirements regarding deductibles. For example, Pennsylvania law restricts individuals from paying deductibles of less than $500 for collision and comprehensive coverage. By paying more than the minimum deductible amount, you can reduce the premium amount.
9. Seek More Coverage From the Same Insurer
Consider taking out more than one insurance plan with your insurer of choice. When becoming a valued member or buying another type of insurance, such as homeowners insurance or pet insurance, some companies might reduce your rates or costs. Some companies may even offer increased discounts and benefits. Aside from getting your car insurance cheaper, you also save time and money compared to buying from different insurance companies.
10. Ask About Their Discounts and Benefits
To ensure you get the lowest car insurance prices, check what discounts and additional benefits the insurance company offers. Be sure to compare the discounts of various companies to select one that helps you save the most money. Although, stay mindful of the rates and coverage they offer simultaneously.
Some insurance companies may even offer you discounts beyond your car insurance. For example, you could receive discounts on traveling, eating at certain restaurants and going to particular theme parks.
Get Lower Car Insurance Rates With AAA
While auto insurance rates have increased recently, you can still take steps to reduce your overall cost of insurance. And in some cases, you may even gain additional benefits that improve your way of life — that's the case with AAA.
At AAA, we make it our mission to enhance your safety, security and enjoyment of life. That's why, in addition to auto insurance, we offer a range of discounts and benefits beyond just your vehicle. We offer discounts on driver's ed classes, traveling, entertainment events and restaurants. To get competitive car insurance rates, become a member today and receive our top membership benefits.
