Car insurance is a necessity, and an expensive one at that. But if you shop smart, take your time, do your research and don’t grab the first offer that comes your way then you can make some huge savings and get more affordable quotes.
In this guide we’ll look at ways that you can get cheap car insurance, answering commonly asked questions regarding affordable insurance and realistic rates.
Why is my Car Insurance so High?
There are many factors that contribute to excessive car insurance quotes. Some of these can’t be changed easily, but there are others that you can change:
- Your Policy: If you took the first quote you saw and chose a host of extras, then your car insurance will be high. The more you want and the less you compare, the more you will pay. It is the same story with health insurance and life insurance and is why you need to carefully calculate what you need and what you can afford, before comparing quotes with different providers.
- Your Car: A safe and sensible vehicle will lead to cheaper car insurance quotes than a souped-up speed monster.
- Your Demographic: Your age, sex, relationship status and even your profession will all dictate how good of a deal you get. Insurance companies look at the likelihood of you causing an accident based on your demographic.
- Your Location: As with your demographic, your location will dictate whether you get a good or bad deal. You’re a slave to the statistics.
- Your History: Many aspects of your history are taken into account. First and foremost they will look at your claim history, as well as driving offenses and speeding tickets. But they will also look at your work history to see how far you drive, how much you drive, etc., and even your credit history.
How Much is Car Insurance Per Month?
The price you pay will depend on a number of factors, which we have already discussed. As an average, not accounting for users with history of speeding tickets, accidents and unsafe driving, you can expect to pay the following for full coverage:
- 18 to 21: $3,300
- 22 to 25: $2,200
- 26 to 35: $1,600
- 36 to 45: $1,500
- 46 to 55: $1,400
- 56 to 65: $1,400
- 66 to 75: $1,600
- 76 to 85: $1,900
Cheapest State for Car Insurance
Your town or city can play a big role in the amount of money that you pay every month, but typically Maine, New Hampshire, Wisconsin, Virginia, Ohio, North Carolina, Iowa and Idaho have some of the cheapest rates, while Michigan and West Virginia have some of the highest in the country.
How to Lower Car Insurance
There are a number of things that you can do to reduce your car insurance. It’s all about playing the game, about changing the things that can be changed in your favor and doing as much as you can to downplay the things that can not.
Follow the below steps:
- Get a safer car or make changes to your car that will make it less of a risk in the eyes of an insurer.
- Don’t opt for all the bells and whistles on your policy.
- Try to bundle your car insurance with home insurance.
- See if you qualify for any discounts based on your profession (student, military) and your driving history (no offenses, no tickets, no crashes).
- Always compare multiple companies and policies.
- Be willing to increase your deductible.
Who Has the Cheapest Car Insurance?
The cheapest car insurance isn’t always the best, and it’s highly unlikely that it will be the best for you. Also, the price you see advertised might not be the price that you pay because there are so many factors involved with creating a single car insurance policy.
That’s why you should never assume a car insurance company is offering you the best price just because they are considered to be one of the cheapest.
Some of the companies that regularly come out on top with regards to price include giants of the industry like GEICO and State Farm, and smaller companies like Erie. In fact, a few ratings systems have placed Erie at the top of their list for consistently cheap car insurance, but again, just because they have the cheapest rates for others or even as an average, doesn’t mean they will have the cheapest rates for you.
Can you Get Car Insurance Online?
There are a number of companies that allow you to purchase car insurance online and in most cases you can save yourself heaps of time and money by using this method.
Take a look at our guide to the Best Car Insurance Companies to see which ones offer this and which ones have the best prices. You can then go through the entire process on your computer or device, from quote to purchase.
How to Get Very Cheap Car Insurance with no Deposit
If you are a good customer, which is to say that you have a good record, then you might qualify for no deposit car insurance and you should also be able to get it fairly cheap. However, this is not something you can jump into as a young, inexperienced driver.
Bide your time, do your research and use your good record to your advantage.
Cheapest Cars to Insure
Small, safe, new cars tend to be very cheap to ensure. But there is much more to the equation than that.
An insurance company will look at a list of 23 common car parts and calculate the price of replacing these parts. The value, performance and security are also considered, with the more expensive, higher-performance and older models (older cars typically have poorer safety ratings) driving up the price.
One of the cheapest cars to insure in 2018 is thought to be the Nissan Micra. It is reliable (the range has been going since the ‘80s) it’s cheap, it’s study and it’s safe. The following cars also fit into the same mold and might be cheap to insure:
- Smart Car
- Ford Ka
- VW Polo
- Ford Fiesta
- SEAT Ibiza
- Vauxhall Corsa
Is Car Insurance Tax Deductible?
If you are self-employed or run a business and you need your car for work, then you might be able to claim some of your car insurance. The amount you can claim will depend on how much it is used and how essential it is.
However, if you only use it for personal reasons then you will not be able to claim any deductions.