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: Sep 21, 2020

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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 area that people often pay too much is car insurance.

While you may be aware that you are paying too much for car insurance, you may not be sure how to find cheap car insurance. 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!

Table of Contents

Consider 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. 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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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.

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 very little miles can also help you save money on insurance premiums. 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.

Since you are on the road less, there is a smaller chance of having a wreck. Insurance companies realize this and are willing to insure your car for less because of it.

Liability Only

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.

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.

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.

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.

Bundle Coverage

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.

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.

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Comparison Shop

One of the best ways to save money on insurance is to comparison shop. Today, you can check on insurance rates from many different insurance companies online without much effort.

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.

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.

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/