How To Find The Cheapest Car Insurance: 10 Steps You Need To know

classic car driving out just after how to find the cheapest car insurance

10 Simple Steps On How to Find the Cheapest Car Insurance

Looking for credible ways on how to find the cheapest car insurance? When we hear the word ‘investment’ plenty of things may pop into our heads. Our home, stocks, and bank accounts, for instance.

car coins and calculator on how to find the cheapest car insurance

But what about our vehicles? When you think about it, every time you pay your car insurance premium, you’re ensuring that you value your vehicle.

And like any other investment, you want the best deal. However, it’s believed that tons of people overpay by hundreds of dollars every year! That’s hundreds of dollars that could go to investing in your future.

Get the coverage you deserve at a price you can love. Here’s how to find the cheapest car insurance.

1. Check Your State’s Requirements

You may be paying for more coverage than you really need. Generally speaking, different states have different coverage requirements.

The exact level of coverage your vehicle requires is going to depend on your location, so hop online and research your state’s requirements.

It’s a good idea to check in with your state’s requirements regularly, as they’re known to change every few years. Stay legal and stay safe, check your state’s requirements.

2. Consider a Local Agency

It feels almost impossible to escape car insurance advertisements. The biggest companies spend millions of dollars each year to keep their name in the public’s mind.

Naturally, when determining how to find the cheapest car insurance, you may feel tempted to automatically go with one of the larger firms like Geico or Allstate.

two men shaking hands over insurance deal

While they offer great coverage, they don’t always offer the best prices. Your area likely has tons of local agencies that would be more than happy to save you a bit of money.

They may not be as well known as the heavy hitters, but local agencies are often far cheaper.

3. Compare Prices

Of course, when determining how to find the cheapest car insurance, one of the first things you’ll want to do is compare prices online.

There are plenty of different price comparison tools out there for you to choose from. Most of which even offer variables like age, area, and type of vehicle.

Make sure that the information you receive is valid, though. You may recall a previous article where I delved into the difference between personalized quotes and online insurance calculators.

In the article, I came to the conclusion that personalized quotes are often more effective, as online calculators only offer general estimates.

Getting quotes from several agencies may take more time, but it can also save you more money in the long run.

4. Bundle Services

It’s pretty likely that auto insurance isn’t the only type of insurance you’re paying for. For example, you may be paying a monthly premium for home owner’s insurance or renter’s insurance.

bundle of papers

However, did you know that bundling those services can save you money? Agencies like Progressive offer discounts to customers who buy more than one type of insurance through the company.

Ask your current provider about your options for bundling. You may be missing out on some pretty substantial savings for more than just auto insurance.

5. Raise Your Credit Score

Not everyone has the best credit in the world. Whether past financial mistakes were made or you simply have too much debt, plenty of people are in the same boat.

But if you want to know how to find the cheapest car insurance, accepting your poor credit score isn’t the answer.

According to Esurance, those with a poor credit history are far more likely to pay more.

And it isn’t a small amount we’re talking about. They’re paying thousands of dollars more every year. Check your credit score online and start repairing your score to save money.

Poor credit scores aren’t permanent. Take the steps necessary to raise your score and lower your payments.

6. Drive Safely

Lowered insurance rates aren’t always influenced by bundled services or where you buy. One of the biggest factors in how much you’ll pay is your driving record.

It won’t take much to raise insurance rates. So stay safe out on the road. Drive safely and obey all traffic laws.

An accident is more than a brief inconvenience, it can mean paying more in insurance rates for years to come.

7. Ask for Discounts

Ask and you shall receive! Aside from your driving history and credit score, your current life status plays a substantial role in your current rates.

But you may be eligible for quite a few discounts. Contact your insurance provider and ask for a comprehensive list of all discounts offered.

20% off sale emblem

There are tons of different discounts out there including:

  • Student
  • Safe driver
  • Defensive driver
  • Low mileage
  • Military
  • Payment method

If it’s relevant to your vehicle, there’s likely a discount for it. Remember, it never hurts to ask. In the end, you may end up saving a few hundred dollars per year.

8. Consider a new Vehicle

Admittedly, this isn’t always an option. But if you’re in the market for a new car or your current vehicle costs too much to insure, it may be time to switch cars.

Some vehicles cost more to insure than others. For instance, a sports car is going to be a lot more expensive to insure than a basic sedan. Even the rates of certain older vehicles may cost more than they’re worth.

9. Add Another Vehicle

couple comparison shopping online

This step likely seems quite counter-intuitive. However, nearly all insurance agencies offer special discounts to drivers with multiple vehicles on their policy.

Consider adding your spouse or partner to your policy, it may be cheaper for you both in the long run.

10. Keep Comparison Shopping

Even if you have insurance, it’s not a bad idea to check back in with your quotes. Just because one business’s prices were higher six months ago doesn’t mean they’re that high today.

Keep comparing even after you’ve purchased a policy. Agencies are changing their rates all the time, and you can use that to your benefit.

Final Thoughts on How to Find the Cheapest Car Insurance

Shopping for car insurance isn’t fun, but boy can it be rewarding. So next time you’re in the market for a new policy, be sure to keep these tips in mind. They may just save you a pretty penny or two.

And if you’d like to know more about auto insurance or how to save money on your next car, be sure to keep checking the auto finance blog!

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  1. Great sharing!

    Thanks for providing in depth explanations and tips on finding the cheapest car insurance.

    I am never really good at this and think your tips will really help me a lot in finding the best car insurance for my car.

    My girlfriend is currently looking around for a new car, and this article will definitely help her a lot. 

    I will be sharing this with her. I hope to see more of this kind of content in the future.

    • Happy you enjoyed the article.

      Most people hate to shop for car insurance.  It’s like doing your taxes.  Painful but necessary.

      These days it’s much easier to find the cheapest car insurance with all the available resources online.

      If you can invest 30 minutes or so the offers will come rolling into your inbox and you can choose the cheapest from there.

      Make sure you do some research on the carrier as not all insurance companies are the same.  Generally there are always top rated insurers to choose from the many offers.

      Thanks for sharing with your girl friend.  Please share the site with your other friends as well.

  2. Car insurance is not really a topic that people want to think about but your article certainly lays it out clearly and simply.

    Breaking it down into the most important features certainly makes the complexities more manageable to follow.

    My insurance comes due next month so I will be certain to put your suggestion into practice!

    Thank you for this review.

    • Searching for car insurance is like going to the dentist.  Painful but necessary.

      It may take some time, but searching for personal quotes is the best way to go.  Make sure to narrow down your search for the cheapest car insurance to high rated companies with the best price.

      Go with companies that are not rated well will only lead to trouble if you ever have a claim.

      Once you have settled on your choice and you don’t experience any accidents after a couple of years, rise and repeat.  You could save even more money.

      Thanks for commenting.

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