Auto insurance helps you pay for expensive repairs after an accident or other mishap. But at the end of the day, an insurance business is still a business, which means it exists to make money.
As a result, your insurer might not rush to tell you all the ways you can cut insurance costs and get ahead financially.
Here are some insider tips on how to make insurance work better for you. Keep reading to start saving.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
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Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Shopping around can get you better rates
It might be tempting to settle for the first car insurance offer you find, but resist the urge to seal the deal before shopping around.
Shopping around, gathering quotes, and selecting the best policy is a great way to save money on car insurance. You might find that a seemingly sweet deal isn’t as good as you thought it was once you compare it to policy options from other providers.
You can fight back if an insurer denies your claim
If you submit a claim that your insurance provider denies, you don’t have to resign yourself to paying for everything out of pocket.
Instead, carefully review the denial. Then, get in touch with your provider directly to ask more questions about its decision, including what you can do to appeal and whether the company needs additional evidence to reevaluate its decision.
Rates might be higher simply because of where you live
Some areas of the country are more expensive places to live than others. Those higher expenses might include the average cost of insurance.
Even within the same city, some neighborhoods will likely have higher insurance costs than others.
While you can’t do much about the cost of living in your current area, consider local insurance rates as you strategize your next move. At the very least, you will want to account for the increased insurance costs in your future budget.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
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Gender can impact how much you pay for insurance
Women can end up paying slightly less in insurance over their lifetime, in part because many insurance companies consider teenage boys the highest-risk drivers to insure.
Unfortunately, there’s not much you can do to eliminate rate discrepancies between genders. But you might be able to save by shopping around for insurance.
For instance, according to one study, some insurers charge women in their 30s slightly more than they charge men of the same age. At other insurance companies, the opposite is true.
Comparing rates and gathering multiple quotes can help you get a better read on whether an insurance company might charge you more or less based on your gender.
An insurance guide might help you find lower rates
Instead of calling around to multiple companies and asking for quotes, find out if your state publishes a buyer’s guide.
Googling your state’s name plus “insurance buyer’s guide” might get you a state-approved, unbiased overview of insurance rates in your area, which can save you time and energy as you narrow down possible insurance providers.
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Your credit score might impact how much you pay
There are plenty of reasons to keep a sharp eye on your credit score, including the fact that a lower credit score might result in a higher insurance rate.
In many states, insurers use credit-based insurance scores when setting rates. In these places, keeping your credit score as high as possible and monitoring your score for fraud can maximize your chances of lowering your insurance rates.
Improving your credit score can cut your costs
If you managed to increase your previously poor credit score by paying bills on time and getting rid of debt, don’t hesitate to gather new quotes based on your improved credit.
You might find that it’s worth switching to a new provider who will reward your good credit.
Marital status can impact how much you pay for insurance
For better or worse, insurance companies tend to consider married couples safer drivers than single individuals.
Whether you are married or not, be aware of how your marital status will impact the quotes you get. And if you got married recently, make sure to ask for new quotes when you update your car insurance.
What you post on social media can hurt your insurance claim
Before you file an insurance claim, make sure the evidence you submit can’t be contradicted by any recent social media posts.
Plenty of insurance cases have been undone by public Facebook or Instagram posts. So, your best bet is to stay off social media until the claim is resolved.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
You might qualify for additional discounts
Consider reaching out to your insurance agent and asking if it offers discounts you aren’t aware of, such as price breaks for students who earn good grades.
You might never know about these discounts if you don’t ask.
You can save by letting an insurer monitor your driving
Some insurance companies offer app-based programs that monitor your driving and reward you based on good driving behavior. The app tracks where you drive, how fast you drive, and how you interact with other drivers.
As long as you are a safe driver, the app could work in your favor by saving you money and improving your financial situation. But beware that monitoring can backfire if you engage in bad driving behaviors.
Bottom line
Car insurance is a valuable tool for protecting yourself in the event of an accident, and it’s a legal necessity in nearly every state. Going without simply isn’t an option.
But don’t make the mistake of thinking you are automatically getting the most out of a policy because there is a good chance you are not.
Dig a little deeper into the ins and outs of car insurance to make sure you boost your bank account by saving as much money as possible.
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FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
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