5 Ways to Make Your Car Insurance Cheaper

At the moment, the things we know that are infinite includes — the universe, human stupidity and, of course, the rise in auto or car insurance premiums. According to insurance agent Evelia Mascareno, every year auto insurance rates increase somewhere between two and seven percent.

For many, owning an insured car is essential. Of course, you can always try to squeeze more out of your budget to compensate for your ever increasing insurance premium; but if you feel like putting up with a tiny battle — here are five tips that can help you lower your premiums:

1. Switch companies

If you feel like your car insurance premiums have spiraled out of control and your insurance company isn’t willing to help you make them more affordable, then switch companies! The insurance industry is very competitive. They all want you to be their customer and there’s a good chance you’ll be able to get a better deal elsewhere.

But you must always be careful when it comes to switching. Don’t fall into the trap of getting bare-bones coverage from another company. Some insurance companies will offer you dirt-cheap rates — but they’ll fail to mention that they’re really going to have to slash your coverage in the process. As tempting as it might be, don’t cut your coverage too much. If you do, you could wind up paying even more after an accident than you would have with those expensive premiums.

2. Stick with the same company

This might seem like a complete contradiction to the previous tip, but stick with us! Many car insurance companies will offer you a loyalty discount if you’ve been a customer for a certain amount of time. Typically, you need to have a policy for a couple of years before these discounts kick in.

So if you are feeling unhappy with the amount that you are charged with, just talk to your insurer to see if you can get a better rate. In most cases, if you’ve been a good customer then they’ll want you to continue being a customer.

Bonus tip: Get a quote for the same (or a very similar) coverage with a competitor and ask if your existing insurance company can match it. That should give you the upper hand with your negotiation.

3. Slow down

No matter which company you’re dealing with, you’re never going to get an affordable monthly premium if you’ve racked up a ton of speeding tickets and offenses. Every insurance company bases its premium rates on risk. The more of a risk you are, the more you’re going to pay.

Most insurers will offer discounts when it comes to having a clean driving record. For older drivers, completing a safe-driving course can often be a bonus too.

4. Insure everyone together

Many insurance companies will offer you a discount if you insure two or more cars with them. So, if the wife and kids have their own individual policies, have everyone team up! After all, you have to get insurance for everyone anyways, so why not insure everyone through the same company and save some money in the process?

5. Increase your deductible

By raising your deductible, your auto insurance rates will drop. One of the reasons for this is because you are ultimately sharing a higher share of financial responsibility — but you have to be careful in making this decision. Make sure that you can actually afford it first. One way to do that is to set aside some spare money in a separate higher-interest savings account. Then earmark that cash only for when you need to pay your deductible — and nothing else.

You should also consider your accident record. If you are a good and safe driver, then increasing your deductible is a good idea. But if you are prone to accidents, you might want to think twice.

Photo Credit: David Hilowitz


  1. 1

    Ray says

    #1.switch companies !!!
    Since I need a ton of insurances between rental properties,vehicles and personal I shop every year.
    When I shop I compare apples to apples to be sure I’m not cheating myself. I’m satisfied that the insurances I have are at great premiums for me.Also carry high deductables unless the premium between two levels is almost negligeble.
    Back in the day when I still needed individual health insurance (HSA) I used a broker that did the shopping for me.He advised that it’a always best to change carriers every three years.The first year is the marraige,the second the honeymoon and the third is the ugly divorce with high alimony.
    Having a high credit score is also a must.
    I have a 2012 mazda5 and a 2009 chevy 1 ton cargo van.Full coverage on both is just under $600.per year combined.Both jave a 1k deductable as there is almost no difference in going with a 2.5 deducatable.I’m in my third year with this carrier.First year was 497.,second 582.,now it’s 597.If they raise me by over $75.next year,I shop.

  2. 2


    I’ve had success with this strategy with all sorts of insurance: solicit competitive quotes, and if any beats your current provider, send it to them and ask, “what would you do if you were me?” Amazing how they can then find ways to reduce your premium.

  3. 3


    We switched companies and found out that we could save hundreds of dollars each month! Our car insurance is incredibly cheap now and whenever we tell people about it, they don’t believe us.

  4. 4


    Tip number one, Switch companies is the leading tactic. Specifically this means shopping the market. Insurance companies build their quotation up based upon
    predetermined base rates or a base cost if you will. These base rates are established for drivers of a given profile and location and they can vary enormously from one insurer to the next. When you shop carriers you are effectively shopping rates. Base rate variation can lead to a premium price discrepancy between two insurers of even one thousand dollars per annum on a standard policy including collision and comprehensive; that’s price difference – rooted in base rate competitiveness! Understand that one insurer, cheap to one person may be expensive for another driver profile. The more you shop, the wider the price gap found.
    While discounts help they are rarely the primary route and may be thought of as a secondary tactic, along with deductible raising. Dirt-cheap ‘offers’ often come from an insurance agency (as opposed to an insurance company or carrier) and relate to very basic liability insurance only. Know your coverage need.

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