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8 Ways to Get the Cheapest Car Insurance Rates Possible

Shop around for the right deal, and don't forget about the smaller insurers you may not be familiar with.

We just don't want to pay more for auto insurance than we have to, but finding lower prices isn't always easy.

There are plenty of insurance companies competing for your company, both big and small. Many have a dizzying array of coverage choices, making it difficult to compare premiums and determine who offers the best auto insurance prices.

Here are eight things you can do to guarantee you get enough coverage at a low cost.

1. Don’t assume any one company is the cheapest

Some businesses expend a lot of money on advertisements to persuade you that they have the best auto insurance prices. However, no one insurer is the cheapest for all. The cheapest auto insurance company for one passenger in one location could be the most expensive choice for a driver in another area.

Comparing auto insurance premiums is the only way to guarantee you're having the best deal.

A cost comparison by NerdWallet demonstrates why it's so vital to shop around. Here are some of the prices we find for a 40-year-old driver looking to purchase a maximum coverage package for a 2018 Toyota Camry LE. Many auto insurance providers offer a "safe driving" discount to our fictional driver because he or she has good credit and a clear driving record.

In Florida, State Farm will bill an average of $1,766 a year for a driver without a military affiliation, making it the cheapest rate in the state. Geico's annual premium is $239 more expensive.

In California, the reverse is true: Geico is the lowest, with an average cost of $1,458, whereas State Farm is $423 more expensive.

Progressive is the cheapest choice for New York drivers, costing $1,298 on average a year, but it is the most expensive in Florida, costing $3,015.

2. Don’t ignore local and regional insurers

More than half of the nation's car insurance market is controlled by only four companies: Allstate, Geico, Progressive, and State Farm. Smaller, localized insurers like Auto-Owners Insurance and Erie Insurance, on the other hand, often offer better consumer loyalty scores than the major names, and they can often have lower car insurance premiums.

3. Ask about discounts

Insurers offer concessions on auto insurance, which will result in lower premiums for drivers who:

Combining auto insurance with other plans, such as homeowners insurance, will save you money.
Through a single account, you can insure multiple vehicles.
Possess a spotless driving record.
They would pay their entire annual or six-month premium in one lump sum.
Accept to obtain documentation through the internet.
Invest in a vehicle with anti-theft or safety equipment.
Are affiliates of specific professional associations or associate organizations.

However, don't be fooled by a long list of potential discounts. Rates are compared a variety of insurance companies.

4. Work on your credit

Except in California, Hawaii, Michigan, and Massachusetts, where insurers are prohibited from using credit while determining prices, your credit score is a major element in the auto insurance quotes you get. Customers' credit scores have been linked to their likelihood of making lawsuits, according to insurance firms.

According to a NerdWallet report, having bad credit will raise auto insurance premiums by hundreds of dollars per year as opposed to having good credit. (A FICO score of 579 or lower is called “poor” credit in most cases, but insurers might have their own credit models with a different cutoff.)

Keeping your bills on time and that your mortgage will help you improve your reputation and get better insurance premiums. Review your credit score on a daily basis to keep track of your success.

5. Skip comprehensive and collision coverage for an older car

Collision compensation covers for damage to your vehicle caused by another vehicle or an obstacle like a barrier. Weather, animal collisions, earthquakes, arson, and graffiti are all included by comprehensive coverage. It also has coverage for auto theft. However, whether the vehicle is totaled or robbed, the potential reward for any provision is capped by the car's worth. It does not make sense to pay for these kinds of coverage if the vehicle is older and has a poor market value.

6. Raise your deductible

You can save money on extensive and crash coverage by choosing higher deductibles. (Liability insurance, which accounts for the harm you do someone in an accident, has no deductible.)

7. Consider usage-based or pay-per-mile insurance

Consider a usage-based insurance package like Allstate's Drivewise, Progressive's Snapshot, or State Farm's Drive Safe & Save if you're a safe driver who doesn't report many miles. By enrolling in these services, you give the insurer permission to watch your driving in exchange for future incentives depending on how much, where, and how far you drive.

8. Check insurance costs when buying a car

When buying a car, you probably think about things like fuel economy and maintenance prices, but you should also think about insurance premiums. According to a NerdWallet analysis of the cheapest cars to insure among top-selling vehicles, the Subaru Outback, Jeep Wrangler, and Honda CR-V have the lowest insurance rates.

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