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Easy Things You Can Do to Lower Your Car Insurance Payment

Originally published on

No one enjoys writing a check for their car insurance payment, but most of us probably believe the only thing we can do to lower that amount is to shop around. Thankfully, there are other strategies you can use. There are many things you can do to put yourself in the driver’s seat when it comes to impacting your car insurance payments.


Then, once you have done all you can personally do to reduce your rates, the final step is to shop around through an unbiased source like Underground Elephant. Underground Elephant offers a personal quote comparison tool from the nation’s top providers, taking the mystery out of car insurance.


Here, Underground Elephant, founder of the Underground Elephant Scholarship which rewards safe drivers, share easy things you can do to lower your car insurance payment:


Ask first. Before you purchase a new (or used) vehicle, take the time to research how much it will cost to insure. Rates can vary widely based on the make, model and year, so the first step to saving begins long before the car pulls into your driveway.


Go green. Some insurance companies offer a discount for insuring hybrid vehicles. If you are considering one, check with your insurer for specific details on any savings they might provide.


Play it safe. Of course, being a safe driver pays off in many ways, but don’t neglect the impact that a lack of accidents and moving violations in the past three years can have on your premiums. Some companies even offer discounts for drivers who have taken a defensive driving class.


Protect your assets. There are many ways to stay safe – and one is safeguarding your vehicle. Since auto theft is such a prevalent and growing crime, many insurers grant discounts for vehicles with anti-theft devices, and some even offer savings for cars that are kept safely tucked inside a garage.


Maintain your credit. Scarily enough, credit ratings can play a role in your car insurance premiums. Statistics have shown that folks who maintain a solid credit rating have fewer insurance claims, making some companies more likely to pass on better rates.


Bundle to save. When it comes to insurance, there is definitely strength in numbers. The more that you insure with a single company, the better the rate they are likely to give you. That holds true whether you are insuring multiple cars, drivers, or items – like cars, boats, and home. Check with your carrier (and potential carriers) to learn more about what type of discounts they offer – and check any membership benefits you have through your employer, financial institution or other organizations for additional savings.


Drive less. It makes sense that people who are on the road less often are less likely to get involved in accidents. That’s why many companies offer reduced rates for drivers who log fewer miles than the national average and those who carpool or take public transportation to the office.


Increase your deductible. Raising your deductible can result in substantial savings on rates. According to the Insurance Information Institute, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent, while rising to a $1,000 deductible could save 40 percent or more. Just be sure that you have enough stashed in savings to cover the additional out of pocket costs if you were to have an accident.


Analyze your coverage. Work with your agent to see if there are areas in which you could save. If you drive an older model car, it might make sense to drop collision or comprehensive coverage, depending on its value.

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