Car insurance is an annual expense that you can’t escape, but can certainly look to lower year over year if you know where to look. Most of the major insurance companies you’ve heard of all seem to advertise the same thing: peace of mind, stability and always being there for you. What they don’t advertise is the price attached to each of those values, which differ by company and by applicant.
At Prevent A Lemon (PAL®), we hope the following article, including some awesome tools from our friends NerdWallet, will help you secure the cheapest and best rate, allowing you to save your hard-earned money.
1. Use NerdWallet’s insurance company search tool
To start, we recommend using NerdWallet’s cheapest company tool, which summarizes the cheapest insurance companies by state:
This will give you a starting point to begin inquiring directly with the companies. You can also check out their quote estimator by company:
2. Ask for discounts, any kind
Insurance companies vary in their different discount offerings. That’s why it’s important to ask for ANY type of discount. Almost all companies offer military discount, and many of them offer AAA or other automotive affiliations discounts. Try asking about any of the following:
• Multiline discounts, including home, marine and commercial
• Marital status
• College affiliation
• Type of career and driving distance for work
• Anti-theft device installed
• Auto-pay or pay in advance
• Green/hybrid car
• Driving training courses
3. Consider using an insurance broker
Using an insurance broker may turn out to be the easiest and cheapest option. Insurance brokers work for you, free of charge, with a goal of securing you the best rate. They also know what discounts to look for and where they can leverage additional ones from either relationships or years of experience in the industry. Save yourself time, energy and money, and find yourself a good insurance broker.
4. Checkout smaller insurance companies too
Like insurance brokers, smaller more local insurance companies may offer the most competitive rate. Don’t forget to contact companies in your county and state who may not be amongst the big-name insurance companies.
5. Revisit insurance rates regularly
Many of the companies do not require a commitment, meaning you are not locked into a contract; use that to your advantage by regularly checking rates. You may find out, either through a change in your personal life or state wide, there are additional savings to be had. If you do find a cheaper rate, go back to your original insurance company and see if they can beat it for even more savings.