The 17 Best Tips to Pay Less for Car Insurance

You need car insurance – it's the law. What you don't need is to be paying too much for car insurance. That money could be going into your savings account or towards a new car, not your insurer's pockets. Learning the different ways you can save money on car insurance can help you hold onto more of your hard-earned cash.

Keep reading to find and keep the cheapest car insurance possible—17 tips in all!

  • Know what you're buying and where to start with the different types of car insurance
  • How spending some money on anti-theft features for your car could save you up to 30% on your premiums
  • Ways that life events like getting married or buying a house could potentially reduce your rates by 47%
  • What actions you can take for cutting car insurance costs by up to 50%

Know what you're buying: Where to start with the different types of car insurance

Know what you're buying

Before jumping into the tips for saving cash on car insurance, you should know what basic types of car insurance are out there. These different kinds of auto insurance each require their own unique methods to cash in on a lower rate.

Here are the basics:

  • Liability insurance icon

    Liability insuranceAlmost every state requires liability insurance. This covers a set amount of damages to property and people injured in accidents where you're at fault. If these damages go over this set amount, you could be sued for the remaining balance. Also, liability insurance won't pay for your medical bills or repairs for your car – you need comprehensive and collision insurance for that.

    For a very simple exaggeration of how liability insurance works, imagine you had $50,000 worth of liability insurance and got in a wreck that caused $100,000 worth of damage. In all likelihood, you could be sued for the remaining $50,000 your insurance didn't cover. Shelling out for the right amount of insurance here can save you cash in the long run.

  • How to save money on liability insurance icon

    How to save money on liability insurance: While there are tips that help, the biggest way to cut costs here is to have a safe driving record. It lowers your monthly or annual rate for liability insurance.

  • Collision insurance icon

    Collision insurance: If you want your car to be covered in case of a wreck, collision insurance is the way to go. Unlike liability insurance, collision plans have a deductible, which says how much money you pay upfront for repairs before your insurance kicks in and covers the rest.

    Say you drive a $20,000 car, and collision insurance costs $200 a year. You drive it for two years before totaling it in an accident. Your car probably depreciated in value a few thousand dollars, but in this case paying that extra $200 could have saved you over ten thousand dollars – and that payment could have been even cheaper by following the tips in this guide.

  • How to save money on collision insurance icon

    How to save money on collision insurance: Saving money on collision insurance requires choosing a safe car and not driving like a maniac. We share more tips below.

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  • Comprehensive insurance icon

    Comprehensive insurance: Cars that get stolen, wrecked by natural disasters, or vandalized all get covered by comprehensive insurance. Basically anything that damages your car other than a wreck falls under this type of coverage. Like collision insurance, comprehensive insurance has a deductible.

    Once again, say you drive a $20,000 car, with your comprehensive insurance making you shell out $150 per year. After five years you drop coverage after spending $1,750. That's when a hailstorm hits, doing $2,000 of damage to your car. Continuing with your comprehensive would have saved you $250 on repairs – or thousands of dollars if your car was stolen instead of damaged by the weather.

  • How to save money on comprehensive insurance icon

    How to save money on comprehensive insurance: Your driving actually won't affect your comprehensive insurance payments. If you install different security measures that make your car less of an attractive target for thieves, that will reduce your comprehensive costs.

    Different types of insurance each require their own tips for lowering your rates. Knowing the best ways to lower your specific kind of insurance can help you save a lot of money in the long run.

Spend a little money and get a big discount on car insurance

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Purchases big and small can result in lower rates on car insurance. Buying anything that makes your car safer or harder to steal usually results in your insurer cutting your rates. In some cases, spending only $20 can result in a 5% to 15% discount on comprehensive car insurance. That means you could go from shelling out $1,200 a year for car insurance to $1,020.

1. Etch your VIN onto your windows

Etch your VIN onto your windows

One of the best tricks to lower your insurance comes from etching your VIN into your windows. That's where the aforementioned 10% to 15% discount on comprehensive car insurance comes from, as told by NASDAQ.

