A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 18, 2021

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In any conversation with friends, family or neighbors, the subject of finances are bound to come up as people are seeking advice about how to save money on everything from mortgage payments to credit cards bills. It may surprise you to know that you can keep some extra cash in your pocket each month by taking advantage of the many ways to lower your rate on car insurance.

By typing your ZIP code in the FREE toolbox, you can also get quotes instantly for car insurance!

Some people try to cut corners when trying to save money. They have even been known to let car insurance payments lapse in favor of taking care of other bills. This dangerous practice will end up costing more in the long run.

One: Choose Your Vehicle Carefully

There are many factors used to determine your car insurance rate, such as your age, driving history and location. One thing you may not have thought about when applying for auto insurance is the type of vehicle you are insuring.

Based on a mountain of data collected by the Insurance Services Office, some cars are considered riskier to insure than others.

For example, people who drive flashy sports cars are viewed as more dangerous than those who purchase mini-vans. More information can be found at ISO.com.

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Two: Shop Around for Policies and Discounts

Comparison-shopping is perhaps one of the best ways to lower your car insurance rate. When it is time to renew your auto insurance policy, don’t just mindlessly sign on the dotted line. Look at your existing policy to determine if there is any feature that you don’t really need and have it removed.

Most car insurance companies offer special discounts and incentives to either obtain or maintain your business. Check with your insurance company to find out about anything that may have been missed when you signed your original policy. For example, see if they have some sort of loyal customer discount which kicks in after a certain amount of time. In addition, you might now be able to qualify for a senior citizen’s reduced rate.

Three: Pay One Company, Online, Upfront

Some companies allow you to save a few dollars by conducting your business electronically. Something as simple as paying your car insurance bills online each month can lower your rate by hundreds of dollars over the life of your policy.

Also, if you can afford to pay once or twice a year, rather than monthly, most providers will cut you a deal in order to receive their money up front.

You can also reduce your car insurance bill by consenting to letting one insurance company handle all your insurance policies. Discounts are available when you bundle all your vehicles on one quote or if you decide to combine different types of insurance needs in one policy such as life, home and automobile. This also serves to make payments easier as you will only have to deal with one insurance bill each month. It has the added benefit of saving tons of paper.

Four: Install Safety Features

Certain car features can also save you money on your auto insurance bill. Safety elements such as air bags, anti-lock brakes, and proper head restraints in your vehicle could possibly result in a lower car insurance rate. Other items that can reduce your rate include an alarm system, electronic stability controls, and automatic seatbelts.

There are also organizations you can join that give members a discount on their auto insurance rates. Check with groups like the auto club or American Association of Retired Persons to see if you qualify for membership. Resources can also be found through the Department of Transportation website.

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Remember This When Trying to Get a Lower Car Insurance Rate

The most important thing to remember is to keep your insurance policy and payments up to date and make sure you have the insurance card in your vehicle. Proving that you have insurance provides peace of mind for all involved. In addition, it is easier to get insurance if you already have it. Car insurance companies use your previous history as an indication of what type of customer and driver you are.

If you have not shopped around for car insurance rates because you like your current company, don’t worry. It is still possible to achieve a reduced car insurance bill and keep the same company. As you call around to different car insurance companies, if you receive a quote that is lower than your current policy, ask your insurance provider if they are willing to match that figure or even top it.

The bottom line is that there is no harm in trying. One of these methods is likely to work for you.

Find car insurance information specific to your needs by typing your ZIP code in the FREE tool!