Here's How to Lower the Cost of Car Insurance

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Drive Smart, Save Money on Car Insurance

Feeling like your car insurance premium has gotten out of control? It probably has—the average premium jumped 19–26% last year, according to Consumer Reports. If you're car shopping right now, choosing a vehicle that’s cheaper to insure can help you save. With lower car insurance, you can budget more toward the cost of a car, an important factor when vehicle prices have also increased.

Let’s walk through which cars are easiest on your finances and the steps you can take to lower your premium now.

Best Cars for Lower Insurance Costs

A recent Bankrate article indicates these vehicles are some of your best options:

• Subaru Outback – Reliable, safe, and a long-time favorite for affordable insurance.

• Honda CR-V – A compact SUV with excellent safety scores and budget-friendly premiums.

• Mazda 3 – Sporty and stylish, yet insurance runs about 20% lower than many sedans.

• Kia Forte – A well-priced compact car with lower-than-average coverage costs.

They have good safety ratings and lower repair costs, both major factors in what you’ll pay for insurance.

Vehicle Features That Will Help You Save

Insurance companies offer discounts for features that prevent accidents and theft. When shopping for a car, look for:

• Blind-Spot Monitoring – An indicator to prevent side collisions.

• Rear-View Camera – Helps avoid parking lot fender benders and pedestrian accidents.

• Automatic Emergency Braking – Slows the car before a crash.

• Car Alarms, Immobilizer Devices, Vehicle Recovery Systems – Prevent the car from being stolen.

And if your current car has any of these features, be sure to point them out to your insurance agent to ensure you receive any discounts you may qualify for!

Five Simple Ways to Lower Your Car Insurance Expenses

Already driving or picked a car you love? Here are a few practical tips to reduce your insurance bill no matter what you drive:

1. Get a Quote Before You Buy and Then Every Year or Two of Ownership

Before signing anything, call your agent. When you buy a new car, dealers will often contact your insurance company, but this can prevent you from comparing premiums ahead of time. Once you own a car, experts recommend re-shopping for policies every year - the insurance agents I know all insist they want to help.

2. Compare Rates

Different companies = different rates. Call two or three companies for quotes or work with an agent representing multiple carriers. You could save up to 20%.

3. Raise Your Deductible

Going from a $500 to $1,000 deductible might reduce your premium by 25%. Just make sure you can find the $500 if you have an accident and have to cover repairs.

4. Ask About Discounts

Bundling your policies, joining an auto club like AAA, reporting low mileage, and signing up for auto-pay are all ways to score extra savings. Ask the agent what unique discounts are available. I saved 15% once I called and let our insurance know I was working from home, and $5/month for signing up for auto-pay.

5. Mark Your Calendar

No one wants to call insurance companies - can't they just text? LOL. Spring is a great time to clean up your insurance policies and ensure you're getting credit for the discounts you qualify for. But we all know it won't get done unless it's on the calendar. Make a yearly phone call to your insurance agent a recurring event.

Being Proactive, Not Powerless Pays

Paying for car insurance can be frustrating, but it's crucial when you need it. If you're satisfied with your current provider or find only small savings with others, switching might not be worthwhile. However, by being mindful when purchasing a new car and reviewing your policy annually, you can avoid overpaying during tough financial times. Remember, your insurer won't know your driving habits or your car's features unless you inform them!

If you’re shopping now and want to be extra sure you're getting the best deal—not just on insurance, but on the car itself—Buyer for Hire's Deal Scan was made for you. We’ll help you evaluate the numbers and avoid hidden fees or overcharges, so you can feel totally confident in your next big purchase.

Reference:

Bankrate. (2024). Cheapest cars to insure in 2024. Retrieved from https://www.bankrate.com/insurance/car/cheapest-cars-to-insure/

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