Every vehicle comes with a unique vehicle identification number, or VIN. It's usually found on a sticker pasted onto the driver side door of a vehicle. This number can be the bane of a car thief's existence. Since selling or transferring a car's title requires running the VIN number through a federal database, it's an easy way of identifying whether a vehicle has been stolen in the past.

Etching this number into your windows makes your car less of a target for thieves, meaning insurers don't see insuring it against getting stolen as less of a risky proposition – hence the discount. Allstate explains more about how that works:

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"VIN etching is the permanent engraving of a vehicle's federally registered vehicle identification number (VIN) onto its windshield and windows. VIN etching is often seen as a deterrent to thieves because it not only makes it nearly impossible for thieves to profit from selling windows and windshields, but it also makes it more difficult for thieves to find a way to dispose of the vehicle once it has been stolen. As a result, VIN etching is recommended by police and insurance agencies to protect against auto theft."

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Now like most things that involve messing around with glass, VIN etching may initially seem like a potentially risky proposition. However, the Arizona Automobile Theft Authority offers some assurance that VIN etching won't damage or alter your vehicle's appearance,and the whole process only takes around ten minutes.

However, make sure you don't pay too much for VIN etching. Dealerships often offer to etch the VIN onto the windows of newly purchased vehicles, but at ridiculous prices. Here's Consumer Law Group with an explanation:

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"...Most dealerships charge well over $100 for the service, and $189 seems to be the going rate in Connecticut; some dealerships charge even more. But, it doesn't cost a dealership nearly that much to perform this "service", and consumers can buy a kit [sic] etch the VIN onto their windows themselves for about $20."

At those prices, even people paying just $400 per year on car insurance could see a $20 VIN etching kit pay for itself within one payment cycle, and then save $20 every year thereafter.

Before etching your VIN into your windows, check with your insurance plan and make sure it offers a discount. Also, many newer cars already come with this type of security measure. Check your car's windows and windshield for any existing VIN etching.

If you can't locate a VIN number on your windows, don't get ripped off by unscrupulous auto dealers looking to pad their profits. Find a reasonably priced VIN etching kit by shopping online or in an auto parts store, and then just carefully follow its instructions. Afterwards, give your insurer another call and let them know about your car's brand spanking new safety feature.

2. Install a car alarm

Install a car alarm

Make life a little harder for vehicular bandits and save a little more green by installing a car alarm. The Rocky Mountain Insurance Information Association reports thatthis anti-theft measure can cut your bill by up to 30%.

If you're paying $1,400 annually for your car insurance, these little devices could save you up to $420 on your car insurance. That's money well spent on keeping thieves away and your premiums low. Seeing as Cost Helper estimates that the cost of buying and installing a car alarm falls between $110 and $800, you could see this piece of added security pay for itself within one or two years at those prices.

However, getting the full savings requires installing a passive car alarm, not an active one. The difference between the two gets broken down over at Our Everyday Life:

  • Passive alarms icon

    Passive alarms turn on automatically once the ignition gets shut off and all the doors get closed. The driver doesn't have to do anything to turn it on. The twelve states of Florida, Illinois, Kentucky, Louisiana, Massachusetts, Minnesota, New Mexico, New York, Pennsylvania, Rhode Island, Texas and Washington mandate that insurers must provide discounts for passive alarms, according to the Rocky Mountain Insurance Information Association.

  • Active alarms icon

    Active alarms only turn on when the driver activates them using a remote or other method. Since drivers might forget to turn on their active alarm, car insurance companies offer a smaller discount for their installation.

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Cars Direct offers some great advice on getting a discounted rate for installing a car alarm. Here's a quick summary:

  • Contact your insurance company about whether they offer this discount.
  • Purchase and install the car alarm
  • Collect information on the brand and type of alarm you purchased.
  • Provide this information to your insurance company.

It's as simple as that.

3. Buy a new car

buy a new car

When it comes time to get a new ride, you can also get lower rates – sometimes thousands of dollars lower.

Insure rounded the cheapest and most expensive cars to take out a policy on in 2016. At the top of the heap sits the Dodge GT Viper, coming in at an average annual premium of $4,048. As for the cheapest, that's the Honda Odyssey LX at $1,113. Trading in your roadster for a minivan could net you $2,935 in savings.

