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 13, 2020

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Key takeaways...

  • The vehicle you choose to drive also plays a significant role in your auto insurance rates
  • Some car insurance companies will give you a rate discount if you only complete a driver’s safety course
  • Your driving history also plays a role in how your rates are calculated

If you are paying more than you would like to for car insurance, you are not alone. Some people are paying higher insurance rates than others merely because they are insured by a more expensive auto insurance company.

However, there are many other reasons why your rates may be so high. Auto insurance is an essential cost of driving that most drivers are required to pay for.

After all, most states, as well as auto lenders, require you to maintain a minimum auto insurance policy. So how can you reduce your expensive car insurances rates?

Use our comparison tool above to find affordable car insurance companies now!

Table of Contents

Shop for Lower Rates

Many drivers may benefit by shopping for lower auto insurance rates. There are numerous auto insurance companies you may choose to work with, and each may offer you a different price if you just request a quote.

Because there is such variation in how auto insurance rates are calculated, you may find more significant savings by shopping around to many different auto insurance companies.

This can take time to do, but your efforts may be well-rewarded when you find a company that offers lower rates.

Consider using a rate comparison website online, using the services of an auto insurance broker or contacting insurance companies directly for rate quotes.

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Move to a New Location

Many drivers are not aware that where they choose to live affects their auto insurance rates. Car insurance rates vary state by state, but they also differ considerably even from zip code to zip code.

In fact, when you request a rate quote, your zip code is analyzed to determine the crime rate in the area as well as the average age of drivers in the area.

Some zip codes are more expensive to insure drivers in than others because the average age of drivers may be considerably lower or higher than other areas or because the crime rate may be higher.

Before you move, request quotes from your agent based on a new zip code you are considering moving to.

Trade In Your Car

The vehicle you choose to drive also plays a significant role in your auto insurance rates.

Here are some factors that may affect your rates include:

  • Safety equipment the car has, such as anti-lock brakes, air bags and more
  • Having an anti-theft security system
  • Type of engine in  the vehicle
  • Replacement and repair cost of the car
  • How desirable your vehicle is to thieves

If you decide to trade in your car for a model that is more affordable to insure, compare car insurance rates for a few different makes and models before you make your purchase.

Take a Driver’s Safety Course

Your driving history also plays a role in how your rates are calculated. Some car insurance companies will give you a rate discount if you only complete a driver’s safety course.

Other car insurance companies will require you to prove your safe driving skills.

Establishing a history of being a reliable driver will reduce your monthly premium.

Even if you are insured by a company that doesn’t offer a discount for taking a driver’s safety course, the tips and knowledge you gain by taking the course may help you to improve your driving history.

The bottom line, however, is that you can save money on your auto insurance premium if you are a safe driver.

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Consolidate Your Insurance Policies

Another option to consider to reduce your auto insurance rates is to consolidate your insurance policies to a single insurer.

Many auto insurance companies offer multiple policy discounts as well as numerous vehicle discounts.

If you do consolidate your policies, be sure that your total insurance costs decrease by making the move.

Talk to your current insurance company about savings available to you by moving your homeowner’s or renter’s policy, your life insurance policy and other types of insurance policies you pay for over to them.

Then get a few different rate quotes from other companies consolidating all of your plans with them.

Don’t Pay Your Premium in Monthly Installments

A final option you can consider to reduce your car insurance expense is to avoid paying your premium in monthly installments.

Whether your auto insurance policy has a six or 12-month term, the premium can be pricey to pay for out-of-pocket.

However, auto insurance companies typically charge an extra fee to those policyholders who choose to pay for premium in monthly installments.

By paying your premium in full, you can eliminate this additional tax from your premium cost.

The desire to reduce the cost of auto insurance is a common one shared by many drivers. By putting some of these practical tips into action, you may find a way to reduce the cost of your auto insurance premium drastically.

Enter your zip code in our comparison tool below for FREE car insurance quotes you can compare.

References:

  1. https://www.geico.com/
  2. https://www.allstate.com/tools-and-resources/car-insurance/ask-agent-premium-deductible-limit.aspx
  3. https://www.geico.com/save/discounts/car-insurance-discounts/
  4. https://www.nationwide.com/multiple-policy-discount.jsp
  5. https://www.iii.org/publications/insurance-handbook/insurance-basics/auto-insurance-basics