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Tips for Saving Money on Car Insurance

– Posted in: Auto Insurance, Everything Auto, Insurance 101, Insurance and Risk Management

When it comes to car insurance premiums, you may be in better shape than you think. Today, I am going to share with you some tips for saving money on Insurance.  Remember when you shop for car insurance,  you need to treat the process like a mega store checkout.  Ask about specific discounts because you may not get them otherwise. Before you even call, it’s a good idea to visit the company website to learn what they give discounts for. By the same turn, you should also be aware of why you may pay a higher premium and what can you do about lowering your rates.

Below are some ideas and tips that will help you to save money on car insurance.

Tips for Saving Money on Car Insurance

Time without insurance

If you have gone without insurance, expect to pay a higher premium. Do not cancel your Insurance if you can help it. For example, if you are selling your car and buying another one, you can still maintain your policy as long as you buy your new vehicle on a certain time frame and replace your policy with the new one.

Traffic Violations

If you have had a traffic violation, expect to pay a higher premium. In some cases you may even have to purchase high risk insurance until you have taken driver safety courses. Always mindful about your driving habits. Be a cautious driver and avoid getting ticketed.

Student status

If you are a student on the honor roll, you may qualify for a lower premium. Some insurance companies even offer this discount to students in college.


Age is most definitely a factor when it comes to premiums. The younger you are, the higher your premiums are. But as you grow older with great driving habits and clean history, you will see your premium lowering.

Style of car

This is common sense. The sportier the car, the higher the insurance premium. As the joke goes, it’s not that you can’t afford to buy a corvette; you just can’t afford to insure it. Fall into the habit of getting quotes for the vehicles you are looking to purchase. This will give you a better understanding  about the insurance premium you will be paying for a certain car that you are interested in.


The type of coverage your purchase has a lot to do with the price of the insurance. Full coverage is going to cost more than liability and high risk is going to cost more than anything. If your car is older, consider dropping the collision coverage. Car depreciates as it ages so you are not going to get a lot of money if it is becomes a “total loss” in an accident. Carrying collision coverage in those cases are not worth it! This also works great if you are looking to save insurance premium on an older car.


If you live in an area that experiences a high amount of theft or vandalism, you are going to pay a higher premium for carrying full coverage. Before moving, it is always a good idea to check with your Insurer about the rates in the new location so that you can make an educated decision about relocating.

Distance driven

When you drive very few miles, your vehicle is at less risk because it is rarely exposed to obstacles and other drivers. On the other hand, if you drive a long way every day, you may pay a higher premium.

Other drivers

Anyone else who might drive the car is taken into consideration when it comes to insurance premiums. This is why parents of teen drivers may pay a higher rate than someone with the same demographics who doesn’t have a teen driver in the house. Paying for young drivers is a necessary evil we all have to survive. There is no way around it. Your children need to be added to the policy when they get their license not to mention they also need to build their driving and Insurance history once they are licensed.

Payment cycle

Like just about every other business, insurance companies reward those who pay on time or pay early. The sooner the premium is paid, the less it costs. Maintain your clean payment history with your Insurer and it will surely help you to enjoy better premium with them.

Talk to your agent to see which discounts you qualify for. Developing a long term relationship with your insurance company could reduce your rates significantly. These are some tips for saving money on car insurance.

If you have a tip for saving money on car insurance, please share it here using the comment section so that we all could benefit from it 🙂



1 Comment… add one
Jayden Eden July 1, 2014, 10:59 pm

It’s surprising to learn that age can affect your insurance so much. I hope I can find a good company for myself. I just bought a car, so I hope I can get some soon so I can drive.
Jayden Eden

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