Most people probably won't make such a dramatic swap as the one mentioned above. However, knowing what insurers look for when pricing a car's premiums can help you choose a ride whose policy won't break your bank.

An important thing you should note is that higher-priced vehicles don't necessarily mean higher rates. The article brings up the following useful advice:

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"Insurance companies base rates on multiple factors, such as cost of repair, safety ratings and the number of claims on a vehicle model. And that's before taking into account your driving record. So you really can't guess where it's going to fall based on purchase price. You have to run the numbers."

So even if you get a deal on a foreign car, it may cost more to insure since the parts needed for its repairs will fall on the pricier end of the spectrum.

Another somewhat counterintuitive point raised in the article is that safer cars don't always translate into saving money on car insurance:

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"Insurers look at past claims histories, such as how much damage results in a typical crash for that model, the extent of injuries and fatalities -- not just the occupants in the car, but also other parties."

So say you get a big tank-like SUV. If you crash into an unoccupied VW Beatle, your car might not get a scratch but the smaller vehicle will likely get totaled – forcing your insurer to pay out a pricey claim.

Getting a new car can save you a healthy amount of money on your auto insurance rates, but only if you shop smart. Make sure you compare the cost of insurance for every vehicle you're seriously considering buying. It could save you a whole lot of money in the long run.

Life events let you cut your rates without lifting a finger

Sometimes just reaching certain milestones in your life can reduce your car insurance premiums. Buying a house, changing jobs, or getting married can all help you keep money in your pocket – as in up to 47% more cash, in some cases. That discount would rack you up $795 in savings on a $1,500 annual car insurance bill, money that could be spent on clothes, fragrances, massages, or any other way you care to treat yourself (or someone you ❤️

4. Buying a House

Buying a House

That 47% savings on car insurance statistic comes from the Consumer Federation of America, that found home ownership means some major savings:

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"Major auto insurance companies charge good drivers as much as 47% more for basic liability auto insurance if they don't own their home, according to a new analysis of premiums by the nonprofit Consumer Federation of America (CFA). Based on a sampling of insurance quotes across the country for a 30-year old safe driver, CFA found that premiums averaged seven percent higher – about $112 per year – for drivers who rent instead of own homes."

Naturally, you shouldn't take out a mortgage for the sake of lower car insurance payments. If you plan on settling down sometime soon, you can plan on some savings coming your way.

As the educated experts over at Classroom tell it, most insurers provide homeowners with some hefty discounts. That's because car insurance companies see folks who settle down in a home of their own as more stable than renters. If a bank trusts you so much they'll loan you a dollar amount with a comma or two in it, your car insurance company trusts that you're less at risk for expensive accidents or tickets.

To get this discount, Classroom recommends calling your insurer after closing on your swanky new house. Your car insurance provider will want to verify that you actually own your home, so make sure you have a copy of your property deed, mortgage documents, or tax statement handy to send them.

5. Turn 25

Turn 25

Surviving until you're a quarter of a century old means saving money on your car insurance. Males who hit this age usually see a discount of up to 20% and women around 12% to 15%, according to Cars Direct. That means a guy shelling out $800 annually on insurance will see rates fall down to $640, while a woman paying the same amount would see premiums decrease down to around $670.

Car insurance rates fall after turning 25 due to younger drivers taking more risks. The CDC reports that teens and younger drivers speed, crash, and use their seatbelts less than older drivers. That makes them much more risky to insure, so car insurance companies hike their rates for youngsters.

The good news is that these rate discounts should kick in automatically once your policy renews after your 25th birthday. However, not all car insurance companies offer age-based discounts. Contact your insurer to find out whether it factors age into its rates. If not, it may be time to search for a lower price with a different company.

6. Get married

Get married

Tying the knot can mean saying "I do" to both the love of your life and lower insurance rates. You could see decreased premiums between 8% and 22% on average, as reported by the Consumer Federation of America. On a $1,250 annual bill, that could mean taking between $100 and $275 off your premiums and saving it for a honeymoon. Those are some great rates for you to have and hold when your bill comes due.

