If your rates are increasing, you’re not alone.
Here are some quick ways to save money on car insurance (without sacrificing your coverage).
Florida has some of the nation’s highest car insurance rates, with the average driver spending around $2,300 on auto insurance premiums each year. Unfortunately, it doesn’t look like the market is going to soften any time soon.
Isn’t there anything you can do to lower your car insurance rate (short of moving to Maine)?
Actually, yes!
At Harry Levine Insurance, our goal is to educate you on insurance so that you can not only make more informed decisions, but take some level of control over your coverage. Previously, we shared our tips for lowering your home insurance premiums. In this article, we’ll show you how to save money on car insurance.
1. Use an Independent Insurance Agent
Our first tip when it comes to buying auto, home, life, or any other kind of insurance? Use an independent insurance agent.
Independent agents are not only free to use, they have access to some of the best policies on the market, including some that are only available through an independent agent. As a result of such wide experience, these insurance experts know which companies have the best customer service, where you might be underinsured, and which car insurance discounts might be available to you.
Even if you have no interest in switching car insurance companies, it’s worth re-evaluating your coverage each year to make sure you’re getting the biggest bang for your buck. If your job, marital status, daily mileage, or other factors have changed, this could lead to reduced car insurance costs.
2. Buy More Than the Bare Minimum
Many policyholders who aim to save money are afraid of so-called full coverage insurance. As a result, they only purchase the bare minimum coverage required by law.
This doesn’t just leave you with inadequate coverage, it hurts you financially!
In fact, car insurance companies tend to give their best rates to drivers they see as more responsible. And by purchasing the bare minimum, you’re inadvertently sending the wrong message.
If you’ve been skating by with only the required car insurance, ask your agent for a quote that includes collision and comprehensive coverage, uninsured motorist coverage, and any other policies they recommend. You might be surprised by how much you save!
3. Change How You Pay
If you’re used to paying every month, you could be missing out on easy car insurance savings.
Many car insurance companies offer a discount if you pay your premiums upfront. If you have the money in your bank account already, it can be well worth it.
Others may offer discounts for auto-payments and/or e-billing, which is an easy way to save a few bucks.
4. Drive Safely
Do you see yourself as a good driver? Car insurance premiums are based on many factors, one of the main ones being your level of risk. As a result, anything you can do to decrease the likelihood of you getting into an accident has the potential to decrease your premium amount.
Many insurance carriers offer Usage-Based Insurance (UBI) discounts, which use your cell phone to determine things like your speed, how quickly you accelerate/decelerate, how fast you take turns, etc. These metrics are then used to determine if you qualify for a safe driving discount.
Some companies offer discounts upon completion of a defensive driving course. Having this certification on your driving record is not only a great way to save money on car insurance, it’s a great way to reduce accidents as well!
Some carriers offer extra defensive driving discounts for drivers 55 and older. Defensive driving discounts can be between 2-7% of your total premium, and every bit counts!
5. Shop Smart
While it’s a myth that red cars cost more to insure, it’s no secret that some cars do come with higher auto insurance rates than others. The next time you’re in the market for a new car, do your research beforehand to see what it will cost you to insure it.
If you’ve already bought the car (and you’re really paying through the nose), it might be worth selling your existing vehicle in favor of one that costs less to insure.
Call your independent insurance agent and crunch the numbers with them to be sure.
6. Protect Your Assets
Anything you can do to reduce your likelihood of having to file a claim has the potential to lower your premiums. So in addition to safe driving habits, protecting your vehicle from theft and damage may be a cost savings.
Ask if your insurance carrier offers discounts for anti-theft devices (such as alarm systems) and other safety features and, if so, which ones. In Florida, this usually translates to a savings on your collision and comprehensive insurance, not your entire premium, but it’s worth checking out.
7. Ask For One!
As the saying goes: It never hurts to ask!
Give your agent a call to see if you qualify for a lower rate. Discounts are commonly available if you meet certain criteria or belong to a certain organization (AAA, AARP, a school alumni association). If you’re in school, you may even be able to get a good student discount!
This may also be a good time to bundle your home and auto insurance, if you haven’t already.
8. Improve Your Credit Score
One of the factors that insurance companies use to calculate your premiums is your insurance score, which is in turn based on your credit score.
By practicing good financial habits (such as paying credit card bills in full and on time), you’ll not only be improving your credit score, you could help lower car insurance costs as well.
9. Raise Your Deductible
We’re mentioning this here only because it is a popular way to save money on car insurance premiums (deductible goes up, premiums go down and vice versa). In reality, however, it’s not always a good idea.
A higher deductible means you will have to pay more out-of-pocket before your insurance kicks in every time you have a claim. For many people, this may make sense. But for others, you will be in for a rude awakening the next time you’re in a fender bender. (And the next time. And the time after that.)
