8 Ways to Find the Cheapest Car Insurance Possible

More than 90% of American households own a car or two – so you’re probably familiar with how expensive driving a car can be. Especially the auto-insurance. Insurance doesn’t come cheap and if you choose the wrong insurance company you could be paying hundreds of extra dollars every year. So, what if you knew how to find the best deal? Here are 8 ways to find the cheapest car insurance possible.

1. Shop Around to Get the Best Deal

It seems like all insurance companies try to market themselves as the cheapest out there. But the price of your policy can vary depending on many factors, so the company that offers the cheapest quote to your neighbor might not be the cheapest for you. The only way to find the best deal is to shop around. According to a study, 38% of American haven’t shopped around for a new policy in more than three years. If you fit into this percentage you could be spending an extra $416 per year.

2. Don’t Ignore Local and Regional Insurers

Across the U.S, four large companies handle more than half of the nation’s car insurance. The companies are Allstate, Geico, Progressive, and State Farm. But, it’s worth checking quotes from smaller insurers that are local to your region. Usually, smaller companies have better customer service satisfaction ratings than the big names and they might offer competitive rates, too.

3. Check for Discounts

There are a number of discounts that can be applied to car insurance policies. These include reduced prices for customers who bundle car insurance with other policies, have a clean driving record, or own a car with anti-theft or other safety features. Additionally, the price of a premium could be cheaper if you pay the annual costs up front, rather than in monthly installments.

4. Pay Your Bills on Time

Unless you live in California, Hawaii, or Massachusetts your credit score plays a significant role in determining the price of your car insurance policy. If you’ve got poor credit, you could be paying hundreds of extra dollars per year, compared to those with a good or excellent rating. To improve your credit rating, you should pay your bills on time and reduce your debts. For more in-depth information, read 5 Ways to Increase Your Credit Score Fast.