Cheap Car Insurance | 10 Ways to Lower your Premiums | Roost
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10 ways to get the cheapest car insurance

How to reduce your car insurance premium

Car insurance can be confusing. Prices vary by state, neighborhood, the type of car and how much and where you drive. Your credit score and accident history also influence your rate. And sometimes, the cost of a similar plan from one carrier can be significantly lower than from another. We can help you find cheap car insurance, even if you decide not to change providers.

So the short story is this: If you’re looking at all of your monthly expenses and thinking car insurance might be a place where you could save a little (or a lot!), you’re probably right.

Here are 10 ways to get the cheapest car insurance rates:

1. Comparison shop for a better car insurance rate

Many people tend to stay with the same auto insurance carrier for years. But the car insurance market is highly competitive and constantly changing. If you shop around a bit, you may find cheap car insurance at a different company. Get at least three quotes. (Want a handy shortcut? Compare insurance companies online with us through Insurify.) 

Roost Tip! Compare auto insurance rates from competing companies every two years.

2. Ask about driver discounts

When you’re shopping for car insurance, ask for discounts. Here are some common discounts:

  • Low mileage. Less time on the road means less risk of an accident. Do you drive fewer than 10,000 miles a year?  Are you a carpooler? Mention things like this to your agent to get a low-mileage discount. Consider usage-based or pay-per-mile insurance programs, too (see below). 
  • Safety/anti-theft feature discounts. Choose a vehicle with safety features like airbags, anti-lock brakes, electronic stability control, and automatic seat belts. Anti-theft devices like a smart key, which most new vehicles have, could get you a discount, too. Smart keys won’t allow a vehicle to be driven if the corresponding key isn’t present.
  • Teacher or professional group discount. Some employers offer discounts along with benefits packages. Many insurance providers also offer discounts to members of professional groups. Farmers Insurance provides discounts to many groups. 
  • Pay the entire six or twelve-month premium at once. Some insurance companies like Farmers and Allstate will give you a discount for paying six months or a year of your insurance in advance. 
  • Sign up for electronic billing. This discount isn’t as common as it used to be, but some carriers will give you a paperless discount if you receive and pay bills online. 
  • Multiple vehicles discount. If you have more than one car, make sure they’re on the same policy for savings.
  • Multiple policy discounts. If you another insurance policy with the same carrier, like life insurance or renters insurance, you may be able to get a multi-policy discount.

3. Don’t pay for what you don’t need it

Take a good look at your coverage. There’s a good chance your auto insurance comes packaged with a bunch of stuff you don’t really need. For example, if you have AAA, then you don’t need roadside assistance with your insurance company. Read through your insurance policy line-by-line, and ask your agent about removing any coverage that you don’t need.

4. Raise your deductible

Reduce your monthly auto insurance premium by raising your deductible—the higher deductible could mean a lower monthly premium (but it also means paying more out-of-pocket in the event of an accident).  Your premium cost could decrease a lot by changing your deductible amount from $250 to $500.

Roost Tip! You don’t have to pay a deductible in the event of a liability insurance claim (which pays for damage you cause others in an accident).

5. Be a safe driver

Cheap car insurance is awarded to those who are safe drivers. Safe drivers get in fewer accidents, which costs insurance companies less, so they reward you with a lower insurance premium. Be a careful driver and you’ll save 5 percent or more on your premium. Most companies will reduce your rate every three years without a traffic violation. Companies like Liberty Mutual will offer you a discount for your clean driving history.

6. Switch to usage-based or per-mile insurance

If you’re a safe driver who doesn’t drive much, consider a usage-based insurance plan such as Progressive’s Snapshot, Allstate’s Drivewise, Metromile or State Farm’s Drive Safe and Save. These plans allow the insurer to monitor your driving habits in exchange for discounts determined by how often you drive, when you drive and how well you drive.  

7. Reduce coverage for older cars 

If your vehicle is paid off and has a low market value, it may not make sense to carry full coverage.  You can skip comprehensive and collision coverage to lower your car insurance premium since the maximum amount of payout under either policy is limited by the value of your car.  Collision coverage protects you if another car hits your vehicle.  Comprehensive coverage helps repair vehicle damage from theft, vandalism, weather, animal crashes, floods, and fire.  

8. Buy an insurance-friendly car

A car that is expensive to repair or one that had a high sticker price to begin with costs more to insure. Avoid excessively expensive or sporty cars.  And, consider going green. Insurance providers such as Travelers, Farmers, and Liberty Mutual offer discounts for hybrid or alternative fuel vehicles.

9. Bundle your car insurance with rent insurance

One of our favorites at Roost, bundle your insurance needs with the same carrier to save. Most likely, you need renters insurance — and if you need car insurance too, companies like Progressive and Farmers will give you a discount. 

10. Improve your credit score  

Many insurance companies use your credit score to calculate your rate based on how good or bad your credit is. As you improve your credit score, seek out competitive quotes. Make sure you review your credit score to contest any credit reporting errors you find on your report.  If you improve your credit score over time from the low 600s to the 700s, you’ll start to have companies offering you cheap car insurance.

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(Psssst! Roost partners with Insurify and over 200 insurance companies to help find you the best quote. And, your state’s minimum car insurance requirements are pre-loaded into the options. Check it out!)
A quick note! Our goal is to gather and share info that’s up-to-date and helps you make great decisions as a renter. That said, the information you get directly from a provider could be a little different. Make sure to review their terms and conditions directly; and, if you see anything here that needs to be updated, please let us know! Advertising disclosure
Last Updated: October 23rd, 2020