Think long and hard before you decide to go this route, as it’s rarely worth it.
10. Don’t Skimp On Car Insurance!
I get it. We all want to find the cheapest car insurance. But we at HLI have seen way too many drivers sacrifice their security in the quest for lower premiums.
When it comes to insurance, the old adage “you get what you pay for” is true. There are very few instances where you can cut your insurance payments drastically without sacrificing coverage and customer service.
For this reason, we always caution our clients to carry as much coverage as they can afford. Yet about 20% of Florida drivers do not have insurance, leaving them without any financial protection if they get into an accident, have their car stolen, or—even worse—injure someone while on the road.
None of us can prevent accidents 100% of the time. That’s why we need good insurance!
We Can Help
There are lots of ways—good and bad—to save money on car insurance. Being able to tell the difference comes down to one thing: who is on your side?
At Harry Levine Insurance, we’re not just insurance agents. We’re insurance educators with decades of experience in finding you the best coverage at a fair price.
We’ve seen firsthand what happens when Floridians are content with less-than-stellar coverage and we consider it our primary goal to make sure our clients have the knowledge they need to make informed decisions.
Our comprehensive approach to insurance looks at the big picture to find the best policies (and prices) for your needs. Call today or visit our website for a free quote. We can’t wait to meet you!
Comments (14)
Victoria Addington
February 27, 2024Thank you for letting me know that your insurance score, which is based on your credit score, is one of the elements used by insurance providers to determine your prices. I’ll make sure to remind my daughter of this as she has been preparing to purchase auto insurance for the first time. I’ll also look into experts who can assist her in obtaining one.
Elle Jones
February 2, 2024That you said that taking a defensive driving course can result in lower auto insurance costs makes me happy. My spouse is going to look for auto insurance coverage because he recently purchased a new automobile. Since he has a clean driving record going back three years, I’ll ask him to look around for savings.
Elle Jones
January 17, 2024You brought up a really good point when you said that when you do your homework, you will find out how much auto insurance would cost. This advice will be useful to my mother, who is searching for a reputable insurance company for her brand-new black automobile. Your advice is beneficial since she wants to make sure she will discover the greatest bargain to keep everything inside her budget without sacrificing the coverage she needs.
Sam Andrews
December 25, 2023Oh, hello! I just have to revisit this article considering you mentioned how useful independent coverage agents are because they cost us nothing. I wish to buy myself a new car this Christmas. Time for me to consult an insurance dealer before taking further action.
Okoh albert
December 19, 2023I really loved this article
Elle Jones
December 15, 2023Interestingly, you said that taking a defensive driving course can result in lower auto insurance costs. After purchasing a new vehicle, my spouse intends to look for an auto insurance coverage. I’ll ask him to look around for savings because he has a clean driving record going back three years.
Auto Insurance Warwick NY
November 15, 2023Saving money on car insurance is a big deal. This blog offers lots of great tips to saving the most money. Thanks for sharing!
Shammy Peterson
October 31, 2023It sure was helpful when you said that you will see what is the cost of insuring your car beforehand when you do your research. My mother will find this tip helpful because she is looking for a reliable insurance agency for her new black sedan. She wants to ensure that she will find the best deal to keep everything within her budget without compromising the coverage that she needs, so your tips are helpful.
Sam Andrews
October 15, 2023Well, hi! This article is highly suitable for my daughter, considering she will buy her first car this summer. You deserve some credit for encouraging us to improve our credit rating to enjoy better insurance rates. She should just talk to a policy agent before making a purchase.
Elle Jones
October 4, 2023I appreciate you explaining how taking a defensive driving course may help you save money on your auto insurance. My husband recently purchased a new vehicle, therefore he intends to look for auto insurance coverage. For the previous three years, he has maintained a clean driving record, therefore I will advise him to look about for deals.
Shammy Peterson
September 5, 2023Thanks for pointing out that you can save money on car insurance when you complete a defensive driving course. My husband bought a new car, so he is planning to shop for an auto insurance policy. He has been keeping a safe driving record for the past three years, so I will ask him to shop around for discounts.
Julie Levine
September 7, 2023Hi Shammy,
Thanks for checking out our blog! You’re right. It’s always great to know your options!
Thanks,
Saleh
July 27, 2023The author’s expertise and ability to break down complex insurance concepts into simple, actionable steps is commendable. I particularly loved the section on lesser-known discounts – it opened my eyes to new possibilities for reducing my car insurance costs. This article is a goldmine of money-saving ideas, and I can’t wait to implement them to see some real savings. Thank you for sharing this invaluable resource!
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January 27, 2023Thanks for this helpful information I agree with all points you have given to us.