Tactics to Lower Your Car Insurance by Thinking Like an Insurance Agent

1Insurance is a sucker’s game. The only way to win is to buy as little of it as you can to avoid major losses and self-insure for the little things.

The following are 15 tricks that you, a Smart Riskologist, can use to slash your car insurance premiums along with your need to complain about how expensive cars are.

How many are you smart enough to put into action?

1. Drive a shitty car.

You cannot be a Smart Riskologist if you drive a brand new car. This is not my frugal opinion; it’s a fact. Put any group 10 economists in a room together, and they’ll disagree on pretty much everything except that buying a new car is a dumb consumer move.

I don’t care who you are, there is no way to make owning a brand new car pan out financially. This is especially true when it comes to lowering your insurance bill.

Owning a fancy new car will also land you the most expensive insurance policy to cover it, even if you have a liability-only policy.

To understand why, just think like an insurance agent would. What would you charge a friend if they asked you to pay for any damage they do to their brand new Corvette? Now, what if they were driving a nicely maintained Toyota Camry that’s a few years old?

Which car is more likely to be driven responsibly, resulting in a lower risk of accident?

2. Own your car! (Like, actually own it)

If you lease your car, you’re already paying too much for insurance (and everything else associated with driving).

Why? Because when you don’t own your car, you don’t get to set the rules about what type of insurance you’ll buy—the person or company who owns it does. And businesses that allow other people to drive their cars are notoriously conservative.

Wouldn’t you be? Would you let your friend borrow your brand new car for 5 years without getting an insurance policy that would replace it if they crashed?

If you lease your car, no leasing agent is going to let you drive their car around without a guarantee that if you crash, they won’t have to pay anything to replace it. You’ll be required to have comprehensive insurance which is, in every instance, a giant waste of money.

If you’re thinking, “Aha, I’m so smart! I skipped the lease and got a loan to buy my car!” you’ve still been had. If you have a loan, you still don’t own your ride! The bank does, and they’ll be setting the rules for your insurance policy until you pay them back every last dollar you owe on it (which is, of course, more than the car was ever worth).

If you want to set the rules for what type of insurance policy you take out on your car and get the lowest rate, buy it outright. If you can’t afford to buy your car with cash, you can’t afford to drive. Keep toning that sexy body on your bike for now.

3. Never purchase comprehensive insurance.

There are two types of car insurance: Liability only and comprehensive. One covers damage you to do other cars, property and people. The other covers, well, everything else. The only thing you need to remember to drastically lower your insurance cost is this: NEVER buy comprehensive insurance.

Comprehensive insurance is for suckers who can’t afford their cars. Since you’re a Smart Riskologist, you bought a nice, reliable ride with a small portion of your available cash, and now you’re free to purchase whatever insurance policy you like.

And damn it, the policy you like is going to be a simple, no frills liability only one that’s a fraction of the cost of comprehensive, you handsome and intelligent insurance shopper, you.

4. Choose the minimum coverages and select the highest deductible possible.

Repeat after me: “I cannot beat the insurance company. They will always win in the end. The only way to level the playing field is to pay as little as possible for the coverage I’m required to have.”

Good job. You now understand the most basic rule of insurance. Never forget it.

So many people are reamed by their insurance company every year because they don’t understand simple math. As a Smart Riskologist, you must vow to never allow yourself to be one of them!

When you purchase your auto policy, buy the minimum coverage your state allows, and check that your health insurance covers auto accidents (usually it will).

“But what if I hurt somebody else?” you ask.

Great question, fellow Riskologist. The answer is:

Even the minimum liability insurance coverage will cover the most likely injuries to another person.

“But what if the worst possible thing ever happens, and I seriously injure a million people!?”

Fear not, fellow Riskologist. Could this happen? Yes. Will it? Probably not! Properly playing the insurance game means planning for the most likely scenarios. Statistics are your friend! To lower you risk even further, stop driving to places you can walk or bike to, lazy bones!

5. Drive less often/lower your annual mileage.

In addition to the car you drive and the insurance you purchase, there are some simple things you can do that make insurance agents actually want to throw cash at you like you’re their favorite stripper. Driving less is one of these things.

An insurance underwriter is concerned with just one question: how likely are you to cause a wreck and cost them a lot of money?

One of the biggest factors they’re going to consider is how much you actually drive. When you’re not in your car, you’re not a risk to your insurance company.

