We all know factors such as your age and accident history can greatly affect your car insurance rate.
But did you know parking your car in a garage at night could get you a discount?
Or that by mentioning your alma mater, your insurance agent might cut you a deal?
Here’s how to save money on car insurance.
1. Pay Only For the Miles You Drive
Don’t drive much? Car insurance companies don’t really care if you only putz to the grocery store once a week. You’ll still receive a hefty bill.
But nowadays, pay-per-mile car insurance policies are becoming more readily available.
If you’re not sure where to start in your search — or if pay-per-mile insurance would even pay off — you can get a free quote from a number of sites, including MetroMile.
With MetroMile, you pay a base rate, then a few cents per mile. Rates will vary from driver to driver, but here’s an example: Pay a base of $30 a month, plus 3.2 cents per mile. So say you drive 500 miles; that’s $46 a month for car insurance.
That still includes all the normal stuff insurance covers, including bodily injury, property damage, uninsured and underinsured motorist coverage, collision… (read the rest here).
Right now, MetroMile is available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington. If you don’t live in one of these states, don’t fret. You can add your name to the waitlist.
2. Mention Your Low-Risk Occupation
Oddly enough, mentioning your occupation might save you a bundle on premiums.
That’s because insurance companies follow trends, such as what professions are the least likely to have an accident.
These are considered “high-risk” occupations, according to DMV.org, a site not formally associated with any state agency but that aims to help folks navigate the DMV system:
- Doctors
- Lawyers
- Real estate brokers
- Business owners and executives
- Architects
- Salespeople
On the other hand, these are considered “low-risk” occupations:
- Scientists
- Nurses and first responders
- Pilots
- Accountants
- Teachers
- Artists
“Because these professions are considered stable and require a very detail-oriented personality type, they are associated with lower accident rates,” DMV.org writes.
So if your insurance agent doesn’t ask about your job, be sure to let him or her know. It could save you a bit!
3. Etch Your VIN
Ever heard of etching your car’s VIN into each window of your car?
This doesn’t mean breaking out your pocket knife and scraping it across your windows. It means going to a dealership (or opting for a cheaper option, a kit from Amazon) and having your car’s VIN permanently engraved into its windshield and windows.
According to Allstate and other insurance companies, this will deter thieves, because they’ll no longer be able to profit from your car’s windows. It also makes the car more difficult to dispose of when all’s said and done.
But before you ask your dealership to perform this service, check with your insurance agency to make sure you can actually get a discount — and that the cost will be worth it.
AARP reports some dealerships will sneak this service in for a couple hundred dollars, leaving consumers dazed and confused — and without a discount.
4. Do a Quick Price Comparison
You’re probably overpaying for car insurance. And how would you know, really?
Have you shopped around lately? Probably not. It’s a bit of a pain.
Fortunately, a free service called Gabi will compare rates from a number of auto-insurers; you don’t even have to fill out any forms.
Once you link your insurance account to Gabi, it will:
- Scan your existing insurance plan
- Analyze what coverage you have
- Compare the major insurers’ rates for that same coverage
- Help you switch on the spot if it finds you a better rate
Gabi says it finds an average savings of over $460 per year for more than 60% of its customers.
It’s a true apples-to-apples comparison at the same coverage levels and deductibles you currently have. Once you’ve signed up, you never have to shop again. Gabi’s software has your policy on file and keeps monitoring for savings as your variables change.
Note that Gabi is currently available in California, Illinois, New Jersey, Oregon, Pennsylvania and Washington. The company plans to expand into Florida, New York and Texas next.
5. Take a Driving Course
OK, this isn’t a fun one, but it could knock some money off your insurance rate.
Before you sign up, be sure to consult with your insurance provider to ensure a driving course will nab you a discount. (You don’t want to pay for a class — and sit all the way through it — for nothing.) Also ask if your insurance company provides class discounts; some do.
Typically, younger drivers, those under 21, can take a driver training course. Older drivers, those over 50, can take a defensive driving course.
DMV.org has more info on these courses.
6. Study Harder and Get a Good Grade Discount
It’s no secret younger drivers will pay higher premiums.
However, these younger drives are eligible for a “good grade” discount. Why? Statistics have shown those who get good grades are less likely to get into a car accident, according to DMV.org.
Most car insurance companies have these requirements:
- Drivers must be younger than 25
- Be enrolled full time at a high school or college
- Maintain a B average (3.0 grade average)
Many agencies will need to see a report card or a signed letter from the school’s administrator.
You can read more on student discounts here.
7. Move to Maine
Yes, the state you live in can greatly affect your car insurance premiums.
Maine has the honor of having the lowest average automobile insurance premiums in the country, according to Insure. Rates clock in at $864 a year, less than half the cost of states like Florida, Rhode Island, Connecticut and Louisiana..
And just for the record, folks in Michigan hold the title of most expensive insurance, with the average person paying $2,394 a year.
So we’re not telling you to move… but Maine is pretty affordable compared to most states.
8. Let ’Em Track You
This won’t be for everyone, but if you don’t mind your insurance agency tracking your driving behavior, usage-based insurance could help you save.
Take, for example, Progressive’s Snapshot program. Through an app or plug-in device, it monitors what time of day you drive, sudden changes in acceleration and braking and how much you drive. Based on that — if you’re a sound driver — you could wind up paying less.
Nationwide, Esurance and Safeco all have similar programs, too.
9. Don’t Forget to Haggle
Online comparison tools are a great way to start working on a quote, but you should always follow up with a phone call, because it never hurts to try haggling with a live agent.
Don’t be afraid to ask them if they can do better than their first offer, and don’t forget to leverage the other online quotes you’ve pulled.
If another company has a feature or a price you like better, see if they’ll beat it or at least match it.
(Hint: If you’re already insured, try doing this one with your current company. Tell them you’re currently shopping around and were wondering if they could do better than your current rate.)
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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