Ways To Save Money On Car Insurance

save on car insuranceUnless you live in an area with excellent public transportation, having a vehicle is a necessity for most families. Since drivers aren’t able to control the cost of gas or always know when repairs might be necessary, it’s important to manage other vehicle related costs when possible. Luckily, there are several ways to save money on car insurance.

Compare Rates Between Different Insurers

Car insurance costs can vary tremendously between carriers. Using a service like Rates.ca allows buyers to compare multiple quotes from different insurance companies. It’s always a good idea to check prices at least once a year to make sure you aren’t paying more than you have to for car insurance.

Search For Multiple Policy Discounts

Most families with multiple vehicles know that insuring them with the same company saves money, but you might be able to save even more by combining a homeowner’s and auto insurance policy. It’s worthwhile to ask you current carrier if they give discounts for having multiple plans.

Look For Other Potential Discounts

Types of things that can translate into auto insurance discounts include

  • Owning a home
  • Having a good credit score
  • Having continuous auto insurance
  • Signing up for online statements and payments
  • Being a member of certain credit unions or organizations
  • If you have a teen driver, look for good student or driver’s education discounts

Be A Safe Driver

Getting speeding tickets not only costs money in fines but often increases auto insurance costs if points are added to your driving record. Multiple tickets in a short period of time could even lead to cancellation of an auto insurance policy. The best way to avoid the police is to obey the speed limit, but if you do find yourself with a traffic ticket, look into taking a driver safety course to reduce fines or points added to your driver’s license.

Insurance companies obviously don’t want to see drivers with multiple accidents or things like DUI’s or reckless driving citations. For your own personal safety as well as insuring a good driving record, make sure not to text and drive or get behind the wheel if you’ve been drinking alcohol.

Do You Need Full Coverage?

Driver’s need to always have liability insurance that meets state requirements, but you may not need full coverage. If your car is older and paid off, and you can afford to replace it out of pocket in the event of an accident, it might be time to drop comprehensive coverage. A good rule of thumb is that if your annual car insurance premiums are worth more than 10% of the value of your vehicle, it’s probably time to switch to a liability only policy.

Pay Premiums In Full

Most car insurance companies offer a discount if you can pay the full policy amount at the beginning of the term. Even if they don’t offer a discount, there is usually a billing charge of $2-$4 per month if you make payments, so it’s better to save up and pay all at once.

Although insurance is a necessary cost driver’s can’t erase completely, there are several ways to save money on car insurance premiums. If you aren’t sure what discounts your company offers or if you are eligible, it’s certainly worth the time to call and ask.

Image: Freedigitalphotos.net/krisnan

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Written By
Sydney White is a Texas-born stay at home mom who enjoys spending time with her family, bargain hunting and, of course, writing. She is currently the editor-in-chief of Snipon.com.


  1. Regarding insurance, I saved some money (although it wasn’t much, just under $20/year, but every little bit counts, right?) by combining my home and auto insurance to be under the same provider.

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