My insurance policy is based on the lowest tier of miles traveled each year—less than 5,000—and I save a boatload of money for it. This is because your odds of being in a wreck increase linearly as you drive more miles. So, cutting the amount of miles you drive by 50% equally lowers your risk of an accident by 50%. Less exposure = less risk.

Get a job closer to home!
Stop driving to the convenience store down the street!
Go for a walk instead of a drive!
Anything you can do to lower the miles you travel each year will lower your auto insurance risk and, therefore, your premium.

You might even look into auto policies that only charge you when you’re actually driving. I looked into MetroMile but, at the time of this writing, they weren’t competitive for me compared to a standard policy.

Simple Tricks To Get Better Rates On Car Insurance

2No one likes to pay the high cost of auto insurance, but it is a requirement by law, so we have no choice in the matter. But, we can choose which insurance companies we deal with, and do everything possible to get the lowest rates. These days, insurance companies are all competing with each other, and they will offer great deals when you are asking for quotes. Of course, you still have to wade through the various quotes to find the one that best suits your needs. The first thing to do is check to see if you are paying too much — which you can do by visiting this handy site. Then, consult the following tips, designed to help you get the best rates on your car insurance:

1. Get Higher Deductibles – The higher your deductible is, the lower your monthly rates will be. You can decrease your premiums by up to 30%.

2. Get Only what You Need – There is no sense in paying for coverage that you are never going to use. For instance, if you have a separate life insurance policy, you probably only need to get the minimum amount of personal injury protection in an auto policy.

3. Take a Defensive Driving Course – Many insurance companies will offer lower rates to those who have taken these courses. If you have gotten a speeding ticket or have been in an accident, taking one of these courses may keep you from losing as many points on your driver’s license, and keep your insurance rates from going up.

4. Get Less Coverage for Older Vehicles – You don’t need to have a high amount of collision or comprehensive coverage for older vehicles that aren’t worth much. If the value of your vehicle is less than 10 times your premium, it isn’t worth it.

5. Get More Coverage – Believe it or not, in some cases you can get lower premiums by getting more insurance coverage. Sometimes the minimum amount of coverage can cost more than additional coverage.

6. Shop Around – Never take the first quote you are given. You could be missing out on a much better deal from another insurance company. It is also a good idea to get quotes every few months even if you already have insurance. You never know, you could be paying more than you need to.

7. Don’t Let Your Coverage Lapse – If you let your coverage lapse, you will be charged a higher rate when you get a new policy.

8. Get a Safer Vehicle – The more safety features your vehicle has, the less your insurance is going to cost. Safe cars are easier to insure than high performance vehicles. Take advantage of safety packages when you are buying a new vehicle.

9. Watch Your Credit Score – The better your credit score, the lower your insurance rates are going to be. This is because you won’t be considered a high risk.

10. Drive Safely – It always pays to be a safe driver and follow the rules of the road. When you have a clean driving record, insurance companies will reward you with lower rates.

Try these tricks to save money on car insurance

4Did you know that at least four of the nation’s largest insurers will give you a discount on your car insurance if your vehicle has daytime-running lights?

That’s one money-saving secret Bankrate.com uncovered in its annual deep dive into discounts available from car-insurance plans.

“People don’t know this stuff,” says Doug Whiteman, insurance analyst for Bankrate.com. “It’s difficult to find all these things and insurance companies are under no obligation to provide you with discounts or even a list of them.”

Daytime-running lights, which are lower-beam lights that automatically switch on when a vehicle is moving forward, are a safety feature meant to make cars more visible during daylight hours.

Lawmakers pressed General Motors CEO Mary Barra for answers on why it took the company nearly 11 years to recall older small cars equipped with a faulty ignition switch and why GM General Counsel Mike Millikin still has his job.

Though their efficacy in the U.S. has been debated and the National Highway Traffic Safety Administration has determined after three studies, the last of which was in 2008, that the lights have “no significant overall effects on …crashes,” they’re gaining popularity in the dog-eat-dog world of auto insurance because they think consumers want daytime running lights, Whiteman says.

“This is a very, very competitive industry and car insurers want your business.” State Farm, Geico BRK.A, -0.88% , Farmers and USAA all offer the daylight-running lights discount while Allstate, Progressive, Liberty Mutual, Nationwide, American Family and Travelers do not. It may be because daytime-running lights aren’t required in the U.S. and aren’t available on all makes and models like they are in Canada and the European Union. GM GM, -2.96% cars, as well as a handful of foreign carmakers like Toyota TM, -3.56% , Volkswagen VOW, -5.88% , Volvo and Mercedes-Benz, do have them as standard installations.

