How to save on car insurance: Tips & tricks to use ASAP
Do You Need Car Insurance?
The short answer? Yes! Most states require car insurance by law. New Hampshire is the only state where it is not mandatory to hold auto insurance, as long as you are financially sound and can prove that you can take on the cost of property damage or bodily injury in the event of an accident that you happen to cause.
Since car insurance is required for the majority of the US population (as of 2021, New Hampshire’s population was just 1,388,992), it might be helpful to understand what exactly goes into the cost of car insurance — and what you can do to save money on it.
In this article, we will review the cost of auto insurance and how you can save on it while getting the best coverage.
What is the Average Cost of Car Insurance?
On average, Americans pay $148 monthly, or $1,776 annually (shoutout to the founding fathers!), for full-coverage car insurance. That said, the cost of car insurance can vary by hundreds of dollars depending on the provider. We’ve highlighted a few average prices below to help you understand what you may be paying:
- GEICO may cost you $1,297 yearly
- State Farm can cost $1,397 yearly
- Nationwide may cost around $1,383 yearly
- Allstate offers full coverage at $2,438 yearly
This means that the best way to figure out how much you’ll be paying for car insurance — bearing in mind what you can afford to pay — is to get quotes from several different insurance agencies. You can do this by contacting car insurance agents individually or by using Marble’s comparison tool to browse quotes, all in one convenient hub.
How to Save on Car Insurance
So let’s get to the good stuff: how you can save on your car insurance payments! Companies base their car insurance premiums on several factors, so if you understand what goes into your premiums, you’ll be able to get better coverage at a much more reasonable cost.
One thing to keep in mind is the importance of your record. This means that drivers with a higher credit score, good driving history, and no at-fault accident record can get car insurance at lower premiums. While this tends to be the case across the board, keep in mind that insurance rates may differ between states, and a company with the cheapest insurance plans in one state could be more expensive in another.
Marble’s insurance comparison tool can help you lower your auto insurance rates by finding you quotes from multiple insurance providers.
Receive Multiple Quotes
Shopping around can help you discover the best coverage at the most affordable rate. We suggest getting a minimum of three car insurance quotes from different insurance providers and/or different types of insurance companies, such as those who:
- Sell through dedicated agents (agents that sell one carrier’s products)
- Sell through independent agents (agents that sell more than one carrier’s products)
- Sell directly to customers via phone, app, or the web
In addition to getting quotes, it’s always a good idea to ask your friends and family for recommendations and do your own research before making a purchase decision.
And we’ll take this opportunity to again recommend Marble’s very own comparison calculator, which can help you compare car insurance quotes and coverage benefits, and find the auto insurance policy that fits your needs and budget
Another way to save money is to suss out discounts from your provider: Auto insurance companies often offer discounts that can help their customers save money on car insurance coverage. You’ll want to start by checking your provider’s discount page or contacting your insurance agent to get an overall idea of the amount you could save on your auto coverage.
One widely available discount is the multi-car discount for folks with multiple vehicles. This means you could pay lower premiums if all your vehicles are insured by the same company.
Another way you may be able to save money is through car insurance policy discounts based on safety features installed in the car, such as airbags, anti-lock brakes, anti-theft devices, and the like.
It’s a good idea to ask your insurance agent to check if you qualify for low mileage discounts. Some companies also offer discounts if you purchase other policies, such as homeowners insurance, from them. This is called bundling.
We know that car insurance can feel especially pricey to students. But you could be in luck: if you have a strong academic record, you may be eligible for a discount that could lead to a lower overall premium.
And finally, you might want to consider the type of vehicle you drive. Sometimes, insuring a brand-new car is less expensive than insuring an older car, which could incur higher rates.
Don’t Forget To Monitor Your Credit Scores
Credit scores often impact insurance rates. Because insurance companies believe that consumers with good credit history are less likely to make insurance claims, your credit rating is used to determine your monthly auto insurance premiums. In short: the better your credit score, the more likely you are to receive a reasonable rate.
If you have a low credit score, there are a few ways to improve it to receive lower rates. You’ll want to pay your bills on time and optimize your credit utilization rate (aka the amount of credit you are using) by paying off your credit card and any other debt. It’s worth going over and even streamlining your expenses in order to maintain a healthy cash flow. To ensure that all your info is up-to-date and accurate, it’s also helpful to check your credit report at regular intervals. No one wants to deal with identity theft or any other account issue!
Remember: Drive Safe
Car insurance companies may have their own ways of evaluating individuals for car insurance discounts, but you are the one in control of your driving record. So keep it clean, and if you can, consider installing additional safety measures to decrease your insurance rates. Drivers with low or no at-fault accidents and no DUI history tend to save on insurance costs.
Though teens and young drivers often pay more for insurance, those with safe driving records can qualify for discounts on their car insurance premiums.
Just to hammer the point home: moving violations are a determining factor for car insurance companies. So eyes up and pay attention to the road while driving! (And no texting either - we see you!) The more mindful and alert you are, the fewer moving violations or accidents you’ll have, which in turn will help you qualify for safe driver discounts and reduce your insurance rates.
Opt into a Higher Deductible
We know you probably know this already, but just in case: a deductible is the amount that you, the policyholder, need to pay before your insurance provider will pay out in the event of theft or an accident. So if your deductible is $500 and an accident causes $5,000 worth of damages to your convertible, you’ll need to fork over that $500 before your insurance company pays the rest (aka the remaining $4,500).
If you think about it another way: when you decide what you want your deductible to be, you’re also deciding how much risk you want to take on. If you’re comfortable paying a higher deductible if you’re in an accident, that could translate to a more lower premiums. In short: the higher your deductible, the lower your insurance rates. So having a high deductible is a quick way to save on car insurance premiums.
But remember: while a high deductible may lower your monthly rates, it does mean you’re on the hook to pay more in the event of an accident or other issue. Figure out if you can comfortably afford to pay out of pocket in case you need to make an insurance claim. If you can’t afford to pay a high deductible in an emergency, you should consider a higher premium option.
Save On Car Insurance with Marble
Ready to save on car insurance? Marble, your online insurance comparison hub, can help you from start to finish, soup to nuts, A to Z, when it comes to comparing and purchasing an affordable plan. Whether you are looking for lower premiums for your comprehensive and collision coverage or just hoping to buy car insurance with the best possible coverage limits, Marble is here to help.
So, what are you waiting for? Sign up for Marble today to compare and shop for the best car insurance; manage your insurance policies and all related documents in one single platform; and earn rewards on each of your insurance policies.