How I Survived on Car Insurance: Four Approaches to Lowering Your Premium

Owning a car and getting behind its wheel comes with a lot of responsibilities. And one of them is getting car insurance to protect you and your car.

Car insurance is not really an optional expense. Do you own a car? Then you need to do some coverage on it.

As time progresses, it is very common to see your premium increase. This is because your rate can vary greatly depending on a host of factors: your credit score, types of policies and coverage limits, driving record, age, and gender.

It can also vary depending on your zip code and your insurance company.

So what can you do when you see your premiums creeping up and up? We are sharing advice from four people who managed to reduce their rate through various methods.

Should I compare my car insurance premium to others?

So you notice that you are paying more and more for car insurance. And you may think that comparing the average car insurance rates in the nation and your state is a good idea.

The average cost of car insurance in the US is $ 1,427. It breaks down to $ 118.92 for a month.

But if you are 40 years of age, the credit score and clean driving record are strong. Insurance is based on so many factors, it is very unlikely that those average numbers match your characteristics.

It can be helpful to compare so that you know if you are paying too much or not, but Do not take too much stock in average car insurance rates.

This is a good start, but let’s take a look at what is affecting your car insurance:

Have you seen your car insurance premium increase? Why here

It may seem that your insurance premium is increased without any reason.

Here are some reasons why an increase in the cost of your insurance premium can be seen:

File a claim

When you file a claim after an accident, and you are at fault, your insurance rate usually increases by a certain percentage.

This jump in your rate usually stays on your policy for at least three years.

Serious traffic violation

More serious traffic violations, such as driving recklessly, high speed, driving under the influence, or unloading after an accident, can all cause your premium to rise.

By the way, all this is given below in your driving record, which insurance companies use to determine your car insurance rate.


Not only can the cost of your car insurance be taken to a different state, but uprooting a different zip code in the same city can also increase your premium.

Your credit score is getting hit

Most states take your credit score into consideration when deciding your premium rate.

In fact, 95 percent of auto carriers use credit scores in their underwriting process.

Including a young driver in your policy

Car insurance companies typically charge a higher rate of premium for drivers under 25.

And if you add someone who is off a perfect driving record, has been involved in multiple accidents, or has filed too many claims, you will see your premium increase.

Type and extent of coverage

If you reduce your deductible, or work on additional coverage, such as undefined motorist coverage, comprehensive or collision insurance, you can expect your rates to go up.

Switching cars

Trade your old car for a new one?

If your new car is susceptible to theft, expensive to maintain and repair, and at least stellar safety repairs, your rate will most likely show a bump.

Ways to reduce your car insurance premium

Good News? There are definitely ways by which you can save car insurance.

Here are some hints on how you can reduce your car insurance premium, from those who have done it themselves:

Switch car insurance companies

Michael Lacy lives in Houston, Texas, and is a financial teacher at Winning to Wealth.

He decided to change the car insurance carrier on his two cars. This saved him $ 300 for a six-month term.

He had full coverage on both his 2013 Chevy Malibu and 2015 Chevy Equinox.

“I always shop for a new carrier at the beginning of every year, just to verify that the rate I’m paying is competitive,” Lacey says.

“Sometimes I get a quote that’s too short, and other times my current carrier is within the ballpark of new quotes and I wouldn’t switch at all – but it certainly doesn’t hurt to be aware . “

Boost your credit score

A few years ago, Victoria Pierre had a credit score in the low 600s. As her score was considered a subprime, she needed a co-signer on her loan for a used car.

“When I was paying $ 100 a month for a pretty basic insurance policy,” says Pierre, who writes about car insurance for

“But as I worked to pay off my debt and improve my spending habits, my credit score increased and my insurance premium steadily went down.”

Pierre now claims a score of 807 and is making the lowest monthly payment he has ever paid as a car owner.

“If your score is improving and you don’t notice a change in rates, then it may be time for your provider to call or shop for a new one,” says Pierre.

Track your driving habits with an app

Some carriers have an app where you can track your driving habits such as speed, braking and time of day while on the road.

This is what Sam Harillac did to save on his premium. He installed AllState’s DriveWise app on his phone to track his driving habits. In return, he received a discount on his premium, as well as money back for being a safe driver.

He saved about 8 percent on policies for his 2012 Hyundai Sonata and 2017 Hyundai Santa Fe.

“Sometimes it’s as easy as downloading an app on your phone,” says Horlake, a personal finance expert and founder of How to Fire.

“Any interested person can contact their insurance agent to see if programs are available.”

Research quotes before getting a new car

When Gianeta Palmer, a writer living in Gainesville, Georgia, started making noise in her car every time, she soon realized that it was time for an upgrade.

After months of searching, he narrowed my search to three SUVs: a Nissan Rogue, Jeep Cherokee and a Ford Escape.

In addition to checking the prices on these SUVs from various websites, he compared car insurance prices online and spoke several times with his agent.

Her discovery: Car insurance rates for sports cars are more expensive, with the Mustang being stolen more often than other comparable vehicles.

What’s more, he found that an old vehicle is more difficult to repair in the event of an accident because parts are harder to find, and cars are not worth that.

He landed on a Ford Escape, got full coverage, and Saved about $ 200 on her annual premium.

“I saved money on my car insurance by buying a new vehicle, and changing the car I drove.”

Will it work for me?

As you can see, there are ways that you can bring down the cost of your car insurance.

Depending on your situation, you may want to try a combination of these things as a way to get started to reduce your car insurance payments.

It is important to note that trying these tips will not always guarantee you a low premium. And if it works, the percentage or dollar amount will always be different.

But it’s always worth a shot because there are only benefits to trying these things.

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