Safety-related bells and whistles on U.S. cars get lots of discount points from car insurers. Anti-theft and passive-restraint features like air bags, for example, score near across-the-board discounts, with nine of the 10 offering them. (See chart below of which insurers offer what allowances.)

Anti-lock brakes, which would seem a given, are discount-favorites for seven of 10 insurers while hybrids or alternative-fuel vehicles only attract concessions from three insurance companies.

Half the insurers will cut your rates if you drive a newer car, usually brand-new up to three-years-old or less, thinking you’re a more conscientious driver when your vehicle is still ding-free. And if you keep the driving record clear of accidents, all but Liberty Mutual will take the prices down.

Many insurers – eight of the top 10 – would prefer if you didn’t drive so much. And if you’re up for letting them install an electronic monitoring device that will track your mileage – and your whereabouts — they will pare prices.

Improve your credit score

3Did you know an insurance company can predict how likely it is you’ll cause a traffic accident by looking at your credit score? They can! If that sounds ridiculous (many people complain about this), the correlation actually makes sense:

People who are less likely to cause accidents tend to be more careful drivers. And people who have higher credit scores tend to be more careful with their money. “Careful” is the operative word.

I don’t know how much you can save (or be dinged) based on your credit score, but the prescription for a lower insurance bill is clear: improve your credit and reapply.

Not sure how to improve your credit score? Try becoming a more careful driver! Clearly, they’re related.

Request citations be removed from your record.

When I was younger, one of my hometown’s finest decided that slowing down to 3 mph at the stop sign miles out in the country in the middle of the night with perfect visibility and no cars to be seen was simply not good enough. (No, I’m not bitter.) He informed me of his disapproval with a $200 ticket.

Since it was my first infraction, I paid the fine and the judge let me take a safe-driving class in exchange for striking the ticket from my record. I held up my end of the bargain, but when I went to apply for insurance again a year later and received an absurdly expensive quote, I learned the local court didn’t hold up theirs!

A quick phone call to the city sorted it out and, a month later, I re-applied and received a quote that was $30/month less.

Take a defensive driving class.

Taking a defensive driving course triggers one of the most lucrative discounts you can get for your insurance premium.

Why? Because the most important question every single insurance company asks when they give you a policy is, “Will this person cause an accident and cost us a lot of money?”

By taking a defensive driving class, you prove not only that you’re willing to learn how to be a safe driver, but that you’re probably a pretty safe driver already, since unsafe drivers are not the type who think about taking defensive driving classes.

Shop for a better rate every year.

This one tactic alone will probably save you more on your car insurance premium than all the other tips combined if you remember to do it every year.

Insurance companies are, first and foremost, businesses. And they’re smart businesses that charge their customers as much as they’re willing to pay for a service that they will rarely, if ever, use.

They know the longer you stay with them, the more you’ll be willing to pay for the convenience of not having to shop around for another provider, so they slowly raise your premiums over time.

They are also extremely interested in stealing customers away from their competitors by offering unsustainably low rates to good drivers to get them to switch.

This is the perfect combination for massive savings. Set a reminder in your calendar once a year to request car insurance quotes from three providers, and you’ll be swimming in coins you didn’t have to send to your insurance company.

This step is incredibly important if you’ve had a big life change in the last year that could potentially lower your insurance like getting married, buying a house, passing 3 years since your last traffic ticket, or turning 25.

Pre-pay your policy as much as possible.

Everyone knows insurance agents love money and statistics just a bit more than the rest of us. And that’s why they know that money today is worth more than money in the future, and they’re willing to give you a reasonable discount to get their hands on it now.

You’ll always get the best insurance rate by paying as much of your premium up front as possible. Six months is usually the maximum.

Smart Riskologist Rule: If you cannot afford to pay your 6-month premium at once, you cannot afford your car. Sell it and start over!

If you’re able to pay your 6-month premium all at once, it probably says that you manage your money well, which says that you probably have better credit, which says that you’re a lower accident risk, which says that you’re worth the investment of a lower premium! (Yes, I know it doesn’t actually work this way).

