Cheap Car Insurance

With car insurance, you get what you pay for.

How can I save on car insurance?


We all know those insurance commercials: they all advertise their "fantastic" rates and somehow they’re all the cheapest. But when you read between the lines, you begin to see that cheap isn’t always the way to go with protecting your car. Still, here at The Zebra, we believe there are always ways to save on insurance without having to sacrifice quality or service. So, if you want good coverage and a cheap rate, look no further than here.


In this article, we'll discuss:
  1. How can I get cheaper car insurance?
  2. Why is my rate so high?
  3. What are some ways I can get discounts on my insurance?
  4. Is cheap always the way to go?
  5. What's the cheapest company for me?




Where to buy


If you're in the market to buy car insurance, your best place to look is online. Because there are many factors that determine your rate, you shouldn't get too attached to a company as the amount of variance is considerable. Your best bet is to shop multiple companies in order to see which company offers the best rate. Only with us can you shop hundreds of different companies at once using your specific information to get the best rate.





Your rate is very specific to you


There is a myriad of factors that determine your rate including your location, the specifics of you personally, your insurance history, your driving history, and what you drive. So, if you have lots of at-fault accidents or claims, it's going to negatively affect your rate. Furthermore, if your credit history is poor or your zipcode has (which usually a higher amounts of uninsured motorists, you might not be able to find cheap auto insurance. So, that's why we're here. How can you get really cheap car insurance?

For more information what exactly goes into your rates, see here.





How you can save


We get it. You can’t just improve your credit score over night because it's having a hard time finding cheap auto insurance. Just like there are times when you don't want to sacrifice customer service and claims satisfaction just to save a few bucks. Let’s break down the most common discounts and how much you can save.


Multi-policy

This discount refers to having two types of insurance policies under one insurer. Common policies are home/auto or renters/auto. Between a home/auto discount and a renters/auto discount, the discount is greater for the former - with homeowners saving an average of $110 per year while a renter typically saves an average of $72 on their car insurance rate. The discount affects both your policies, but the amount above refers to your auto insurance only.


Average Savings for Bundlings

Renter Homeowner
$73 $142


Consider telematics

Telematics, or usage-based insurance, is a growing trend in the insurance industry. Basically, it uses an in-car device to track your driving habits. And, based on how you drive, will determine an insurance premium that is more representative of the kind of risk you actually are to your insurer. Currently, your age, credit history, and location are all big rating factors in most states for your premium that aren’t directly tied to how you drive. Here are some insurers and corresponding potential discounts for telematics.


Company Estimated Savings
Progressive's SnapShot Average of $130
Allstate's Drivewise Average of 10-25%
State Farm's Drive Safe & Save Up to 15%
Esurance's DriveSense Varies
Nationwide's SmartRide Up to 40%
Liberty Mutual's RightTrack Average of 5-30%

Consider, however, that not every state participates in these programs. Check with your company to see if you are eligible.



Be smart with your coverage

By this, we are referring to the sad truth that your 03 Pontiac isn't growing in value over time. So, if you have an older vehicle, it might not require the same coverage that a newer vehicle would - aka comprehensive and collision insurance. Here are some easy steps to consider when thinking about your coverage options.

  • Using Kelley Blue Book as well as the NADA (National Automobile Dealers Association), determine the market value of your vehicle.
  • Using the information from step 1, look at the difference in price between having full coverage (comprehensive and collision) and having only liability. If the amount of money you save in premium from losing full coverage is not enough to cover or replace your vehicle (which you determined from step 1), keep these coverages.
  • If you determine that you still need comprehensive and collision coverage, consider raising your deductible. By raising your deductible, you lower your premium as you assume a greater amount of financial responsibility if your vehicle is totaled.

Note: Even if you remove these optional coverages, you would still need to keep your bodily injury and property damage coverage, and we recommend keeping your uninsured/underinsured coverage as well.



Defensive Driver Discount

This discount entails taking an actual defensive driving course and then presenting your insurance company with proof (sometimes a receipt or transcript) of it. The logic behind this discount is clear: a safer driver makes you a cheaper client because you’re less likely to have a claim. Before you take the course, however, make sure your insurance company offers the discount first. Not every insurance company will honor the discount and some have specific guidelines for the courses you are allowed to take.



Equipment Discount

If your car comes with anti-theft devices or if you have services like LoJack, your insurance company usually provides a discount. The discounts tend to be smaller than a multi-policy or defensive driver discount, but can still help with making premium payments. On average, using a disabling anti-theft device can save you an average of $11 per year.


