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...

  • Liability insurance is usually the cheapest type of coverage
  • Every state has its own mandatory level of car insurance required to operate a vehicle
  • PIP coverage will pay for medical expenses if you’re involved in an accident

One way to save money on your car insurance is to use a discount car insurance company. Insurance rates can vary quite a bit from company to company and it pays to shop around and compare quotes.

There are a number of ways to do this and to find the right policy for a good price.

Just as insurance rates can vary, so can the insurance companies themselves. Not all companies are made the same, so make sure you do your research on each one.

Besides choosing a discount car insurance company, you can also save money on your auto insurance premium by taking advantage of certain policy discounts that are often available.

You can start looking for discount rates on car insurance right now by entering your zip code into the FREE quote box above!

Table of Contents

Reasons that Car Insurance Is Discounted

Many auto insurance companies advertise themselves as being discount companies.

One of the reasons their rates are discounted is because they offer just basic liability insurance. Basic insurance is considered to be the minimum amount that is mandated by the state.

In the past, you had the option of whether or not to purchase car insurance, the type of coverage, and how much to get.

You still have options these days, but the state you live in determines what the basic insurance is that you need to get.

To find out what your state mandates, check out the state information on the website of the National Association of Insurance Commissioners.

Check out what the types of coverage are, what the deductibles are, and the limit amounts for liability insurance.

If you don’t understand what everything means, this information on the Insurance Information Institute website can help you.

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Reasons to Pay More for Car Insurance

Even though discount car insurance companies may advertise cheap basic policies, most of them offer additional coverage as well.

In most cases, it is a smart move to purchase more than just the minimum insurance.

If you are in an accident and are at fault, you are responsible to pay for the damages. This includes damage done to the other vehicle, driver, and passengers.

Once you pay for the deductible, the insurance starts paying for the expenses, up to a limit specified in your policy.

Once that limit has been reached, you are responsible for the rest.

If you just have the basic insurance required by your state, there is a good chance that it won’t be enough coverage for everything.

This is especially true if there are bodily injuries, as medical costs have skyrocketed over the years.

For this reason, it is usually a good idea to pay more for higher limits. You may also want to decrease your deductible amount, which will actually increase your premium.

Because most states only mandate liability insurance, you may choose to purchase additional coverage such as comprehensive, collision, and medical payment coverage.

These will cover the cost of damage to your own vehicle, your injuries, and your passengers’ injuries.

Collision coverage is a good thing to have if you have a newer car, as it will cost more to repair it if it’s damaged.

If you have medical payment coverage or personal injury protection (PIP), they will help cover medical expenses as well as lost income and other costs associated with bodily injuries.

How to Find a Discount Car Insurance Company

The quickest way to find a discount car insurance company is on the internet. Type “discount car insurance” in the search box and you will be presented with a number of websites that advertise cheap auto policies.

You can also use a site such as this one, which will give you quotes from multiple companies.

This will save you even more time because you only have to enter your information one time and get to choose from many providers.

Once you have a few quotes, your next step should be to research the companies. Not all are created equal and it is important to find a reputable one that has been around and will be around for a long time.

How to Choose a Discount Car Insurance Company

Choosing car insurance is more than just going with the lowest quote. You may discover that it is worth paying a little more for your policy by choosing a different provider.

There are a few ways to choose your insurance company.

If you can’t choose between a few companies, one way to decide is by basing your decision off of other drivers’ opinions.

J. D. Power and Associates releases the results of surveys taken of other drivers and rates the car insurance companies in different categories.

If customer service is important to you, choose a company that ranks high in that category. If how they handle claims is important, choose a company based on that.

It is also a great idea to check the financial stability of the insurance company you want to go with. You can see the financial rating, as well as the financial outlook, of most companies at A.M. Best’s website.

Go with a company that has an “A” rating or better.

You should decide on an insurance provider that has a good reputation and not many complaints against it.

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Vehicle Discounts

Even if you don’t choose a policy from a discount car insurance company, you will likely still be able to experience discounts from another insurance company. This is because the type of features your vehicle has may help you save money.

The type of vehicle you drive will make a difference in your rate. If your car has a good safety rating and low theft probability you will probably pay less for your policy.

Some companies are now also offering specific discounts for cars of the hybrid variety.

Safety is extremely important to every car insurance company. If your car has features that increase its safety factor, you will more than likely be rewarded with discounts.

These features include:

  • Anti-lock brakes
  • Multiple airbags
  • Traction control

If you have features to help decrease the likelihood of your car being stolen you may also save money. This may be a locating device, alarm, VIN etching, or other anti-theft apparatuses.

Policy Discounts

Even within the policy itself, there are opportunities to save money. If you bundle your policies, you will often save up to 15 percent.

This includes combining your car and homeowners policies or car and life insurance policies or adding multiple cars to one policy.

Some insurance companies will offer discounts for shopping early. Others will reward you for loyalty and for renewing your policy by offering you a savings discount.

One way you can save money within your policy is by changing your deductible amount.

If you can afford to pay a higher deductible in the case of an accident, your policy rate will be lower. Also, take a look at your coverage on an annual basis.

If you are driving an older car that is paid off, you may not need collision or comprehensive. Check the value of your car at Kelley Blue Book.

If your car’s value is close to or lower than your deductible, you should not carry either one.

Finally, how you pay for your policy can result in discounts. If you pay for it annually rather than monthly, most insurance companies will give you up to a 10 percent discount.

Driver Discounts

Your actions as a driver can save you money on your car insurance. Because your driving record is a huge factor in your rates, keeping your record clean will save you a lot over time.

If you have had a poor record in the past you may be able to get a discount by taking a safety driving course, accident avoidance course, or driver improvement class.

If you are a teenage driver, getting good grades will help you receive a discount from most companies. If you are college educated, you may get a discount as well.

Drivers who drive more will pay more for car insurance just because there are more chances of getting involved in an accident or getting ticketed for a moving violation.

To help save money on your policy, you may choose to drive less.

You can carpool or take public transportation or, if you are away for school or the military, you will often receive a discount because you are not using your car as much.

Check with your insurance company to see if there are discounts offered for being a member of any associations, such as professional affiliations or the AAA. Some occupations will also be eligible for car insurance discounts.

Take some time to speak with your insurance agent to see what discounts may be available for you and your family.

Discount rates for car insurance can be found right now by entering your zip code in the FREE quote box below!

References:

  1. http://naic.org/state_web_map.htm
  2. http://www.iii.org/articles/what-is-covered-by-a-basic-auto-policy.html
  3. https://www.allstate.com/tools-and-resources/car-insurance/liability-car-insurance-cover.aspx
  4. https://www.nationwide.com/personal-injury-protection.jsp
  5. http://www.ambest.com
  6. http://www.iihs.org/iihs/ratings
  7. http://www.kbb.com
  8. https://midatlantic.aaa.com/insurance/car