Request every discount possible

5Every insurance company has a laundry list of obscure discounts you may qualify for but they don’t do a lot of advertising for. Here are some common ones you can ask your agent about:

Occupational Discount: Some professions like policeman, firefighter, doctor, dentist, nurse, and teachers qualify for special discounts because they tend to drive less and/or take fewer risks. Smart Riskologist trick: If your occupation could technically fit a number of different fields, try filling out your application with each one to see which produces the lowest premium.

Affiliation Discounts: Were you ever in a fraternity or sorority? Member of your state’s bar or any other professional group? There could be a discount for you. Ask for it!
Paperless Statement Discount: It costs money to stuff and mail envelopes, and some insurance companies will give you a discount if you opt for paperless statements.

Armed Forces Discount: If you are or ever have been in the military, many insurance companies will offer you a discount. I have no idea if this is based on actuarial tables or if it’s just gratitude.
Garage Parking Discount: If you park your car in a garage instead of a driveway or on the street, it’s at a lower risk of theft/vandalism, and you can get a discount accordingly. Only applies to suckers with comprehensive insurance.

Anti-Theft Discount: Ask your provider if you can get a discount for having an anti-theft system installed in your car. Only applies to suckers with comprehensive insurance.
Good Student Discount: If you’re in school and you have good grades, you’re probably a lower insurance risk; most providers will give you a better deal if this is the case.
Early Switch Discount: As a marketing tool, some insurance companies offer a discount if you switch to their service at least 2 weeks before your current policy expires.
Not sure what discounts your insurance company offers? It’s easy to find out. Just call them up and ask, “Hey, what are all the possible discounts I could qualify for?” They’re happy to tell you.

Get married!

Insurance companies love married couples because married people are more likely to settle down and drive like responsible adults.

Also, married couples tend to have kids. Putting a kid in your car is a better predictor of good driving habits than having your insurance agent sitting in the back seat with a clipboard.

Domestic partnerships can also qualify if that’s your situation.

Important side note: I don’t recommend getting married for the insurance discounts. That’s not very romantic and could lead to financial penalties in the future far greater than any insurance discount!

Stop driving until you’re at least 25.

If you’re under 25, you’re a stupid driver and car insurance companies hate you. Whoa, there! Don’t get so angry! I’m not talking about you! I’m just saying, statistically speaking, you and all your friends suck at driving.

1/3 of all traffic related deaths each year are under 25-years-old. That is way out of proportion, and insurance companies are betting on you killing yourself or someone else with a car. And traffic deaths are freaking expensive (yes, and tragic)!

Luckily, the statistics start to even out at 25, so if you can make it that long, you’ll enjoy lower insurance rates from every insurance company.

Move to a rural area.

There are lots of reasons to live outside the city, and one pretty good one is that you’re less likely to smash your car into someone else’s.

Remember: Your insurance rate is based almost entirely on population statistics. And where there are fewer people driving around, there are fewer potential collisions. This translates to lower insurance rates for people living in rural areas.

Purchase your home.

This is another one of those things that’s a good indicator of someone becoming a boring, responsible adult, and insurance companies love boring, responsible adults because they make fantastic customers.

For the past 10 years or so, these numbers have been wildly inaccurate since all kinds of irresponsible people bought houses they couldn’t afford. But, in general, owning your home is a sign of financial success. Financial success traditionally requires a high degree of responsibility. And responsible people don’t crash their cars as often as irresponsible people.

The numbers (usually) don’t lie!

How to negotiate lower car insurance

7Follow the detailed script below to negotiate your car insurance fees down.

This is Tip #13 of of the Save $1,000 in 30 Days Challenge. (See past tips.)

Today’s tips is to negotiate lower car insurance. Most of us pick a rate once, then never go back again. But if you do, you can save hundreds of dollars each year.

car-insurance.jpg
First, check to see if you have the right amount of coverage. Nobody teaches us about this stuff, so when you bought car insurance, you may not have known which coverage options to choose.

Second, figure out what kind of coverage you currently have and how much you’re paying. Don’t be lazy — do this. If you don’t have your current info in front of you, how can you hope to save? Either call your car insurance company or use their website.
Third, it’s time to start shopping around. I prefer the phone because I can usually sweet-talk the rep into telling me about other deals that the websites don’t offer. Computers, however, seem to be immune to my charm.

I made it easy for you. Here are the phone numbers of the big insurers:

Geico: 1-800-861-8380

AAA: (866) 539-8033

Allstate: 866 704 9900

Progressive: 1-800-776-4737

State Farm: Sorry, despite getting good ratings in the comments below, THEY OFFER NO PHONE NUMBER. Anyway, you can get to their auto insurance site here.

