10 Ways to Save on Your Car Insurance

Many people need car insurance, and once you know what it takes, there are a number of ways to save money on this cost of living. To get started, gather your personal information, figure out your budget, and then think about what kind of insurance you think will best protect you and your way of life.

Here are 10 ways to save money on your car insurance:

1. Find out as much as you can about your car and the people who use it most.

To get the most value for your money when shopping for car insurance, you can start by gathering all the information an insurance company needs to give you the best rate.

1 Before you look for quotes, start by putting together the following information:

Who made your car and when did it come out? It's on the registration for your car.

The VIN is the Vehicle Identification Number. This is on the inside of the door post on the driver's side.

Your car's safety features, such as a lane departure warning system, forward-collision warning, and a back-up camera.

The things you use to keep your car from being stolen, like an electronic tracking device or a steering wheel lock. Along with knowing how the anti-theft features work, you should also think about where you will park your car. Think about how different it is to park your car in your garage vs. on the street or somewhere else outside your home.

Your home and work addresses and an estimate of how many miles you drive each year.

A list of all the people who will drive the car, their ages, and whether or not they have taken a driver safety course. Many insurance companies also want to know who in your household is of legal driving age, what their license status is (like whether they have a learner's permit or a suspended license), and whether or not other drivers in your household have their own insurance. Depending on the state, this can help the insurance agent figure out who should be on the list and taken into account when giving you a quote.

With this information, an insurance company can tell you what kind of coverage and rates are best for you and your way of life.

2. Before you buy or lease a car, find out how much insurance costs.

When you buy or lease a car, it can be tempting to get a brand-new car or trade in your practical family car for a sports car. Just remember that the type of car you drive may affect your insurance coverage and rate. Make sure you know how much insurance will cost before you buy or lease a car. Rates can be very different depending on the type of car, how much it costs to fix, how safe it is, and many other subjective factors. 2

3. Look into all of your car insurance coverage needs.

Insurance requirements for cars vary from state to state.

3 Coverage can get more complicated when a bank owns the car you drive. If you need a loan to buy a car, keep in mind that the lender may require you to have certain insurance that you might not have otherwise needed.

4 One example is collision insurance, which pays to fix damage to your car caused by a crash. Comprehensive coverage is another example. This type of insurance usually pays for the loss of the car due to theft, fire, or other damage that wasn't caused by an accident. Before you buy or lease, find out what coverage you need and how much it will cost.

4. Figure out what extra coverage you need.

Even though it might seem counterintuitive, buying more car insurance may save you money.

5 By weighing your options for extra coverage, you can make sure you are well protected. Think about what would happen to your money if you were in an accident and the damages or injuries were more than what your insurance would cover. You buy car insurance to protect yourself against the costs of a possible theft or accident. Talk to your insurance agent or company to get advice on the right amount of coverage for you.

There are also other ways to get coverage that may save you money. What happens if the car you financed is totaled? Can you pay off the loan in full? In this case, you might want to think about getting GAP insurance, which pays the difference between how much your car is worth now and how much you still owe on it. This is what standard insurance usually covers. 6

Again, your insurance agent or company can help you figure out what choices you have.

5. Accident Forgiveness can save you money.

Having a clean driving record is one thing that can usually help you get lower rates. But even a good driver can have an accident sometimes. If your state offers Accident Forgiveness and Minor Violation Forgiveness, you might want to see if they could help you save money. With these optional features, you can keep your insurance rates from going up after your first covered accident or minor violation. There are also other features, like a decreasing deductible and a waiver of the total loss deductible, that can help give you peace of mind. Ask your insurance agent about these plans if your driving record shows that you are a responsible driver. Some insurance companies in certain states also offer a program that uses smartphone technology to record and score how drivers on your policy drive. This could save you money both during the first term of your policy and when you renew it. It's something else to think about if you're a good driver who wants to save money on car insurance.

6. Figure out what kinds of auto insurance you might not need

If you have an old car and want to save money, you might want to drop collision and comprehensive coverage. When you think about how much your premium, which includes collision and comprehensive coverage, will cost, you should think about how much your old car is worth. Make sure to think about your own driving situation when trying to save money. This will help you figure out if this is a good choice for you. If you have an old car, you may be paying more in insurance than the car is worth. If your car is worth less than 10 times the amount you pay for insurance, it may not be worth it to keep that part of your coverage. 7

7. Changes in your life can save you money on car insurance

You can be sure that your life and habits will change from time to time, so it's smart to think about how these changes may or may not affect your car insurance costs. For instance, did your child go to school far away? You might want to look into a Student Away at School discount. Did you buy a home? You could look into a Multi-Policy Discount and save money by putting all of your policies together. Some of these things may help get your car insurance rate lowered. When you have a major life change like these, it's a good idea to talk to your car insurance agent to make sure you have the best coverage for your needs at the moment.

8. Choose the right deductible for you

Your car insurance deductible is the amount you'll have to pay out of pocket before your insurance kicks in. If you have an accident, you'll pay less out of pocket if your deductible is low. If you choose a higher deductible, your car insurance rates may go down.

For example, if you choose a $1,000 deductible and then get into an accident that costs $2,000 to fix, you would have to pay the first $1,000 of a covered loss before your insurance would pay for the rest.

9. Compare the prices and companies of car insurance

We have choices when we buy a lot of things these days. Many of us wouldn't buy a product or service without comparing prices, the value you get for your money, and the reputation of the company. You might want to use the same thought process when you buy car insurance. Do your research, and then talk to your agent or insurance company about what you need. 8

10. Ask your agent if there are any discounts you can get.

At least once a year, you should check in with your insurance agent to see if you can get a better rate on your car insurance. You might get a discount if you buy more than one type of insurance from the same company, like home and car insurance. As we've already said, a good driving record and extra safety features on a car can also make rates lower. Ask your insurance agent if there are any new options or holes in your coverage so you can figure out the best coverage for you. 9

Now that you know how to save money on your car insurance, you might want to talk to your insurance company about your coverage.