Saving on car insurance and getting cheaper rates–the basics

Reader question:

What are some basic ways I can save on my auto insurance?


Great question, Ronald.

There are so many ways to save on auto insurance that it can begin to seem like a maze of discounts and deductibles and discounted coverage and and–it just gets insane. So, when you walk into your car insurance company or agency’s office with the intent of saving some money, it’s good to have a plan mapped out in your head so you don’t get lost and walk away with higher premium bill than you wanted. Here’s some basics to think about:

  • Shop around before you go. Click the link at the top of the page to get some car insurance quotes from various companies. Ask your friends what they have. Ask around, shop around, and get a good look at what all is on the market before you come to a final decision.
  • Pay a higher deductible. If you’re a good driver, then the likelihood of you getting into an accident is very slim, so, since you might not be making any claims, it might just be cheaper for you to up your deductible to keep your premium down.
  • Cut down on your driving. High gas prices already provide a good incentive to do this, but lower mileage and carpooling can help you save on your car insurance premium as well.
  • Check out your credit report. If you see any errors that make you look bad, fix them. They can cause problems for you everywhere, but with your car insurance as well, so before you go to open a new policy, make sure your credit report is clean of anything you didn’t put there.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Suzana

    I know it can be frustrating but if you can’t afford the insurance do not go and buy a car wait until you are 18 and keep saving. An 18 year old with a full license for 12 months is a much better risk than a 17 year old who has just passed their test.There are several ways you can look at to reduce your costs.1) Take the pass plus2) Consider a short period (6 month) policy3) Try the Norwich Union pay as you go scheme4) Make sure the car you buy is a low insurance group and quite old.But none of your suggested possibilities are available.

  • Gene

    Ask for discounts. Some insurance companies would not give it to you until you ask! :) Great info. Thanks!