21st Century Insurance: Don’t use this worthless insurance company. I used to use them, but they sent me multiple envelopes in the mail EVERY SINGLE WEEK until I finally canceled them. The rates were great, but the hassle wasn’t worth it.

Fourth, be an expert caller by asking these questions.

With each call, you should say, “AAA (or whoever) is offering to insure me for $XXX less” (silence). See what they do. (Note: Negotiating lower insurance using this technique is much harder to do with car insurance companies than banks, so don’t expect very much from this.)

How much would I save if I insure my car and house with you?

What about renewal discounts? How long have I been a member with you? What can you offer me as a discount for long-term membership?

Can I save money by pre-paying my entire year up front?

Let’s check my car. I know other firms offer discounts for features like anti-lock brakes. What about you?

What kind of low-mileage discounts do you offer?

If I enrolled in a defensive-driving course, what kind of discount would you offer? Oh, really? Which courses qualify?

What about discounts for my employer? (Tell them the specific name of your employer?)

Some insurance companies offer discounts for low-risk occupations (engineers). What kind of competitive rates do you offer?

Am I paying for roadside assistance? What other additional “benefits” am I paying for? (If you already pay for AAA, you don’t need roadside assistance through your car insurance. Also, check your credit card: They may offer roadside assistance (but call them and ask how much it really costs if you have to use it – some of their offers for “roadside assistance” really mean “we will assist you by calling someone for you and then charging you out the ass”).

Can you walk me through the deductible changes I could make to save money? (Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you more than 40%. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim. More details here.

AAA, Costco, credit cards, large employers, associations (AARP, teachers’ union): Many of these offer discounts on car insurance. Log onto their website and browse to “perks.”
Read more ways to save on car insurance.

10 Things You Should Know About Buying Auto Insurance

8How is Your Insurance Rate Determined?
Two factors determine what you pay for auto insurance. The first factor is underwriting and the second factor is rating. Insurance companies underwrite to assess the risk associated with an applicant, group the applicant with other similar risks and decide if the company will accept the application. Based on the results of the underwriting process, the rating assigns a price based on what the insurer believes it will cost to assume the financial responsibility for the applicant’s potential claim.

Each company adopts its own rating system, although there are general guidelines that all companies follow.
The single greatest influence on the rating process is claim frequency. This does not mean how many times you specifically have made an insurance claim, although that will have an additional effect. Claim frequency measures how often an insured event occurs within a group relative to the number of policies contained in that group. Persons sharing characteristics with high claims groups will be charged more for insurance coverage.

Specific Factors that Affect Your Rate
Your driving record – drivers with previous violations or accidents are considered to be higher risk
Your geographic territory – urban areas have more claims than rural areas
Your gender and age – males have more accidents; certain age groups have more claims
Your marital status – married people show lower rates of claims
Prior insurance coverage – if you have been cancelled for non-payment of premiums
Vehicle use – higher annual mileage results in higher exposure to risk
Make and model of your vehicle – luxury and sports cars average a higher number of claims
Ask Your Agent About Discounts
Discounts are awarded because the insurance company sees you as a “better risk.” Here are some discounts you should look for: multiple vehicles, driver education courses, good student, safety devices, anti-theft devices, low mileage, good driver/renewal, auto/home package and dividends. Not all states offer all discounts, so check with your agent to see if you qualify.
Tort System vs. No-Fault System
Each state must implement either a tort system or a no-fault system. The system your state has implemented will determine what kind of insurance is available to you. The three basic coverages sold under the tort system are bodily injury liability insurance, property damage liability insurance and uninsured motorists coverage. In a no-fault state, coverages will vary, but under a no-fault system your insurance company pays you directly for your losses as a result of injuries sustained in an accident, regardless of who is at fault. Check with your state insurance department for questions concerning tort or no-fault state systems.
Check Into Optional Coverage
The most commonly recognized coverages, in addition to the basic liability package, are collision and comprehensive coverages. Collision coverage pays for physical damage to your car as a result of your auto colliding with an object such as a tree or another car. This is relatively expensive coverage and is not required by law. Comprehensive coverage pays for damage to your auto from almost all other causes, including fire, severe weather, vandalism, floods and theft. This coverage will also cover broken glass and windshield damage. Comprehensive coverage is less expensive than collision, but is also optional. Other optional coverages include medical payments coverage, rental reimbursement coverage and towing and labor coverage.
Where to Go for More Information
Information is available to consumers from a number of unbiased sources. These sources include public libraries, state insurance departments, online resources, consumer groups and consumer publications. Every state insurance department has personnel available to answer questions regarding auto insurance coverage and many departments publish premium comparisons to make shopping around easier.
Shop Around Before You Buy
When shopping for auto insurance, premium quotations are a useful tool for comparison of different companies’ products. When asking for price quotations, it is crucial that you provide the same information to each agent or company. The agent will usually request the following information: description of your vehicle, its use, your driver’s license number, the number of drivers in your household, the coverages and limits you want.
Where to Shop
Check the newspaper and yellow pages of the telephone directory for companies and agents in your area. In addition, ask your neighbors, relatives and friends for recommendations on insurance companies and agents. In particular, ask them what kind of claim service they have received from the companies they recommend. Remember to shop around to get the best price and service.
For Your Protection
Once you have selected the insurance coverages you need and an insurance agent or company, there are steps you can take to make certain you get your money’s worth. Before signing an application for any insurance coverage, call you state insurance department and verify that the company and the agent are licensed to do business in your state. It is illegal for unlicensed insurers to sell insurance, and if you buy from an unlicensed insurer, you have no guarantee that the coverage you pay for will ever be honored.
Read Your Policy Carefully
You should be aware that an auto insurance policy is a legal contract. It is written so your rights and responsibilities, as well as those of the insurance company, are clearly stated. When you purchase auto insurance, you will receive a policy. You should read that policy and make certain you understand its contents. If you have questions about your insurance policy, contact your insurance agent for clarification. If you still have questions, turn to your state insurance department.

