Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 14, 2020

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Key takeaways...

  • The best way to find affordable car insurance is to shop around
  • Compare at east three different quotes before making a final decision
  • Check your state’s required insurance minimums before purchasing a policy

Everyone is on the lookout for cheap auto insurance these days. There are many things that you can do to find cheap auto insurance, but some will involve changing some habits.

The following tips will be invaluable when trying to find cheap auto insurance.

Just make sure that you are searching for affordable auto coverage rather than the lowest-priced auto insurance you can find. The absolute cheapest insurance provider is not always the best, as some things should cost a little bit more if you want the best service.

The last thing you will be thinking at the scene of an accident is how glad you are that you have cheap car insurance!

Find cheap auto insurance rates by entering your zip into the FREE box above!

Table of Contents

Improve Your Driving Record

The most important thing that you can do in your quest to find cheap auto insurance is to improve your driving record.

Your driving history is the main factor used by auto insurance providers to calculate your premium, according to information provided by the National Association of Insurance Commissioners.

Auto insurance companies need to assess your risk for creating a claim in the future, and they look at a number of factors to do that.

Drivers with a lot of tickets and traffic infractions will have the highest auto insurance rates.

Furthermore, drivers with serious offenses such as DUI and hit-and-run violations might find it difficult to get insurance anywhere.

Conversely, those drivers that have proven that they make sound driving decisions will be assessed as a lower risk. Drivers with a clean driving record will have cheapest auto insurance.

If you want cheap car insurance, then you will need to start making sound driving decisions.

If you have many violations, you might want to think about taking a defensive driving course. A driving course will take points off of your driver’s license, helping to lower your auto insurance costs.

Make sure that the course is approved by your state’s Department of Motor Vehicles to reduce your points.

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Improve Your Credit Score

Another factor that all insurance companies use to assess your risk is your credit history.

Drivers who have poor judgment when it comes to finances are believed to also have poor judgment when it comes to driving.

Thus, drivers with low credit scores are more likely to put in a claim in the future.

When you apply for car insurance, the provider checks your credit rating. While this does not affect your credit score, it does affect the price of your car insurance premium.

Improving your credit score is not a quick or easy task, just like improving your driving history.

You need to pay those debts for which you are responsible, avoid using credit whenever possible, and pay your bills on time.

While this will take a considerable amount of time, you will also benefit from an improved credit rating. This will allow you to qualify for the best rates for credit cards, home loans, and your next car loan.

Decrease Your Risk

There are also several other smaller factors that auto insurance providers use to assess your risk. Some of these factors you can control, and some you cannot.

First, you can improve your risk by driving a safer vehicle. It the time for a new vehicle is coming soon, start researching safety ratings now so you can choose the safest car possible.

Safer vehicles help you lessen the severity of injuries sustained in a crash.

The next thing that you can do decrease your risk of having to put in a claim is to protect your vehicle from being stolen as much as it’s possible.

If you can park your vehicle in a garage or secured lot, then you should do so. It is much harder for thieves to steal your vehicle if it is locked in a garage or under video surveillance.

Furthermore, installing security devices will deter thieves and help you to get discounts for cheap auto insurance.

One really inexpensive option is to get VIN etching on your vehicle. With VIN etching, your vehicle identification number is etched into the glass windows of your car.

A 2010 report by the Michigan Automobile Theft Prevention Authority listed discounts for VIN etching as 5 percent to 10 percent of total premiums.

Another option is to attempt to drive your vehicle less.Try carpooling, using public transportation, and reducing errands down to one weekly outing.

Research Pricing Ratings

It’s hard to know which auto insurance provider offers the lowest rates for coverage because every driver has a different set of factors that affect rates.

Some companies have cheap rates because they are cheap companies, and other providers have cheap rates because they only insure the safest drivers.

One resource for finding out insurance companies’ reputations for pricing is J.D. Power and Associates’ Power Circle Ratings. J.D. Power and Associates conduct annual ratings based on customer surveys, and pricing is one of the factors that it rates.

In this way, you can find out a company’s reputation for pricing. However, this will not guarantee that you will also get cheap pricing, especially if you have a poor driving history.

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Review Your Insurance Needs

While many people are probably underinsured, you need to make sure that you are not trying to buy too much insurance.

Every state requires minimum levels of mandatory liability insurance, but each state has different minimum levels.

If your state minimums are closer to the lower side, then you probably need to buy more than the state minimums.

Conversely, if your state minimums are closer to the high end, then you probably don’t need to buy more than the state minimums.

Additionally, optional coverage such as collision and comprehensive might not be necessary.

While these types of coverage are required when you still owe money on your vehicle, they are not always necessary after your vehicle is paid off.

If your vehicle is still worth a considerable amount of money, then you should keep your collision and comprehensive coverage.

Another option is to raise your deductibles on your collision and comprehensive coverage. Just make sure that you don’t raise your deductible to an amount that is more than your vehicle is worth.

Compare Auto Insurance Quotes

The last step in finding the cheapest auto insurance rates is to compare auto insurance quotes. The quickest and easiest way to compare quotes is by using a quote comparison website.

These comparison websites take your information and send it out to various insurance providers. Those insurance providers then send you your quotes via e-mail or over the phone.

This allows you to quickly and easily see the range of prices available to you.

You can even use one insurance company’s quote as leverage when trying to lower the quote from a different insurance company.

The importance of comparing auto insurance quotes to find the cheapest provider is highlighted in a 2012 study conducted by the Consumer Federation of America to assess differences in rates.

Start your comparison right here by entering your zip code into the FREE box below to receive car insurance quotes from multiple companies!

References:

  1. https://www.farmers.com/auto/
  2. http://www.insureuonline.org/consumer_auto_ten_tips.htm
  3. https://www.equifax.com/personal/?/
  4. http://www.wikihow.com/Choose-the-Best-Anti-Theft-Devices-to-Protect-Your-Car
  5. http://michigan.gov/msp/0,1607,7-123-1589_57983-250994–,00.html
  6. https://en.wikipedia.org/wiki/Vehicle_insurance_in_the_United_States
  7. https://www.progressive.com/glossary/comprehensive-and-collision/
  8. https://www.statefarm.com/simple-insights/saving/car-insurance-deductibles-and-coverages-choosing-well
  9. http://www.consumerfed.org/news/545