5 Ways to Cut Cost on Car Insurance Premiums

Are you looking for ways to save your car insurance expenses? We have taken the liberty to help you sort out your car insurance costs through today. Read to learn more.

how to cut cost on car insurance

When it comes to lowering your car insurance premiums, you probably have to be on the pedestal. There’s really no question when it comes to the expense that comes with driving or owning a car for that matter. 

Car premiums can vary by hundreds of thousands of dollars depending on a number of factors. This is why it is essential for you to take control of your insurance costs.

Today, that’s exactly what we’re going to talk about. Here are a few ways on how you can cut costs on your car insurance premiums.  

How to Cut Cost on Your Car Insurance Premium

The best way to cut costs on your car insurance is to actually know how much you are spending on your premium now. There’s certainly a number of strategies you may use to save on car insurance. Once you know how much is car insurance for you, you can put some or all of these tactics to work.

With that having said, let’s get to know how much you will usually pay for car insurance.

How Much Does a Car Insurance Cost

Each driver’s car insurance rates vary based on the state they live in, the insurance company they choose, and the type of coverage they have. However, knowing what the average driver spends on auto insurance might help you save money.

According to the most recent data from the National Association of Insurance Commissioners (NAIC), the average consumer paid $1,190 on vehicle insurance in 2018. To add, automobile insurance rates increased by 30% between 2014 and 2018, despite the number of covered vehicles increasing by just 7%.

According to AAA data, the average cost of auto insurance for new vehicles in 2020 will also be somewhat higher, at $1,202 per year. The figures are very similar, implying that you may need to allocate $100 or so each month for auto insurance when budgeting for a new automobile.

Here’s a breakdown of costs per vehicle from AAA.

Now, let’s take a look at how you can save and cut costs on your car insurance premiums.

1. Be a Responsible and Safe Driver

One best way to save car premium is to be a good driver. The mindful you are, the more accidents or moving violations you’ll be able to avoid. These are events that may raise your insurance rates. Insurance companies often offer safe driver discounts of between 10% and 23%, depending on your driving record. 

Traffic tickets and accidents drive up car insurance premiums. If you get a ticket, some may offer the opportunity to go to traffic school to get it dismissed or reduce the number of violation points that go on your driving record. However, if you can keep the violation off your driving record, this can save you hundreds of dollars over several years.

2. Get a Car with Cheap Insurance Rates

Before you buy your next car, compare car insurance rates for the models you’re considering — believe me, it affects your car insurance as well. 

The vehicle you drive affects your car insurance premium, mainly if you buy collision and comprehensive coverage. Safe and moderately priced vehicles such as minivans and small SUVs tend to be cheaper to insure than flashy and expensive cars.

3. Improve Credit Score

Your credit is a significant factor when car insurance companies calculate how much to charge for your coverage, and it can count even more than your driving record in some cases.

To improve your credit for better car insurance rates, focus on these three steps:

  • Pay your loan and credit card payments on time,
  • Keep credit card balances well below your credit limits, and
  • Open new credit accounts only when necessary. Applying for too many credit cards may hurt your credit score.

4. Consider Your Location

Few people often consider moving to a different state simply because it has lower car insurance rates, and it’s most likely true for singles and travelers or those looking for places to settle down. However, when planning a move, the potential change in your car insurance rate is something you will want to factor into your budget.

5. Take Leverage on Multi-Car Discounts

Suppose you obtain a quote from an auto insurance company to insure a single vehicle. In that case, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances, they are willing to give you a deal if it means you’ll bring in more of it.

Every insurance company offers unique ways to lower your car insurance premium. Ask your agent to review your possible savings to make sure you’re getting all the discounts you’re entitled to. 

Most likely, you can get more discounts if you are working with an independent insurance company. That’s when Harbot Insurance can come to help.

6. Get Insurance from the Same Insurer

Many insurers will give you a difference if you buy two or more types of insurance. So it’s often best to get your car insurance from the same insurance provider. 

You may also get a reduction if you have more than one vehicle insured with the same company — it sounds like this is something worth investing in. Some insurers also reduce the rates for long-time customers. However, it still makes sense to shop around, especially if other companies may offer you more benefits and coverage. 

7. Get Low Car Insurance at Harbor Insurance

As an independent insurance agency, Harbor Insurance knows what options you have for your car insurance. 

As one of North Carolina-based insurance providers, we aim to help you determine the most appropriate coverage and find the best options with top-rated carriers. In as easy as a 30-minute consultation, we can let our team of skilled licensed agents help you today.

Final Thoughts.

There you have it — 7 tips on how you can cut costs on your car insurance. Surely, there’s still a lot more you can do when cutting costs with your insurance premium, but start with these 7 and you’ll definitely find an insurance coverage worth paying for.

Nothing really beats feeling safe while driving down the road knowing you are insured. If you’re looking for a reliable insurance agency near North Carolina, then don’t forget to book an appointment with us today, and let’s help you get clear on the right insurance coverage that will change your life.


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