DMV.org provides a crazy good article about the ins and outs of how and why marriage affects your insurance rates. It turns out that married folks get in fewer accidents than single people, as well as sustain fewer injuries when they are in a wreck. That makes a person who put a ring on it a safer bet for car insurance companies, which gets reflected in the reduced rates for their policies.

To get this rate reduction, call your insurance company after the wedding bells fade and let them know about your newly minted marriage. Be prepared to send them a copy of your marriage certificate if necessary.

After that, the question comes down to whether you should combine auto insurance policies with your spouse. While this multi-policy or multi-vehicle discount can save you money, it can sometimes backfire and lead to higher savings. DMV.org breaks down what you should consider before marrying your policies together:

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"The driving records of both you and your spouse will be factored into your new premium, so if your spouse has had a number of tickets or accidents, you could actually see your rates rise.Additionally, it may be better to keep separate policies if your spouse:

  • Drives a car model that is pricier to insure.
  • Drives a valuable classic car.
  • Travels many more miles per day/month than you."

If your dearly beloved uses their Ferrari for commuting 50 miles every day into work while you roll around in a clunker, you should probably keep your policies separate for the lowest rates. On the bright side, congrats on marrying someone with such a sweet car.

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7. Join the military

Join the military

Being all you can be also lets you save all you can save on car insurance. Military members can receive substantial discounts on car insurance, but choosing the best option for reducing car insurance prices depends on your specific situation.

For instance, say a service member gets deployed somewhere and can't take their car with them. As Veterans United tells it, they should consider suspending or reducing coverage for a vehicle they won't be driving:

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"The best option for most people is a suspension or reduction of services in the interest of saving money during deployment. While you may typically pay full coverage on multiple drivers, taking off liability, collision and payments and personal injury protection can shave hundreds off of your insurance payments.

Many insurance companies offer a complimentary suspension service to service members faced with deployment to save money without higher fees. Just be sure to stay within the minimum legal requirements and start saving today."

If you pay $100 for the state minimum amount of liability insurance, $250 for comprehensive, and $300 for collision, cutting down to just liability could save you $550 on insurance bills while you're away from your vehicle. To get that discount, just call your insurance agent and let them know you're interested in decreasing your amount of coverage.

USAA stat

Entering the service also gets you access to special discounts from almost every insurance company. However, it also means you can take advantage of plans specifically designed for military members, like USAA. According to its website, USAA members save an average of $376 per year on car insurance, receive a 15 percent discount when garaging their car on base, and can get a 60 percent discount if your vehicle gets put into storage for more than 30 consecutive days.

8. Switch jobs

Switch jobs

Changing careers can cut your premiums in some cases, sometimes up to 18 percent as told in an article published by Quicken. If someone makes a jump from a career insurers hate to one they love, that could mean going from a $2,000 annual bill to $1,640.

Once again, the difference in rates comes down to risk. Allen Harmon Insurance explains why certain jobs pay more for car insurance than others:

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"Your occupation, therefore, affects your car insurance rates for a variety of reasons that include statistics, behavior, travel patterns and location. Certain occupations are more likely to be involved in accidents, while certain personalities and behaviors are more common to specific occupations. Life insurance is higher for people in occupations with greater risk of injury and death, and it's similar with auto insurance."

Think about it like this: If you're a NASCAR driver, your insurer worries your speed demon antics could extend off the track and increase your likelihood of a crash. That means you'll end up paying more. Since most people aren't race car drivers, Allen Harmon Insurance compiled a list of the professions that pay the highest and lowest rates for car insurance:

high low

Pay high amounts for car insurance:

  • doctors
  • lawyers
  • social workers
  • architects
  • executives
  • business owners
  • builders
  • salesmen

Pay low amounts for car insurance:

  • scientists
  • pilots
  • school teachers
  • police officers
  • nurses
  • actors
  • artists

Even if you switch into a career that pays more for car insurance, you can still compensate for this with special savings. Going back to that Quicken article, many insurance plans offer discounts for certain profession. Farmers Insurance in California offers a 15 percent discount for licensed physicians, so a doctor paying $2,500 for insurance every year could cut their rate down to $2,125.

