Comparing Car Insurance to Save Money

Everyone wants to save as much money as possible on their cars, and comparing car insurance rates is a cost-effective solution to keeping your car expenses affordable.  Studies show that people stick with the same insurance provider for years, but chances are you are paying too much for car insurance.  Comparing car insurance policies can help you find an inexpensive rate on the market.

Comparing Insurance Policies on the Internet

Searching online for car insurance allows you to compare several policies from different insurance providers at the same time, making it easier to shop for affordable rates, compare premium, and analyze coverage.  Online comparison sites provide a list of car insurance policies that fit your budget and insurance requirements.

Because most providers have their own regulations and rules, they offer differing insurance rates for car owners.  One agency may provide an affordable policy; whereas the exact same coverage may be cheaper through another provider, which is why comparing insurance policies is crucial to saving the maximum amount of money.  If you know the type of coverage you want, you can research the available prices and choose one within your designated budget.

Save Money on Car Insurance

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cars by Philippe Put, on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.

Finding a Policy with Additional Discounts

Many insurance providers offer additional discounts for car owners, and comparing insurance discounts from the various providers allows you to obtain the greatest discount available on the market.  When reviewing potential insurance policies, you should also research any qualifying discounts to help save money.

Driving Safely

Many companies offer a safe-driver discount for those who have a clean driving record for a certain period of time, which is generally three to five years.  As long as you are not involved in a car accident, you can purchase a more affordable policy.

Assuming a Higher Risk

Assuming a higher risk can decrease your coverage, and you can choose to drop your collision coverage or purchase a policy with a higher deductible.  Higher deductibles cost less on current rates, but if you are involved in an accident, then you will pay more money directly out of pocket.

save money on car insurance

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Purchasing an Older Car

Most insurers offer low-cost coverage for older cars because the value of the car is less, and you may only want to purchase the minimum amount of coverage.  If you spent less than $2,000 on your car, then purchasing collision coverage will be more than what your car is worth.

Installing Safety Features

Car safety features not only protect your car from potential accidents and criminal activities but also saves additional money on your car insurance policy.  Most providers offer a discount for cars with anti-lock brakes and anti-theft devices, but you will need to verify that the insurer offers this discount where you live.

Combining Coverage Options

If you own your car and house, you can purchase both policies through the same provider, which will save more on your car insurance coverage.  Before combining policies, you should compare the rates of both policies through various insurers to ensure you purchase the least expensive option.

Whether you already own a car insurance policy or are searching for affordable coverage, comparing insurance coverage through different providers helps save money on car expenses both now and in the future.

Jesse Fin
 

Jesse worked as a journalist for a large tv station in Korea in her past life. She now works full time at home as a blogger and loves to help her friends manage their personal budgets.

Click Here to Leave a Comment Below 3 comments
[email protected] - November 19, 2013

That is true. Most of the time, the better your car is the better the rate of your insurance is although I do sometimes find a hard time looking for use for those safety features. I’m more of a classic kind of guy, not relying on technology to get my stuff done but it could be fun.

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    Arnel Ariate - November 20, 2013

    Hi, Jay. Thank you for visiting us here in Money Soldiers. We need to weigh carefully whether the additional cost we invest in our car’s safety features can be offset by the savings we gain in our car insurance premiums. 🙂

    Reply
Nick | Millionaires Giving Money - April 30, 2014

You should definitely check for cashback offers. According to money saving expert some motorists insure their car for free after they take advantage of cashback.

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