8 Tips To Lower Your Car Insurance Payment

Written by on June 12, 2012 in Money - No comments | Print this page

Shopping Around For Car Insurance Is A Great Method For Saving Money.

Shop for the best car insurance deal

If you are in New Hampshire then congratulations; you live in the only state in the country that does not require automobile insurance for your car. For the rest of us, to have the privilege of driving on state owned roads, we have a legal mandate to buy insurance for our car.

For many people buying insurance is a larger expense that it needs to be. People like to look for deals when it comes to clothing and groceries, but when it comes to insurance they don’t do as much comparison shopping. This is probably because they find it simpler to stick with their current insurer than pay.

But why pay more than you have to. This article will teach 8 ways to lower that insurance bill.

1. Bundle Insurance Policies
Many insurance companies will provide discounts to people that bundle some combination of homeowners, life, auto, and renters insurance. This adds complexity to insurance shopping as it may be cheaper to bundle some and leave others independent. It is necessary to dry many different combinations from different insurers to find the best deal.

2. Take Professional Driving Lessons
Taking a course on safe or defensive driving is a good way to qualify for discounts from many insurance providers. Check with you insurance provider to discover what courses they will accept.

3. Improve you credit score
It may seem like your credit score has nothing to do with you insurance rate, but insurance companies give discounts to people that show signs of being mature and making good decisions. They believe a persons credit score says a lot about how they make decisions.

4. Get a group discounts
Many organizations make deals with insurance companies to offer their members a discount on auto insurance. Group discounts can be found through: Employers, Unions, Credit Unions, Social Clubs, Banks, etc.

5. Only buy what you need
How expensive is your car? Is it really worth it to have full coverage? How much would you save if you only bought the legal minimum? Asking those questions leads people to figure out what the best amount of coverage really is.

6. Increase the deductible
With a $0 dollar deductible you will not pay anything in the case of an accident, but every month you go with out an accident you are paying more. In some ways you are loosing money by not causing a car accident. Instead of spending extra on a low deductible, buy a higher deductible, then use the savings to build a general purpose emergency fund.

7. Don’t Make A Claim For Fender Benders
If the cost of repairing an accident can be covered by dipping into the emergency fund discussed above then that is a better approach than calling your claims adjuster. Every time a claim is filled insurance will go up.

8. Reshop regularly
Situations change both for you and for the insurance market. Do comparison shopping on a regular basis to see if a different company can save more money.


Spending money on car insurance is unavoidable, but it is manageable. As time goes by and you get older and follow the above steps your car insurance costs should continuously decline. It may not seem like much on a month-to-month basis, but over time it will add up to thousands of dollars.

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About the Author

Matt Brand

Matt Brand is QLR's money saving expert. His experience with credit cards and student loans have made him take a strong interest in personal finance, saving money and sharing his knowledge. He is passionate about teaching others how to avoid the trap and make smart financial decisions. View all posts by Matt Brand.