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These discounts vary by state and company, so if you recently switched jobs call your insurer and find out whether you could receive a lower rate.

9. Move to a different state

Move to a different state

Moving across the country can be stressful, but the chance of getting cheaper car insurance might ease some of your pain.

new jersey stat

Every state uses its own specific rules, regulations, and laws for governing how insurers can set their rates. That means insurance rates vary wildly from place to place. For instance, The National Association of Insurance Commissioners found that New Jersey clocks in with the highest average rates in America of $1,334.54 per year. In contrast, Idaho reigns as the king of auto insurance savings with average annual premiums of $639.19.

So what happens if someone with an average rate moves from Jersey City to the land of amazing potatoes? They save a whopping $695.35 on their premiums.

Of course, you shouldn't plan your move around where you'll get the best auto insurance rates. If you find yourself moving to Boise or somewhere else with cheap car insurance anytime soon, letting your insurer know about it will save you a pretty penny.

10. Graduate from college

Graduate from college

Education can open doors in life, not least of all for better car insurance rates. The Consumer Federation of America found that even if two people were equal in all aspects other than education, prices for car insurance could be up to 45 percent lower for someone with a college degree. On a $1,600 annual premium, that would come out to $720 in savings.

Freeway Insurance explains why such a difference in prices exists:

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"The majority of auto insurance companies take into account a driver's education level because there is some research indicating that those with higher education will less likely engage in risky behaviors and have less accidents. Plus, those with higher degrees often have higher incomes, which allow them to pay higher deductibles at the time of an incident, which also lowers their premiums as well."

If you don't have a college degree, you can still save money by looking for an insurer that doesn't use educational attainment as a factor in setting rates. Freeway Insurance offers some tips for hunting around for the right car insurance company:

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"The best way to avoid paying higher rates based on educational degree or achievement is to check with local or online auto insurance companies and see if you must provide education level in order to receive an auto insurance quote. If they do require it as mandatory, then most likely they will be using it as a criteria to determine your pricing, so move on and try to find one of the 40% that do not! If you have a higher education degree, you may want to ask around and see if there are auto insurance companies that will offer discounts on pricing!"

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If you recently graduated college, call your insurer and show off your fancy new diploma to see if you qualify for lower rates. Folks without a degree can find reduced premiums by shopping around for a car insurance company that doesn't base their prices off of schooling for reduced rates.

Lower your rates by taking matters into your own hands

While purchasing discounted items or hitting life's milestones can reduce your car insurance rates, some of the best ways to save money are free. Sometimes simply taking a little bit of action can help you keep your money where it belongs – in your bank account.

Comparison shop

11. Comparison shop

When it comes to auto insurance, shopping around can save you some serious green. J.D. Power found that switching insurers saved people an average of $388in 2015. That's a pretty great incentive for doing a bit of looking around.

For advice on shopping around, Quote.com polled 39 different experts in the insurance field. Here's their advice for finding the best rate available:

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"Be it online, with direct writers or local insurance agents, you have more options than you think. But don't be fooled by coverage cuts – if one quote seems too good to be true, make sure you check that your requests for adequate coverage are being met." – Katherine Jop, VP of Operations, Chase and Lunt Insurance

That means don't just focus on the price. See whether that specific company offers the level of comprehensive, collision, liability, or other form of insurance you need to make sure you're adequately covered.

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"Don't choose your insurer because you like a company's ads. Compare at least three quotes for your insurance, and make sure that you're comparing the same coverage levels. You can save hundreds of dollars a year by shopping around." – Janet Ruiz, California Representative, Insurance Information Institute

In case you're curious, a separate article on Quote.com contains the three companies offering the best cheap auto insurance on the market. Make sure you start your search with these companies, but don't end with them. You can find bargains on great insurance in unexpected places.

Now if only there was a website that let you compare quotes from insurers. If only.

