5 Tips to Reduce Your Auto Insurance Costs

For many people, auto insurance is one of the most expensive things they pay each month. The good news is that there are ways to reduce your auto insurance costs and still get quality coverage from your provider. Here are five tips that can help you cut your monthly auto insurance bill

1) Shop Around

It can be tempting to choose your car insurance provider based on price alone. But it's important to make sure you're getting a good deal. 

Even small differences in premium can really add up over time, especially if you stick with one company for an extended period of time. 

Take some time and shop around for new quotes every so often; doing so regularly can help you find a better rate that could potentially save you hundreds of dollars in premiums over a year or two. 

Just make sure you consider other factors aside from cost; if coverage is poor or customer service is lacking, it might not be worth it to go with a low-priced carrier.

2) Don’t Get Stuck with the First Offer

When purchasing auto insurance, it’s natural to want your first quote from a provider. After all, you don’t want to waste time comparing rates with different companies. 

But that might be exactly what you need to do in order to get a good rate. Most people don’t realize how easy it is for rates from different providers to vary by as much as 30%. 

Make sure you take some time shopping around before getting stuck with your first offer.

3) Buy Certain Kinds of Cars

The type of car you buy can have a big impact on your auto insurance costs. In particular, sports cars and SUVs cost more for insurance. 

If you’re looking for ways to reduce your auto insurance, keep that in mind as you start researching new cars. Instead of an SUV or luxury sports car, 

consider buying a smaller car or something more affordable. Of course, if your budget won’t allow it, there are other ways to reduce your monthly premium—keep reading below!

4) Know What Kind of Car You Drive

According to studies, people that drive small cars and SUVs are more likely to get into accidents. All other things being equal, 

they will pay more for insurance than someone who drives a truck or SUV. So figure out what kind of car you drive and compare auto insurance rates with companies that insure similar vehicles. 

You can also call up your current provider and ask them about getting discounts for certain types of cars. For example, 

if you have multiple policies with one company, they might be able to offer a discount if you own a certain type of car or another at home or work. It’s worth asking about!

5) Prioritize Safety Features

Many auto insurance companies offer a discount on your car insurance if you install certain safety features. 

These discounts can be substantial (10 percent or more) and could save you hundreds of dollars per year. Try to find an auto insurance company that will help you add important safety features like anti-lock brakes, 

electronic stability control, airbags, and backup cameras at a discounted rate. You may even want to consider bundling these various discounts into one plan for added savings. 

5 Tips to Reduce Your Auto Insurance Costs