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How to Save Money on Insurance Car

Ever since I was a kid I was brought up to be frugal and to save and budget money. * Disclaimer: I am not a financial planner.

Only buy what you need

When it comes to purchasing car insurance, you have a few options. You can buy full coverage and get everything, or you can choose to buy only the bare minimum of what you need. If you’re going for the latter option, that’s fine—but make sure not to cut corners where it matters most.

If there are any special circumstances in which your life or property could be at risk without proper insurance coverage (if someone else is driving the car and doesn't have a valid driver's license, or if there are passengers other than family members), then make sure to keep those things in mind when choosing an insurance provider.

Here are some examples of things that aren't necessarily worth paying extra for:

  • Car rental reimbursement: Most companies offer this as an included feature, so why pay extra?
  • Towing services: Even if your car breaks down far away from home, chances are good that there will be someone nearby who can help out if need be (and don't forget about AAA).

Reduce your mileage

  • Reduce your mileage.
  • Drive less.
  • Drive slower.
  • Drive more efficiently (older cars get better mileage than newer ones).
  • Drive more safely (the less you're driving, the less risks you're taking).
  • Drive in a carpool with friends or coworkers on long trips to save money on gas and wear and tear on your vehicle (you could even make it into an event!).

If none of these options sound like something you'd enjoy doing, consider signing up for ridesharing services like Uber Pool or Lyft Line; they have recently expanded coverage throughout most major cities across America so there's no excuse not to give them a try!

Find out if you could get a discount

  • Ask your insurance company if they offer discounts for safe drivers, paying your bill on time, or keeping a low mileage count.
  • Contact the HR department at your place of work to see if there are any employee-only plans available that might save you money on car insurance.
  • Check with your bank for any banking products or services that offer discounts for being a good customer (like making automatic payments).
  • Call up the credit card companies with which you have accounts and ask them if they can waive any fees in exchange for extra loyalty from their customers (this is known as “bundling”).
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Increase your excess

As with any insurance policy, the higher your excess (the amount you have to pay towards an accident before being compensated), the lower your premium will be. On the other hand, a low excess means that you'll have to pay out more money in the event of an accident.

However, there's a catch: if you choose a low excess then it's likely that you'll never claim on it because if an accident happens while paying such a small amount then it may not be worth claiming for. This means that despite having paid very little in premiums and having no claims history whatsoever, your premium could still increase significantly as soon as one small claim is made against you!

Don't pay for what you don't use

The first step to saving money on insurance is to make sure you're not paying for things you don't use. For example, if you live in California and hardly ever drive your car, then it makes sense for your car insurance company to know that and charge you accordingly. On the other hand, if you're a busy commuter who drives several times every day, then it also makes sense for them to know that and charge accordingly.

Insurance companies have likely spent a lot of time and energy researching what factors affect the riskiness of their customers' driving habits; they have data points on everything from how often they speed (or not) to how often they've had accidents (or not). The more accurately these companies can assess these risks—and thus price their policies accordingly—the better off both parties are: drivers get charged less than their actual risk level would justify; insurers make more money than they would otherwise by charging less than dealerships do without all this data at their disposal!

How to save money on insurance car

  • Don't buy more than you need
  • Don't pay for what you don't use
  • Reduce your excess
  • Find out if you could get a discount and only buy what you need.


If you're looking to save money on your car insurance, there are a few ways you can do it. You can reduce the amount of miles you drive each year, get the right coverage for your needs and find out if there are any discounts available to help keep costs down.


This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Shanon Sandquist

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