It may not surprise you to learn that auto insurance companies spend hundreds of millions of dollars each year to entice drivers like you to switch to their particular company. One of the reasons they are willing to make such massive investments is because they know once you become a policy holder of theirs, you will likely stay with them, even if rates occasionally increase. Statistics resulting from extensive research investments prove this theory, and they are in the business of data. They also understand that changing car insurance carriers can be a hassle.
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A little diligence and motivation, however, will uncover numerous hidden car insurance tricks to save money. If you want to know how to save money on car insurance, we’ve got you covered with the following money saving tricks car insurance companies don’t want you to know.
How to Get Discounts on Car Insurance
Your job will affect your your rates, so use the right title. Your job can probably be described in multiple ways. Teachers for example, may be referred to as professors, educators, or as teaching professionals. Sales people may also be called sales representative, account representatives or customer relations personnel.
If you paint houses you may be in home improvement, a contractor or involved in property renovation. Using the right description can save you money while still maintaining the integrity of your quote request.
Get rid of the added options. Auto insurance companies love when you add options like lower deductibles, car rentals, higher coverage than necessary and more. If your car is more than a few years old you should particularly be concerned about the expense vs value ratio of these added options.
Insurance companies love people who pay hundreds extra for full coverage when their car is only worth a few thousand dollars. Does it seem odd to you that as your car gets older and less valuable, your rates continue to increase? That should raise a red flag.
If you pay for car insurance monthly, you are already paying too much. There are affordable options to monthly auto insurance payments. You can significantly save by paying your auto insurance quarterly, semi-annually or annually. If that doesn’t seem possible within your budget, set up auto-payments via a debit or credit card and you can still pay monthly but qualify for similar discounts.
Car Insurance Discounts for Safe Drivers
A driver’s training or defensive driving course may save you money. A safe driving course may not only help minimize the impact of an auto citation, it may help you qualify for cheaper auto insurance rates. Most of these courses may be completed online and are inexpensive to sign up for.
The discounts can more than cover the costs of the easy-to-take online course.
This is one of the most underused tricks to save money on car insurance.
Loyalty doesn’t always translate to lower rates. If you believe staying with the same company is how to save money on car insurance you are probably mistaken. Insurance companies can raise rates routinely across the board to all of their customers to improve margins.
Many companies feel a small increase across many customers is imperceptible, but can result in 10, 15 or 20 percent increase or more to you over a relatively short period of time.
Get at least three new quotes annually. No, insurance companies don’t like the fact that you may be constantly comparing, but that’s why it is such an important tool in how to get discounts on car insurance. You probably check prices at the gas station, the grocery store and when buying anything online so why not get comparative quotes on your car insurance at least every year?
When was the last time you compared auto insurance policies?
Ask about discounts. Insurers are not mandated to tell you about ways to lower your costs. This is your responsibility so make sure you ask about every possible discount you may qualify for.
You can also save money by becoming a safer driver, letting your car insurance company know if you’ve recently married and by improving your credit rating. You may have more control on how to save money on car insurance than you think!
When was the last time you checked if you could be saving money on your car insurance policy? Find out today.
35 comments
What are some money-saving secrets related to car insurance that companies prefer to keep hidden, and how can consumers use these strategies to reduce their premiums?
Interesting that in the way you frame your profession, it can either give you a good or bad rate for your care insurance.
Im with state Farm, and I have been in 2 Crashes that I wasn’t at fault, will I be considered not a safe driver even do i wasn’t at fault insurance
State Farm notes in this post that “Drivers who cause accidents generally pay more than those who have gone accident-free for several years.” While they do specifically mention that it is “drivers who cause accidents”, they then go on to say “If you are insured and accident-free for 3 years, you may qualify for a State Farm accident-free savings.” What they are not saying is that they don’t make a distinction between who caused the accident when determining who qualifies for safe driving discounts. So, it is more likely that your insurance rate will go up, or at the very least keep you from receiving discounts at a time when insurance rates continue to increase, because of the two accidents even if you were not at fault. Unless your rate is already as low as it can be because of a long history with State Farm or insurance bundles, you should definitely consider shopping around. Best of luck.
If I’m involved in a car crash two months after registering for insurance, will the insurance company take responsibility for the incident?
That depends on the insurance policy you have and who was determined to be at fault. It’s important to remember that, if your insurance company does end up covering damages to you or the other parties involved in the crashed, that will very likely increase your premiums the next time you renew.
What tactics do companies use to allowed you to save more when you pay quarterly or annually?
assuming I get involved in a car crash 2 months after I registered an insurance are they going to take any responsibility on incident?
If you were insured by the time you had the crash and have been making your payments, then yes they should be covering you per your policy. There may be a deductibles and a few variables.
Good post. I would like to know what are the best insurance companies with minimum coverage. Thanks.
That depends on many factors, such as where you live, what car you drive, and what type of policy you want. It’s best to do online research and ask for quotes so you can compare companies/coverage.
How would getting annual quotes help my car insurance?
it would help ensure that you have the lowest price for the type of coverage you’re getting.
im going to buy a nice car through my father i want to know if i want to do a insurance of my car what should i do?i mean what types of paper should i submit to you?reply me please.
Thanks for Advance….
Contact various car insurance agencies to see what paperwork they require.
What are the cheapest car insurance companies for minimum coverage?
Hello Ryan. There are several factors that influence a policy, which makes it overly complicated to determine which auto insurance provider offers the most competitive policies. Auto insurance agents consider the car you are driving, your driving records, and other information from your profile to determine a personalized rate.
How would your insurance company see that you have completed a safe driving course?
Hello Jesus. Once you completed your defensive driving course, you will be required to send a proof that you took the class upon successful completion.
This is a well thought out and written post. I’ve always known that loyalty doesn’t really count for anything with most insurance companies but I never realized your job title could affect your rates. Makes sense, but I never thought of it before.
Hello Joe. Perhaps you want to discuss with your agent about further discounts that may apply to you based on your profile.
Is this trick limited to certain countries or is it a global thing?
Hello Rujay. This article applies to auto insurance companies in the U.S. You will need to contact your local insurance agent in your local country to find out more about their discounts.
how much money can i save applying this tricks?
Hello Edward. Every auto insurance company works differently when determining a policy. It’s advisable to contact different insurers to see which policy works best for you.
what will be the best way to save money on insurance if i have a lexus is300 2015 ?
Hello Edward. Every auto insurance company works differently when determining a policy. It’s advisable to contact different insurers to see which policy works best for you.
Hi, I just have a quick question. How would your insurance company see that you have completed a safe driving course, in order to give you a discount for it?
Hello Ryan. You’ll need to report your insurer about any course that you are taking that may improve your driving skills. It helps a lot even when they don’t let you know about any discounts.
well i think it worth the money to invest in insurance.
Absolutely. Worth it to avoid spending exponentially more in the future should something occur.
I always avoid things like these, because I’m already betting with the insurance company that my car will have an accident, and they are betting that it won’t. My neighbor had been complaining about her car insurance being too expensive, turns out she was covering her dang internal electronics of the car, and it’s only a 2014 Honda Pilot, I mean to me it’s not that big of a deal, anyone else ever considered something like that for a relatively recent-ish car?
Good point Randy. A lot of times new cars will have things like this covered in the warranty. Definitely worth checking so you’re not wasting money by being redundant with your insurance policy.
Hi, I really enjoyed this article and will apply it to buy a car in the future, how could I identify if I am a safe driver? I am sure that I will have to invest more in my insurance
According to insurance companies, if you had one crash in last three years then you’re not considered a safe driver.