How To Improve Your Car Insurance Rates

When it comes to making a big purchase, you shop around to make sure you’re getting the best deal right? Why then do so many of us make the mistake of just assuming car insurance rates are the same wherever we go? 

If you were to sit down and make calls to several car insurance companies, you’ll get a range of quotes for comparable coverage. For some folks, the difference from one company to the next can be relatively small. But for millennials, that difference can be up to 8x. That means, for the same level of coverage, one company may charge you $80, and another could charge you up to $640. 

You read that right. And you’re right, that’s crazy.

So, what are your options?

Think Ahead

You may not realize that some of your day to day decisions can impact your car insurance costs going forward.

1. Buying a new car. 

We’re no strangers to the allure of a muscle car, but cars that pack a punch can also cost more to insure. Even seemingly innocuous changes, like an upgrade to a large SUV can increase your premium. On the other hand, hybrids or fuel-efficient cars might lower your monthly cost. If you’re considering a new car, run the numbers within the MagicQuote app to see how the make and model might impact the pricing of your policy. (2)

2. Your credit score. 

This is one of those factors that isn’t obvious. But surprisingly, for many insurance companies, your credit rating has a major impact on the price you pay. In some cases, it can even weigh more heavily than your driving record. Raising your credit score can be a long process, but paying your credit cards on time, keeping balances across credit cards low, and paying off debt can all help to improve your score. (2)

Leverage Discounts

There are a variety of discounts available to drivers that can help you get the best deal with your current car insurance provider. 

1. Bundle up.

You know how buying in bulk usually gets you a better deal? The insurance industry is no different. If you have multiple vehicles or multiple drivers in your household, you may be eligible for a multiple-driver discount. Similarly, if you need multiple insurance policies (think homeowners insurance, life insurance, etc.) there might be an option to bundle your policies together with the same provider to get a better deal. (1) 

2. Measure your mileage. 

Some insurance companies consider the amount of time you spend on the road when issuing policy quotes. If you work from home, or don’t have a long a commute, your low daily mileage could work to your benefit. (2) 

Your Best Bet? Compare Rates

The other tips we listed might save you a bit here and there, but if you’re on the hunt for big time savings (and who isn’t?!), comparing rates is a must. 

1. Shop around. 

We don’t mean just one or two of the big car insurance companies. We’re talking, 5 or more companies (at least). There are a variety of coverage levels, so make sure you understand which level of policy you need, and that the quotes you’re getting are for comparable policies (apples and apples and all that). 

2. Shop around, but better. 

You have to compare quotes to make sure you’re getting the best deal on car insurance, that’s just the way it is. But we get it, the prospect of calling around to a bunch of insurance companies is less than appealing.

The easiest, quickest, and smartest way to save big on car insurance?

Let the MagicQuote app do the leg work for you. We compare over 100 car insurance providers and give you several quotes to choose from. Simply scan your license, select your coverage preference, and in 3 minutes, you’ll have a clearer picture of what your options are. You can even choose to buy from within our app, and the car insurance provider you choose will reach out to seal the deal. 

Category: Insurance 101
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