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How to Save Money on Car Insurance

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A lot of variables go into figuring out the final cost of car insurance and it's not always easy to figure out how to get the best deal. That's why we've pulled together this quick step-by-step guide to saving money on car insurance. Here's the LOZO on how to save:

1) Select only the coverage you need so you don't pay for unnecessary extras
  • Check the minimum auto insurance requirements for your state and use that as a starting point. To find your state's minimum, check with your state insurance commissioner.
  • Answer some questions and get personalized coverage recommendations from
  • Consider coverage options with higher deductibles.  For example, raising your deductible from $200 to $500 for collision insurance can save you 10% to 30% on your premium, which is a potential savings of $50 to $225 per year.
  • Consider dropping some coverage to keep your costs low.

2) Shop around to compare rates which can vary significantly
  • Get some free comparative quotes from
  • Check ratings of insurance companies at JDPower, a company that specializes in providing unbiased assessments. They'll give you an inside view of where different insurance companies excel (or fall short).

3) Claim discounts to which you are entitled
  • Review commonly offered discounts.
  • Call your insurance company and let them know which qualifications you have, to see if they offer savings. Ask them to suggest other discounts for which you might qualify. For ideas, see our tip about different types of insurance discounts.

4) Drive safely! Avoiding accidents will keep your payments lower.

Still want more info? Visit our auto insurance section for more tips, resources and more.

Have any suggestions we missed? Add a comment below and we'll add in the best ideas to this article.

User Comments

posted by lolo3312 (Contributor | 110 Points) on 06-29-2010 04:18 PM
Also save money on your car loan
So I know this is about saving money on insurance, I'm all about saving money so I thought I'd also share how I saved money on my auto payments. I read a blog post on AOL's walletpop the other day about a company called MoneyAisle. It does the online research for the consumer and has banks bid on us online, where we receive the top 3 rates to choose from for auto refinancing. I went through the process and ended up saving $75 a month on my payment, which basically pays off my insurance. Right now the search process for the best rates is such a pain and dealers try to get the highest dollar amount, so this is a super awesome tool. I def suggest taking a stab at going through the process, you will be shocked when you see what you get as a rate compared to what you are currently paying or what you are given by other banks/dealers. Hope this also helps!
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