5 ways to save on car insurance in 5 minutes or less

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5 ways to save on car insurance in 5 minutes or less

People tend to buy car insurance on the fly since everyone needs it to drive a new ride off the lot. Ideally, you shopped around for policies before hitting up the dealership. If you didn't, there's no reason to get stuck paying a high premium. Here are five ways to save on car insurance in five minutes or less.

1. Shop around now

Car insurance rates fluctuate. Even if you feel good about your policy, you could save by shopping around every one to three years. Having said that, you can cancel a car insurance policy at any time, so if your premium feels high, you can look for a better deal. (You can quickly compare car insurance quotes here.)

Just be sure to ask about early cancellation fees before formally changing providers. Some insurers charge penalties for canceling ahead of your policy's renewal date.

2. Bundle

Insurers reward you for repeat business, so tapping one company for multiple policies, if you haven't already done so, is a often good way to save. Bundling homeowners and auto insurance, specifically, can save you as much as 25%. We've got more on the pros and cons of bundling here.

3. Ask about other discounts

Call your agent to see if you qualify for the laundry list of discounts car insurers are known to tout. Common ones include:

  • Affiliation Discounts: Groups, organizations, trade associations and some employers offer discounts to members and employees when they buy a policy from a partnering insurer. Ask your agent if your insurance company has any such partnerships.
  • Good Driver Discounts: If you've gone long enough without damaging your driving record, some insurers offer a rate decrease.
  • Low-Mileage Discounts: Less time on the road means lower odds of an accident, so if you drive below a certain number of miles a year, your insurer could lower your policy's price tag.
  • Safe Car Discounts: Newer cars, or cars with certain safety features, like emergency brake assistance, adaptive cruise control and collision avoidance systems, are usually cheaper to insure.

For a full list of car insurance discounts, features and riders, head here.

4. Pay your premiums in bulk

Insurers are known to offer anywhere from a 3% to 10% discount if you can swing paying your annual or six-month premiums up-front. Also a potential money-saver? Opting for paperless billing.

5. Raise your deductible

Your deductible is the amount of money you're expected to pay out of pocket before coverage kicks in. Opting for a higher deductible lowers monthly premium costs. You'll need to shell out more money in the event of an accident, though, so make sure you can cover the new dollar amount.

Remember, car insurance policies can get, well, kind of complicated. When shopping around for coverage, you'll want to compare apples to apples. Fortunately, we've got a full guide on how to compare auto insurance quotes here.

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