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: Aug 16, 2021

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Key takeaways...

  • Getting insurance online, black box insurance, only liability coverage, and/or bundling discounts are surefire ways to save on auto insurance
  • Keep in mind though that liability coverage only protects so much; collision and comprehensive might be a nice addition
  • Also shop around for the same policy with multiple companies to guarantee you get the best coverage

With the cost of everything going up, many people are evaluating their bills to see if there is any way to save money. One specific service that people often pay too much for happens to be car insurance. Even though there are a multitude of companies, more often than not only the largest insurers show up on the radar.

While you may be aware that you are paying too much for car insurance, you may not be sure how to find a cheaper insurance provider. There are many strategies you can use to reduce your auto insurance bill overall.

Looking for cheap car insurance? Enter your ZIP code above and compare at least three to four policies today!

Have you considered looking into online insurance?

One way that you could potentially get cheap auto insurance is to buy from an online provider. Many companies in today’s market do business entirely online and do not have local insurance agents.

While you may not like the idea of not having an insurance agent in your local area, it could potentially save you some money.

When an insurance company does business entirely online, it allows the company to save money on overhead. In person exchanges tend to cost more, and so by switching to offering online service, the company does not have to pay for local offices, insurance agent salaries, and for other expenses.

It can simply have one office and set up a website; with the savings, the insurance company can charge cheaper premiums to customers.

You may be able to get the same coverage that you would get from a regular insurance company by merely purchasing online.

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Have you heard of black box insurance?

If you are a safe driver, you may be able to save some money on your auto insurance premiums. In the past, proving you were a safe driver was somewhat tricky.

The only thing that the insurance company had to go off of was your driving record. While a good driving record is a good indicator, it does not give insurance companies the entire picture.

With advancements in technology, it is now possible for insurance companies to see how you drive on a regular basis. There are quite a few different ways in which a company can offer you discounts, and having a safe driving record is one of them. Many providers have started to offer ways in which to monitor you as you’re behind the wheel, so they can get first hand data regarding your driving habits.

By installing a black box in your vehicle, the insurance company can see exactly how you drive; the black box has a GPS transmitter inside and shows the insurance company your driving patterns.

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If you drive within the speed limit and drive carefully, you will have a better chance of getting a lower rate for your insurance premiums. A black box makes it possible for you to prove to the insurance companies that you are a good risk and that you will not cause any problems.

Driving less miles can also help you save money on insurance premiums. Less time on the road means there’s a smaller chance of any accidents happening. Most insurance companies will give you a discount for a low-mileage policy.

In some cases, the black box technology will be used to track how many miles you drive on a regular basis.

By being on the road for less time, and if you drive safely whenever you are traveling, insurers will be more inclined to work with you in terms of what you pay for your policy.

Can you pay for liability-only insurance?

https://www.youtube.com/watch?v=qq4gjxq0v8o

If you drive an older vehicle or one that is not worth much money, you may be able to save some money by getting a liability-only policy. That’s right, you can choose your coverage level.

Liability insurance is the only type of coverage that is required by state law, and it protects the financial interests of other drivers on the road. it also covers any accident with a motorist involved. Additionally liability includes coverage for any injuries that may be inflicted on other people involved in the accident.

If you cause a wreck, the liability coverage will kick in and pay for the damages.

The collision and comprehensive aspects of an insurance policy can add to the total that you have to pay. If you don’t owe money on your car, you are not required to have these extra coverage options. Because of that, if you reduce the type of coverage you have, it’ll also lower your monthly payments. Be advised, this doesn’t mean you should drive recklessly. If you fail to drive safely, you’ll find yourself staring at a rate increase, because if a provider finds you yourself to be a liability, they’ll be less likely to cut you a deal on how much you’re paying.

While you can significantly reduce the amount of money that you have to pay to the insurance company by getting rid of collision and comprehensive coverage, you have to be aware of the risk that you’re taking on.

If your car is damaged, you will have to pay to fix it out of your own pocket. If your car is totaled, you need to be able to afford another vehicle because your insurance company will not pay anything for it.

Are you able to bundle different types of insurance together?

When buying auto insurance, bundling your policy with other coverage options can help you save money as well. In this scenario, you should try to get as many insurance products as possible from the same insurance company.

For instance, if you need to buy a homeowner’s insurance policy and life insurance, get them from the same place that you get your auto insurance from.

Most insurance companies will give you some kind of loyal customer discount when you buy multiple policies from them.

Consider the types of coverage that are offered to families, both for the home and any vehicles. If you and your spouse both have vehicles, consider getting policies on them from the same insurance company as well. Multi-vehicle policies will improve your chances of getting a discount from the insurance company. Taking a look at who has the most affordable rates when it comes to bundling will only help you in the long run.

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Should you shop around for insurance before signing up?

One of the best ways to save money on insurance is to comparison shop. These days, you can check on insurance rates from many different insurance companies online without much effort, making it easy to find an affordable monthly payment.

You could get quotes from individual insurance company websites, or you can go to comparison websites that give you quotes on multiple insurance companies at the same time.

When comparison shopping, you need to make sure that you are comparing apples to apples.

If you compare a liability-only policy to a full coverage policy, you will not get a very fair comparison to work with. Make sure that every policy you are looking at has the same liability coverage limits and other benefits. During your comparison shopping, check to see if any common discounts were added to your online quotes. You don’t want to compare a discounted policy against one that doesn’t have any discounts applied.

Having similar coverage and benefits will ensure that you are getting quotes on like policies from the various insurance companies that you are shopping with.

Once you have evaluated the policies from several companies, you can then make an educated decision about which policy to go with. Otherwise, you might end up choosing a policy that does not provide all the benefits you need just so that you can save a few dollars.

An additional tip when you have your sample insurers is to check out the nature of their customer service. If you’re seeing nothing but bad reviews and negative ratings, look elsewhere and safe yourself a headache. You’re going to want exceptional service when it comes to your safety, and if a provider isn’t able to follow through, find someone else who will.

Looking for better and more affordable coverage? Enter your ZIP code below and start comparison shopping today!

References:

  1. https://www.iii.org/article/how-can-i-save-money-auto-insurance
  2. https://www.moneysupermarket.com/car-insurance/how-does-black-box-insurance-work/
  3. https://www.investopedia.com/terms/a/automobile-liability-insurance.asp
  4. https://www.thebalance.com/understanding-minimum-car-insurance-requirements-2645473
  5. https://www.thebalance.com/comprehensive-vs-collision-coverage-527402
  6. https://www.policygenius.com/blog/when-you-should-and-shouldnt-bundle-your-insurance/