Average Savings from Safety Devices

Safety/Anti-Theft Device Avg Annual Premium Discount
None $1,323
Passive Disabling Device $1,312 $10
Tracking Device $1,314 $9
Audible Alarm $1,317 $6
Electronic Stability Control $1,318 $5


Good Driver Discount

Naturally, this discount is offered to you if you have a clean driving record, meaning no accidents or citations. This is typically a 10% discount and a lot of times it is automatically added to your policy when your Motor Vehicle Report or CLUE report is pulled at the inception of your auto policy. Still, if you are sure you have a clean driving record (meaning no at-fault accidents or violations) and are not receiving any discount, speak with your insurance company and ask if they offer a discount for good drivers. The added bonus of this discount is how costly any type of violations or accident can be. So, by keeping a clean driving record, you get the discount as well as avoid these costly penalties, featured below.


Average Increase in Annual Premium in 2016

Accident/Violation 6 Month Premium Increase
None
Speeding 11 - 15 MPH Over Limit $141
Speeding 16 - 20 MPH Over Limit $153
Speeding 21 - 25 MPH Over Limit $165
At-Fault Accident $306
Reckless Driving $499
Racing $523
DUI $529


Military Discount

Many companies offer discounts for active or former military members and their families. The amount and qualifications differ per company but you should ask if your current company has this discount.


Multi-car discount

Like a multi-policy discount, a multi-car discount refers to having more than one car with a single insurance company. Typically, the discount is automatically added either at the policy inception (if two cars were originally added) or when you add the second vehicle to the policy.


Preferred Payment Discount

This discount refers to the manner in which you make your insurance payments and has tiers, typically. For example, if you pay your entire premium up front, you are often given a discount which is usually the highest preferred payment discount. On average, a paid in full discount can save $62 per year on your auto policy. Moreover, if you set up automatic payments from a bank account, you can often receive an “EFT discount.” Here, EFT refers to electronic funds transfer and can save about $28 annually. If you are able to pay upfront or through automatic payments, this is a discount worth considering.


Average Rates by Electronic Funds Transfer

Yes No Savings
$1,295 $1,322 $27

Average Rates by Payment Plans

Paid In Full Installments Savings
$1,261 $1,323 $61

Profession Discount

This discount goes by many names but the idea is the same. Some insurance companies will offer a discount based on your occupation. Statistically, some occupations like teachers, physicians, or police officers are less likely to file a claim and thus pose less of a risk. Because of this, some insurance companies return the savings back to you. Usually, they will require you to submit some type of proof of your profession—a photocopy of your degree is common.


If you'd like more information on profession-based discounts, see our other articles here.



Good Student Discount

If you have a young driver, you understand how expensive they can be to your insurance policy. Given the number of claims they cause, teenagers look like considerable risks for insurance companies and they charge accordingly for them. If your son or daughter has the grades, typically above a 3.0 GPA, speak with your insurance company about a good student discount. Normally, they’ll ask for a transcript every policy period (6-12 months) as proof.


Average Savings for Good Student and Good Driver Discount

Average Teen Average Male Teen Average Female Teen
$283 $360 $207




Sometimes, cheap isn't the best way to go


You’ve heard the phrase “you get what you pay for.” Well, it’s the same for car insurance. Sometimes an auto insurance company is cheap simply because they offer very little in terms of customer support or because they cut corners in their claims process—leaving you to pick up the pieces. This is something to consider if an easy and reliable claims process or customer satisfaction is important to you when looking for cheap auto insurance options.


At the end of the day, even with all the discounts, your car insurance rate can still be very expensive. You could be following all our advice and still be spending too much money on auto insurance. Because of this, we recommend you shop for car insurance every 6 months to ensure you're getting the best possible rate.





What about by company?


Because every person is different, it's hard to give specific advice on which insurer can actually give you the cheapest rate. Your best bet in terms of finding a company that matches you exactly is to shop around frequently. Only with The Zebra can you search hundreds of company at once in order to find the best rate for you.




Compare over 200 insurance companies at once!




Still, we do have some specific profiles with a company-by-company analysis you can look at. See which company is the cheapest below.






Recent Questions:

Cheap Car Insurance

What’s the cheapest company for a 60 year old man with a DUI

Mar 06, 2018

I’m looking for a cheap company for my recent DUI conviction as well as a company that I can bundle ...

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My insurance is almost $200 a month for basic full coverage on a 2017 Kia Forte. I am 39, 1 ...

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Due to a large number of tickets and a few accidents I’m having a difficult time finding car insurance that ...

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