12. Get good grades

Get good grades

Budding scholars can get rewarded for making the grade with good student auto insurance discounts. These savings can be substantial, which helps keep the high rates for young drivers affordable. For instance, State Farm will cut premiums up to 25 percent for students with a high GPA – that's $400 off a $2,000 plan.

As explained by DMV.org, statistics show that these high-performing students get in wrecks less than their peers. That makes insurers see them as less risky to insure, and are more likely to offer them a better rate on car insurance.

insurance claim stat

The article goes on to explain that getting a good student discount requires:

  • Being younger than 25 years old
  • Full time enrollment in high school, college, or a university
  • Maintaining a 3.0 GPA, the honor roll, or Dean's List
  • Showing other proof of good performance if homeschooled

If your insurer offers this discount, getting it just takes calling them up and sending over a report card or letter signed by a school administrator. Do this every time your policy renews to maintain your low rates.

13. Drive less

Drive less

Low-mileage discounts let you put more money in your bank account in exchange for putting fewer miles on your car. An article in the Huffington Post found that someone who drives 5,000 miles per year can pay 8.4 percent less than someone driving 15,000 annually. That could take your rates from $1,300 per year to $1,190.

As for the reason behind the discrepancy, it comes down to (get ready for a shocker)—risk. The article quotes Loretta Worters, vice president of the Insurance Information Institute on the subject:

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It's all about risk, she says. The more miles driven, the greater the chances of being involved in an accident.

If 5,000 miles sounds way lower than the typical mileage you put on your car every year, there's still hope for a low mileage discount. Some specialty plans like Esurance Pay Per Milepromise reduced rates for drivers that put fewer than 10,000 annual miles on their odometer.

To find out whether you should look into these plans, first calculate how many miles you drive per year. Insurance provider Direct Line offers a great tool for taking how many miles you drive in a typical day and converting it into a yearly figure.

For example, say you drive 20 miles on an average day. According to Direct Line, that would come out to approximately 8,000 miles per year. Factor in a few hundred miles of wiggle room for unexpected trips or other occurrences, and you can tell you would probably save some money with the Esurance Pay Per Mile program.

After doing this basic research, you should be ready to call your insurer and find out whether you can qualify for its low mileage discounts, or look around for a different company if it doesn't offer reduced rates for reduced driving.

14. Take a defensive driving course

Take a defensive driving course

Proving you know the rules of the road (here it comes again) makes you seem less at risk of filing a claim for insurers. You can show them your knowledge by taking a defensive driving course, and knock around 5 to 10 percent off your premiums, as told by The Law Dictionary. That's discounts of between $90-180 on a $1,800 annual premium – not bad considering most online courses cost around $30.

As these legal specialists explain, defensive driving courses go over topics ranging from proper yielding procedures to what you should do after getting in a wreck. These courses can either be taken online or in person.

To get this discount, search online for a defensive driving course approved in your state. Typically, the website for your local DMV will list several options. Just sign up, and complete the course.

After completing your defensive driving training, you'll receive a certificate proving that you passed the class. Ship a copy of this off to your insurer, and they'll apply the discount whenever your policy renews. However, you can only get this type of rate reduction once every few years depending on where you live.

15. Let your insurer track how you drive

Let your insurer track how you drive

It may sound creepy, but letting your insurance company install a tracking device in your car can save you around 10 percent on your premiums on average – that's $190 if you're paying $1,900 a year. However, some insurers offer absolutely ridiculous discounts for this specialized form of insurance, typically known as usage-based insurance (UBI for short). State Farm's Drive Safe and Save program offers up to 50 percent off your premiums, while Nationwide's SmartRide program boasts up to a 40 percent reduction.

insurance claim stat

While this section summarizes UBI, for an in-depth dive on how these plans can save you some serious cash, you have to read The Definitive Guide to Usage-based Car Insurance..

Usage-based insurance tracks how you drive using a device that plugs into your car, your mobile phone, or your car's existing systems like OnStar. It uses this information to supplement what it already knows about you – your age, the type of car you drive, marital status, and other factors – to better estimate your risk and set your rates.

