Getting cheap car insurance isn’t always easy. There are a few things you can do to get better deals, but you also need to know what to look for when shopping around.
GEICO offers cheap car insurance that doesn’t sacrifice quality and service. They have an online quoting tool that helps you find the best coverage for your needs, and they provide 24/7 customer support to help you when you need it most.
1. Know What You Need
If you’re looking to save money on car insurance, there are a few things you can do to get the best deal. First, make sure you know what you need.
The cheapest premiums are often the bare-bones policies that meet state minimum requirements for liability coverage only. You might also be able to find a cheap policy with higher coverage limits that also includes collision and comprehensive insurance.
Another important factor in determining your insurance rate is your credit score. Improving your credit score can help you get cheaper rates and increase your chances of getting an insurance policy that meets your needs.
You can boost your credit score by making timely payments, paying up front and using electronic funds transfer. This can save you a bundle on your premiums.
In addition, a number of insurers offer discounts for things like bundling your auto and home insurance or insuring multiple vehicles. Keeping your driving record clean can also help you qualify for a discount.
Other discounts could include getting a low-mileage discount, owning an anti-theft device or taking a defensive driving course. These savings can add up to big savings over time.
2. Shop Around
When it comes to cheap car insurance, the best way to get a good deal is by shopping around. This can be done by contacting your current insurer, talking with an agent or using an online quote comparison tool like The Zebra to see what the competition is offering.
Insurers can take many factors into consideration when setting auto insurance premiums, including your age, gender, credit history and driving habits. The type of car you drive, your mileage, and some other non-driving related factors also contribute to your premiums.
It’s always a smart idea to shop around for cheaper auto insurance quotes, but it can be especially valuable in the case of major life changes. This includes things like buying a new car, moving to a new location, adding a driver to your policy, or switching from a usage-based program to a traditional pay-per-mile plan.
For the best price, shop around at least once a year. This will ensure that you have the right level of coverage for your needs and budget, and that your insurance is up to date. By keeping your policy in good standing, you can often qualify for loyalty discounts that can make a big difference in the long run.
3. Increase Your Deductible
If you want to save a little money on your car insurance premium, you can increase your deductible. However, it is important to do some math before making this change.
The deductible is the amount that you will have to pay out of pocket in the event of a claim on your policy. Most car insurance agents recommend that you start with a deductible of $100 or $250 for comprehensive and collision coverage.
You can also find a number of discounts for lowering your deductible, which can help lower your premium. These discounts are typically based on things like your vehicle’s age and the value of your car.
Another way to reduce your deductible is to decrease the number of miles you drive on your vehicle. Many companies have different mileage thresholds, so you should ask your insurer if they offer any discounts for low mileage drivers.
If you’re in a stable financial situation and aren’t likely to make any claims on your car insurance, then increasing your deductible can be a good move. This is especially true if you’re in a position where you’d be willing to fix small issues yourself without filing a claim.
4. Know When to Cut Coverage
When it comes to cheap car insurance, there are a number of ways to save. Some of them are obvious, like shopping around and increasing your deductible. However, there are also more subtle ways to lower your premiums without sacrificing coverage.
One of the best ways to save is by cutting out unnecessary types of coverage. Dropping comprehensive and collision coverage, for example, is a great way to reduce your car insurance bill. This is especially true if you drive an older vehicle that isn’t worth as much as the price of your policy.
Similarly, dropping rental reimbursement coverage is another clever way to save on your premiums. This type of coverage pays you back for the use of a rented car in the event of an accident.
Other ways to get a bargain are by bundling your policies. For example, many insurers offer a discount when you bundle your auto and home insurance together. Or, you may be able to save with a multi-car insurance policy or a student discount. The more discounts you qualify for, the better your overall savings will be.
5. Bundle Your Policies
Bundling your policies, which includes getting your car and home insurance from the same company, can be a great way to save money. When you bundle, insurers usually provide a discount on your premiums, which can be significant.
Buying multiple policies from the same provider also streamlines your billing and record-keeping, making it easier to keep track of all your policies. It’s especially important to shop around regularly for insurance quotes.
However, be aware that some providers offer bundled deals but issue one of your auto and/or home policies with an affiliate company, which may reduce the convenience of having all your insurance needs under the same roof.
When you bundle your policies, be sure to look for an insurer that offers a high-quality service and specializes in the kind of coverage you need. Typically, sports cars and luxury vehicles are more expensive to insure than less-expensive ones, so it’s a good idea to shop around before you buy a policy from a reputable insurer.
6. Rethink Your Deductible
The deductible is the out-of-pocket cost you pay before your car insurance company will pick up the tab for repairs. You’ll want to choose one that feels doable for you, without causing too much of a dent in your budget each month.
If you have a strong emergency fund and could easily cover a small repair yourself, you may be comfortable choosing a higher deductible. If you’re not in a stable financial situation, though, it may be better to choose a lower deductible and save your money for something else.
Similarly, if you’re driving an older car that isn’t worth much more than its current market value, it might make sense to drop collision and comprehensive coverage altogether. These are the types of policies that pay for repairs to your vehicle after an accident, theft, weather event, or vandalism.
Increasing your deductible can also help you lower your premium, but only if you can afford it if you do need to file a claim. Raising your deductible from $200 to $500 can reduce your collision and comprehensive coverage costs by 15 to 30 percent, while going to $1,000 can save you an additional 40 percent or more.
7. Cash in on Major Life Changes
Big life changes like switching jobs, moving to a new city or starting a business can change your expenses and income. The more prepared you are financially, the easier it will be to handle these changes without disrupting your goals. You should start with a budget that includes a realistic estimate of the financial impact these life events will have on your life. You can then adjust your budget to account for these costs.
Once you have a solid budget, shop around for the cheapest car insurance quotes available to you. This can be done by getting quotes from several providers on the same day and asking each company about their discount programs that might help you save even more. These can include military discounts, paperless statements, a good driving record, bundled policies or student discounts.
8. Revisit Quotes After Major Life Changes
Major life changes, such as moving to a new state or adding a new vehicle to your policy, may trigger an increase in your car insurance premium. But there are ways to bring your costs in line with your current budget needs while still maintaining the level of coverage you need. Getting quotes from at least three car insurance companies with the same information is an easy way to make sure you’re getting a fair comparison.
The type of car you drive also has a significant impact on your premium. If you own a sports car or a fast coupe, your premium will be higher than it would for a regular sedan. Similarly, if you use your car primarily to run errands or take a long daily commute, your policy could be costing you more than it should. Getting new quotes when you undergo a major change to your life is an effective way to ensure that you’re paying for the right amount of car insurance.