Top Tips For Cheaper, Better Car Insurance

9Do you have the right car insurance? Do you have enough coverage? While most people know whether they have liability, collision and/or comprehensive coverage, few people pay much attention to their insurance coverage until after they’ve been in an accident. Shopping for car insurance is a financial planning topic that is often overlooked, since most teenagers are added to mom and dad’s insurance policy when they first get behind the wheel, and then later shop for the least expensive policy when they have to the pay the bill on their own. In this article we’ll go over car insurance coverage and give you some tips to help you get the most for your money.

The Basic Types of Coverage
Protecting your assets and your health are two of the primary benefits of car insurance. Getting the proper coverage is the first step in the process. These are the basic types of coverage with which most people are familiar:

-Liability: This coverage pays for third-party personal injury and death-related claims, as well as any damage to another person’s property that occurs as a result of your automobile accident. Liability coverage is required in all but a few states.

-Collision: This coverage pays to repair your car after an accident. It is required if you have a loan against your vehicle because the car isn’t really yours – it belongs to the bank, which wants to avoid getting stuck with a wrecked car.

-Comprehensive: This coverage pays for damage incurred as a result of theft, vandalism, fire, water, etc. If you paid cash for your car or paid off your car loan, you may not need collision or comprehensive coverage, particularly if the blue book value of your car is less than $5,000.

(For additional reading, see Pros And Cons Of Leasing Vs Buying A Vehicle.)

Additional Coverage
In addition to the coverage listed above, other optional coverage types include the following:

-Full Tort/Limited Tort: You can reduce your insurance bill by a few dollars if you give up your right to sue in the event of an accident. However, giving up your rights is rarely a smart financial move.

-Medical Payments/Personal Injury Protection: Personal injury protection pays the cost of medical bills for the policyholder and passengers. If you have good health insurance coverage, this may not be necessary. (For additional reading, check out Fighting The High Costs Of Healthcare.)

-Uninsured/Underinsured Motorist Coverage: This option provides for medical and property damage coverage if you are involved in an accident with an uninsured or underinsured motorist.

-Towing: Towing coverage pays for a tow if your vehicle cannot be driven after an accident. If you are a member of an automobile service, or if your vehicle comes with roadside assistance provided by the manufacturer, this coverage is unnecessary.

-Glass Breakage: Some companies do not cover broken glass under their collision or comprehensive policies. In general, this coverage is not worth the long-term cost.

The 6 secrets of cheap car insurance quotes

70Sometimes car insurance premiums make sense. People living in places with more car crime or who have more expensive cars pay more, for example. But they’re far from the only thing insurers up your premium for.