Basically if you drive safer, you pay less. UBI plans determine whether or not you'll save by monitoring certain driving behaviors.

Here's what most UBI plans typically track:

  • When you drive: More accidents occur at night or in rush hour, so daytime driving when there's not much traffic means reduced rates.
  • Where you drive: If you don't regularly add triple digits onto your odometer, you may pay less. After all, cars in garages don't get in crashes.
  • How you drive: Hard braking and acceleration increases the likelihood of a wreck. Be gentle with your gas and brake pedals, and your premiums will be gentle with you.

If you're an infrequent, safe driver who avoids rolling around after dark, UBI would probably save you some money. Check with your insurer whether they offer UBI, or use the handy checklist included in Quote.com's UBI article to determine if this type of insurance is right for you.

16. Raise your deductible

Raise your deductible

Comprehensive, collision, and a few other types of insurance include a deductible, which is how much of the cost you'll be on the hook for in an accident before your plan starts paying out. Raising your deductible means your insurance plan is less likely to have to pay out when you file a claim, and will cut your rates in exchange.

The financial gurus over at Five Cent Nickel offer a great explanation of how this premium reduction works:

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"For example, let's say that you reduced your six-month car insurance premium from $600 to $500 by increasing your deductible from $250 to $500. So in this example, you'd save $200 per year in premiums, but you risk paying an additional $250 out of pocket if you file a claim."

In this case, you're basically betting that you'll avoid accidents for two years. At that point, you would have saved $400 on your rates, enough to cover your losses by $150 in case you get in an accident, and pay out $250 so you can meet your deductible.

However, sometimes cutting just a little from your premium can hurt you in the long run. The article's author offers this personal example:

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"When I called my insurance company asking about raising my deductible from $500 to $1,000, I was told that the savings I would earn on my premiums would only be $27 every six months. At that rate, I would have to be claim-free for about ten years in order to recoup the increase in risk I took by raising my deductible."

Before raising your deductible, perform a cost-benefit analysis over how long you'd have to go without an accident before seeing any substantial savings. Find this out by asking an insurer how raising your deductible would affect your rates. If you can save enough money within a few years to make up for any losses in case you do get in a car accident, this could save you some cash.

17. Bundle insurance plans

Bundle insurance plans

Most insurance companies want to be your only insurer, covering all your vehicles as well as everything from health insurance to life insurance.

These companies offer some steep discounts for the privilege of your business as well. Allstate offers up to 25 percent of auto insurance rates and 35 percent off home insurance premiumswhen you insure both of these plans through them. Meanwhile, State Farm will cut you up to a 20 percent discount for adding two or more cars onto an existing policy, which would work out to $300 discount on a $1,500 annual premium.

DMV.org offers a breakdown of all the different things you need to qualify for a multi-vehicle policy or one provider insurance bundle.

If you're looking to just insure all your cars on one plan, here's what you should know:

  • All the cars insured under a multi-vehicle policy must be under your name. That means if your spouse has a separate policy for their car, they have to switch it over to you.
  • These cars must only be driven by the policy holder, or people in their household.
  • All cars must currently be in use, not in storage.

If you can check all the boxes listed above, you can save on your car insurance by calling up your provider. The savings should kick in whenever the policy renews.

For those interested in combining multiple types of insurance with one company, it's a simple process as well. Call up your insurer, and if they offer multiple lines of insurance see how much you can save by bundling. If the company's offer seems unsatisfactory, it's time for some shopping around.

You can pay less for car insurance!

You can pay less for car insurance!

Keeping these tips in mind can help you reduce your rates and save hundreds of dollars. Whether by purchasing rate-reducing devices, checking off premium-slashing life milestones, or putting in some elbow grease to keep your auto insurance costs down, you can have more money to spend on a swanky vacation or paying down debts.

Interested in how to save more on car insurance? Take a look at these reviews of these car insurance providers and the definitive guide to cheap car insurance:

And, of course, always be sure to compare prices from multiple car insurance companies.

Do you have a tip that's not listed here that can let others pay less for car insurance? Tell the world! Leave a comment below.


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