6 ways to save money on car insurance

Everyone’s got to have car insurance, but it doesn’t always have to be a drain on your wallet. You’re likely familiar with the usual suspects when it comes to saving on auto insurance: maintaining a clean driving record and being mindful of your claims history. However, Brigade Insurance has delved deep into the abyss of potential risk factors to uncover a trove of lesser-known gems that could put a bit more cash in your monthly budget.

1. If you can’t Beat Them, Join Them

Insurance commissions on Auto and Home range in the 9%-15% range.  If you sell yourself your own insurance (like we do), you are essentially getting a 9%-15% discount.  The best way to do this is to join a company where you can sell part time and keep your day job that pays the bills.  The insurance agent side-hustle is one of the best kept secrets as it is a recurring revenue business model.  We highly suggest the company EIA which is built for the insurance agent side hustle.

2. Boost Your Credit Score

Many folks aren’t thrilled about insurance companies factoring in their credit score when determining car insurance premiums. It’s worth noting that three states—California, Hawaii, and Massachusetts—don’t consider credit scores in this context. But for the rest of us, we have to play the cards we’re dealt.

The silver lining is that each time you ascend a credit tier (e.g., from Average to Good), you could pocket hundreds of dollars in annual savings. If you’ve gone from rock-bottom (Poor) to soaring heights (Exceptional), you could be looking at a yearly savings of $1,408.

3. Bundle Up

Securing both auto and home insurance can yield substantial savings, and you don’t need to own a house to cash in. On average, bundling these coverages nets you an 8% discount on car insurance, regardless of whether you’re a homeowner, condo dweller, or renter. Homeowners enjoy the most significant advantage, with about 10% off their car insurance. Condo owners (8%) and renters (5%) can also reap the rewards.

4. Stay Covered for the Long Haul

The math on this one is straightforward: The longer you remain insured, the lower your rates will become. You’ll start seeing savings of roughly 8% after just six months of coverage.

Pro tip: After your first six months, and then again after reaching the 1-, 3-, and 5-year marks of continuous coverage, consider shopping around for insurance. Your stellar track record can lead to lower rates. And remember, don’t let your coverage lapse even for a day – insurance companies frown upon gaps in coverage.

5. Pay Up Front

If you can foot the entire bill for your coverage term upfront, it can pay dividends down the road. Opting for payment in full, as opposed to installments, could slash your costs by a whopping 12%. Think of it as saving $9 each month. Conducting your business digitally can sweeten the deal even further.

6. Track Your Driving with Telematics

If you’re open to using an app or a small device that plugs into your dashboard to monitor your driving habits, it could translate into significant savings. This technology, known as telematics, tracks metrics like speed, mileage, and total driving time, which factor into the formula determining your insurance premium.

Nearly every state (with the exceptions of California, Hawaii, and Wyoming) offers some benefits for adopting telematics. In certain states, embracing this usage-based insurance and practicing safe driving can shave over 3% off your premiums.

Additional Ways to Trim Your Car Insurance Costs

Beyond these six strategies that apply broadly, here are a few more avenues to explore, tailored to specific circumstances:

• If you have a teenage driver, you’re likely aware of the costs. But keep in touch with your insurance provider, as premiums decrease with each passing year as your teen ages.
• Marriage has numerous benefits, including a drop in car insurance premiums. On average, annual car insurance costs dip by approximately 6% when you tie the knot.
• Love your current ride? Holding onto it and resisting the allure of the latest models can pay off. Nationwide, auto insurance typically decreases by about 3.4% each year your car ages.  Plus, with access to our amazing extended warranty, you can benefit from having an older vehicle without all the potential downsides of breakdowns that you have to pay for.
• Surprisingly, individuals with steady employment tend to pay less for car insurance compared to the unemployed. The difference may only amount to about 1%, but it exists. For those seeking even more savings, military service or holding an advanced degree can also lead to lower insurance rates.
• Don’t rush into buying a new vehicle without considering your insurance rates. In general, trucks often come with cheaper insurance premiums than cars.