How to Pay Less for Car Insurance


When choosing car insurance there are some factors you need to consider. Actually, there are many companies offering different policies which could be hard to choose from. The thing is there are many pitfalls and issues to take into consideration and below there is a list of tips you need to know to choose the cheapest though optimal car insurance policy.

Look at the Terms Not Company

Companies waste millions of dollars for marketing campaign to make you believe that they offer the best terms with lowest prices and wide range of insurance occasions covered. And this usually works – people make contracts with branded companies mostly.

However, choosing the most branded company won’t let you make the best deal. You need to look at terms – not companies’ image. Usually companies have limited number of programs which is only assumed to be the best to their target audience which you may not be a part of. And most of these companies use different predictive models where marital status, job and age play role – so if you are not in the “green” zone of this company you will have to pay more.


Usually, you can get better offer from a local insurance company rather than big company that operates throughout the state just because local company usually pays more attention for local clients while company that operates throughout the country need to bring terms to the common standards.

Consider Discounts

All companies offer discounts on different terms. For example, if you have several cars and you insure those with one policy, or if you are stated to be responsible driver. This is the list of requirements you may need to meet to get a discount:

  • provide specific security measures against theft for your car;
  • accept insurance documents online;
  • insure your house, life in the same company.


You also can get a discount if your first payment covers several months of insurance fee. And it is very important to make payments on time – this shows your credibility and usually it allows you to get discount.

Consider Insurance Fees Before Buying a Car

It is one more way to decrease insurance cost. For some cars insurance fee is higher, for some it is higher. For example sports car, or car with high service costs will be expensive to ensure – just like the old car.

 Insurance Fees

To cut costs on insurance follow conditions below when choosing car:

  • lower than premium class;
  • widespread brand;
  • warranty is enforce;
  • high safety class.

If your car meets the requirements mentioned above it will make a positive effect on your insurance bills.

Make Sure You Pay for Optimal Coverage


For example, if you have a car of low market price it may be not necessary to include all insurance events to coverage plan. As the more coverage events are considered in contract the more you should pay monthly.

If your car is expensive, it is usually better to include collision and theft coverage. But you may not be fond of paying for comprehensive coverage. It is better to skip it as it includes damage from weather or exploitation which is expensive for expensive cars usually.

Choose Usage-Based Plan If You Do Not Drive Too Much

Usage-Based Plan

There is a standard approach each company has to usage of vehicle – it is included to the general predictive model which is used to calculate insurance payments. However, if you have a clean driver record and you do not use your car often – you can choose usage-based plan which means that insurance company will offer you lower insurance payment rate. However, it also means that insurance company can track vehicle usage which may be stated uncomfortable or inappropriate.


Generally saying choosing an optimal insurance plan is all about considering all options and choosing wisely what you want. You do not have to include all coverages  to the contract and you definitely have to earn a credit. And at last you need to choose right company that works with clients that share with you common features.


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