Cheap Car Insurance Rate Quotes and Saving Tips

Other than your loan or lease payments, car insurance is probably the biggest expense attached to your car. With the economy in turmoil, and gas prices at their higher "summer-blend" levels, it may be tempting to consider dropping your insurance. DO NOT DO THIS. Driving without insurance is not only incredibly dangerous, in most states, it's also illegal.

Instead of canceling your Car Insurance policy, make it cheaper. Here are five ways to do that :

  1. Compare before you commit: While all insurance rates must follow state-imposed regulations, every insurance company has different price points, and assesses risk differently. For this reason, it is important to compare quotes from several insurers, before picking one. You can do this easily by using the internet to request quotes, often from many companies at once.
  2. Buy early: If your existing policy is coming due for renewal, either switch companies or contact your current insurer sooner rather than later. As a new customer of a different company, you'll be eligible for new-client specials and discounts. Alternatively, if you contact your existing company, they may restructure your policy so that you pay less, in order to keep your business.
  3. Reduce your coverage: If your car is old enough that the loan is paid off, you might want to consider canceling or reducing just the collision and/or comprehensive part of your existing coverage. Liability and uninsured motorist coverage are generally required by law, while the comprehensive and collision are not. Also, if your car is over ten years old, the insurance pay out, which is based on book value minus depreciation, won't likely be enough to replace the car if you total it. Save money by eliminating insurance that won't help you.
  4. Raise your deductible: Increasing your deductible (that's what you pay out-of-pocket when you make a claim) from $250 to $500 could reduce the cost of your insurance policy by 30%, and if you raise it to $1,000 you could save 40% more. If you have enough money in savings to pay the deductible without hurting yourself financially, this is an excellent way to make insurance cheaper no matter what company carries your policy.
  5. Demand discounts: In addition to discounts for bundling home and auto (or life and auto) coverage with one company, and for having anti-theft devices like LoJack or an engine immobilizer in your car, there are many, many others, but you may have to ask your insurance agent. You can save money by having certain job titles, being a mature driver, having a clean driving record, or only driving a few thousand miles each year, and those are just a few of the standard offerings.

In addition to the tips listed above, you can also make your insurance cheaper – for three years at a time – by making yourself a better driver. If you take a defensive driving class, you can earn a discount of 3 - 10 percent for three years, and when the initial period is over, you can repeat the class.

While it's true that Car Insurance is a necessary debt, it's also true that you can control how large a debt it is. It may never be truly "cheap," but with the right combination of discounts and deductibles, it will definitely be affordable.