Don’t assume that any company is the cheapest just because they spend money on ads that say so. The insurance company that may be the cheapest for someone could also be the most expensive option for the next person. So you need to compare rates before you purchase a policy. Say you’re a 40-year-old driver who wants a full-coverage policy on a 2016 Toyota Camry LE. Consider that you have good credit and a clean driving record that earns you a good driving discount from most insurers. State Farm in Florida would charge you $1172 per year on average, whereas Geico’s average rate is $433 higher. In California, Geico is the cheapest with an average rate of $1341, and State Farm is $600 higher. If you’re in South Carolina, then Travelers is cheapest at $1275 per year, but in Massachusetts, it costs an eye-watering $2880.
Check the Locals
Smaller regional insurers like Auto-Owners Insurance and Erie have been known to offer higher customer satisfaction ratings than the big four that control half the auto insurance in the country. Their rates are likely to be lower too.
Ask for A Discount
You can get a discount if you:
– Use auto insurance with other types of insurances
– Insure several cars with the same policy
– Have a driving record that is clean
– Pay the annual or six-month premium in one go
– Own a car with specific anti-theft or safety features
– Are okay to receive documents online.
– Are a member of some professional organization or affiliate group
Pay Bills on Time
Maintaining a good credit score is a great way to save money on auto insurance. Most states allow insurers to consider credit as it relates to claim filing chances. So if you improve your credit score, you can get a lower insurance rate.
Check Costs While Buying a Car
When you’re buying a car, check how much it will cost to insure. Certain cars cost more than others. But cars like the Subaru Outback, Jeep Wrangler, and Honda CR-V are amongst the cheapest to insure.
Skip Some Things
If you have an older car, don’t get comprehensive and collision coverage for it, especially if it has a low market value. It won’t make financial sense.