Save Money On Your Auto Insurance

Save Money Auto Insurance

When you’re buying a car and trying to determine how much you can afford, many forget to factor in the cost of auto insurance. If you’re not ditching your old car you still have to pay for insurance on the old one and the new one too. Then you factor in the unexpected auto repair expense and you can see why people can default on their car loan. If you want to get the lowest insurance premium possible, follow these steps.

Buy a used car

Car insurance rates on new cars are much higher than on used cars. Not only that, but when you finance a new car from the dealer they will require you to get full coverage insurance. This monthly payment can be so high it rivals your actual car payment. If you want a low cost insurance option, buy a used car and opt for only liability insurance.

Legal minimums

If the law requires you to be insured at all times, find out what the legal minimum is and only get that one. In California, for example, the minimum is $15,000 for a personal injury, $30,000 maximum personal injury per accident and $5,000 is the total coverage per accident for property damage.

Don’t be young

Younger people (under 25) pay a lot more in car insurance than older people do. Younger people should be added as additional drivers on a car, then moved to a primary driver once they are over 25. The highest insurance rates go to young drivers of sports cars who don’t have good driving records. So avoid that combination at all costs.

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Before I discussed how age and the type of vehicle affects your insurance rates. I also advised you to stay away from a new financed car, as you’ll be forced to get the most expensive full coverage insurance. Now I’m going to let you in on some other ways you can save money on your car insurance premiums.

Shop around

There are countless auto loan comparison sites around. Get quotes from as many companies as you can to find the best rates possible. Don’t be afraid of choosing a company you haven’t heard of before. Due some quick research on them and you may find out they are just as reliable as State Farm, All State and Farmers, they just don’t spend as much in advertising (which is probably why their rates are lower).


Auto insurance companies give discounts for a wide variety of reasons. There are discounts to members of the military, nurses and teachers to name a few. Discount are also given to good students and those with a good driving record. You can also obtain an additional discount if you get your homeowners and/or life insurance with the same company.


Opt to pay your insurance premiums in advance for 6 months. Many insurance companies will charge you a fee if you opt to make monthly payments. Even if the fee is just $4 per month this is an extra $48 per year you are throwing away. Be smart and establish a savings account so you’ll have enough money to cover your car insurance premium payment every six months.

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