Tips for Finding the Cheapest Car Insurance

Car toy and calculator stay on the dollars (Installation on the theme of car purchasing and auto credit)

On average, car insurance in the United States costs $1,553 per year ($129.42 per month). For many, that price is too high to shoulder comfortably. As a result, people might focus on finding the cheapest car insurance possible that aligns with state standards and offers the coverage they require.

Fortunately, there are many strategies for reducing the cost of auto insurance. Here are some tips for finding cheap car insurance whenever the need arises.

Consider Usage-Based Insurance

Usage-based insurance involves plugging a small device into your vehicle or using a companion app to monitor your driving habits. Generally, you get rewarded with premium discounts for demonstrating that you’re driving safely, and those can lead to a notable savings.

Pay-per-mile insurance is another approach that can work well for vehicle owners who drive infrequently. While it does cause your monthly costs to potentially fluctuate more, you’re only paying based on the miles you actually drive. As a result, it could be a low-cost option for anyone whose car spends a lot of time in the driveway.

Compare Quotes Every 6 Months

Most car insurance policies last for six months at a time before they’re renewed. At every renewal point, your insurer will provide a new quote outlining what it will charge for the next six months of coverage. As a result, this is the perfect moment to comparison shop, allowing you to make sure you’re getting a competitive deal.

Another reason why getting quotes regularly is wise is that your situation changes. The policy that worked well when you were younger might not make as much sense today. Additionally, any new incidents – like accidents or tickets – or aging incidents can influence pricing, and every insurer handles those situations differently. By comparing policy pricing, you can make sure you’re getting the right coverage at the best price at all times.

Look to Local and Regional Companies

When people think of insurers, large national brands are usually what come to mind. However, local and regional insurers can offer similar coverage for less. As a result, you may be able to get a lot of policy features while keeping your budget in check.

Plus, local and regional options may offer better experiences when it comes to customer service, which could increase your satisfaction. Usually, that’s because smaller insurers need to find a suitable differentiator to attract policyholders, and providing better customer service is a straightforward way to stand apart.

Drop Coverage Limits on Older Cars

For older cars, moving away from comprehensive or collision coverage is worth considering. Often, the maximum payout for a qualifying incident is based on the vehicle’s value. If there isn’t much value there, you may spend far more for the coverage than you’d receive if the car was totaled.

If you want to see if this decision is wise, check the fair market value for your vehicle in its current condition. If the figure is incredibly low, then choosing to put the money you would have spent on comprehensive or collision coverage in savings may be the better choice. Then, if your car is totaled at any point, you have a nest egg to help you move into another vehicle.