How to save money on car insurance

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3 min read

If you want to drive, car insurance is one expense in which you don’t get a say. It’s a bummer (we get it), and in tough times, seeing those monthly premiums leave your bank account can sting. Most drivers spend around $2,000 a year on their auto insurance, and the lowest it usually goes is around $600. And as with everything, prices are going up.

But while car insurance can feel like a racket (until you reverse into a fire hydrant), if you’re smart about it you can make the agents work for you.

That’s because there’s fierce competition to get you and keep you as a customer. If you do your research and play your cards right you could find yourself making some easy savings. According to the experts, customers could cut their costs by anywhere between 15-40%.

Got your attention? Then let’s take a look at some nifty tricks to help you save some cash on your car insurance.

shop around

We’d all rather be shopping for sneakers or Carribean cruises, but if you put in the time before you buy then you can make sure to snap the best car insurance deal for you.

Your insurance rate is determined based on your individual factors—what kind of car you drive, your track record etc.— and each provider weighs these factors up a bit differently.

That means it’s always worth getting several quotes before making a decision. You never know which policy will come up trumps.

switch it up

As we say, the competition to bag customers is fierce and it's common for providers to offer deals to customers that switch.

chase the deals

Depending on your circumstances there could be discounts available to take advantage of. If you only drive a small amount each year, you may qualify for a low-mileage discount. Sometimes there are discounts for bundling your policy with home or travel insurance, if they are offered by the same provider.

Some providers offer discounts for certain professions, or if you are a student. And lots of them offer discounts for their most loyal customers.

shop local

It’s easy to think that the only insurance policies worth getting are the ones you see flashed up in Super Bowl ads. But local providers can be just as quality—and may well be cheaper.

drive safely

Hells-to-the-yeah! Driving safely actually saves you money. That’s not the only reason to keep your eyes on the road but it’s a sweetener. Insurance companies reward good drivers with lower premiums and sometimes offer discounts for cars with extra safety features too, like anti-lock brakes.

There are lots of things you can do to save a few bucks on your car insurance, but when it comes to calculating your premiums, the bulk of this comes down to your car's mileage, safety features and its total value.

If you’re wondering how much your car is worth, take a minute to check out our valuation tool. Every day at Peddle we figure out a fair price for old cars and make an instant offer. If your car isn’t worth insuring in the first place, it may be a good moment to say yes! We’ll send someone to pick up your car, hand you a check and you can move on up with a new car (and lower premiums).