Insurers have gone as far as working out surgeons normally have more accidents where they were to blame than any other profession and building society clerks the fewest. They know Virgos were worst for accidents last year, but Pisceans had more convictions.

That means they will up your premium based on age, sex, job, post code and where you park park as well as what you drive.

But car insurance providers don’t have to have to have it all their own way – we’ve found six ways to get cheaper car insurance that they’d really rather you didn’t know.

1. Use the right job title

If you describe yourself as a “chef” when filling in your car insurance application your average quote is £98 higher than if you write “kitchen staff” comparison site GoCompare.com found – and it’s not just cooks that have this problem.

“Music teachers” pay £86 more than “teachers”, “office managers” pay more than “office administrators”, and “construction workers” pay more than “builders” who – in turn – pay more than “bricklayers”.

Basically, if your job fits in more than one category, check car insurance quotes are for all of them before applying. For more on how your job affects your car insurance, check out GoCompare’s guide . And if you’re a full time parent or retired make absolutely sure you check that box and not “unemployed” – it could save you almost £300.

2. Add another more experienced driver to the policy
CatersA woman will have to grin and BEAR a fine – after attempting to use a giant TEDDY to beat traffic. The female driver, 19, placed a giant bear in the passenger seat of her car in the hope it would allow her to use a 2+ lane.Not all drivers get you a discount
It’s a crime to say someone who isn’t the main driver of a car is, but adding a secondary driver is perfectly legal – and more than that, it can save you money.

Get their permission first, then add an experienced driver with a clean driving license and decent no-claims history to your insurance.

3. Never leave it till the last minute

Searching around and switching car insurance three weeks before your renewal date, rather than on the day, saves you an average of £280, comparison site Comparethemarket found – with even bigger savings available for younger drivers.

Oh, and make absolutely sure you do compare and switch – figures from Moneysupermarket.com show almost 6 million drivers just accept their auto-renewal quote – costing them £113 a year.

4. Get some cash back

Comparison sites make money because when you switch products with them they get a referral fee from the insurer. But if you’re clever, you can get that money yourself.

Topcashback is offering up to £110.25 cashback when you switch through them. Once you’ve compared prices and found which deal is cheapest, head over to one of them and see if you can get an even better deal by switching through the cashback site.

5. Pay up front

Did you know that many insurers charge interest on your payments if you spread the cost over the year? Well, they do. an average of £62 more Moneysupermarket worked out. So if at all possible, pay up front.

6. Cut your extras and boost your excess

What’s included in your car insurance quote? Breakdown cover? Windscreen cover? Theft from the car? Driving abroad? Personal accident cover? A courtesy car? Every extra adds to the premium. More than that, a lot of them might already be covered by things like your travel insurance, AA membership, home insurance or even your bank account.

Double check you’re not double paying and then look to see if you really need these extras. Oh, and you need to check how much excess there is on your policy. This is how much you have to pay yourself when making a claim. The lower the excess the higher the car insurance, so work out how what you can afford to pay in the case of an accident and set your excess to that – even £50 can make a difference.

And of course….
These will all lower your quote, but to pay less make sure you’ve compared car insurance providers too.

5 Ways to Save Money on Car Insurance

6Most states require drivers to have some amount of auto insurance. But what if you’re trying to cut your expenses? You’ll be glad to know that it’s easy to reduce the cost of car insurance and still comply with the law.

In this episode you’ll learn 5 of the best ways to save money on auto insurance while keeping the coverage you need to stay safe and protect your finances..

Before we get into savings tips, it’s important to understand what’s covered by a basic auto insurance policy. Car insurance is actually a package of 6 different types of coverage that are each priced separately:

Collision coverage pays to repair your vehicle when you have an accident with another car—even if the crash is your fault.
Comprehensive coverage pays to repair your vehicle or reimburse loss that occurs due to something other than a collision, like fire, hail, flood, vandalism, or hitting an animal.
Property damage coverage pays for damage you cause to someone else’s car or property, such as a mailbox, fence, or building.
Bodily injury liability coverage pays for injuries that you cause to someone else.
Medical payments or personal injury protection (PIP) coverage pays for any injuries that you or the passengers of your vehicle have due to an accident. It can cover a variety of expenses, like medical treatment, lost wages, and funeral expenses.
Uninsured and underinsured motorist coverage pays when you’re in an accident with a driver who doesn’t have auto insurance. It also covers you in a hit-and-run situation or when an at-fault driver has insurance, but not enough to cover your loss.