Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Apr 23, 2019

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Auto insurance companies love to advertise how you can save up to $500 or more by switching providers but can you really save money on auto insurance? Will switching providers seriously save money? You can only switch so money times and somebody has to have the cheapest rates.

Use our FREE quote tool to compare auto insurance rates today!

Saving money on auto insurance is not that difficult but you do have to understand how auto insurance works and what questions to ask any new or potential provider.

The formula for calculating rates is different from one provider to another and even good drivers can see wide differences in premiums across comparable companies.

Before switching auto insurance companies (or choosing a provider) try to take a few moments and use these money saving tips to find the best auto insurance rates.

Learn How Auto Insurance Works

This may sound easy enough but do you know the difference between comprehensive and collision coverage? What exactly does liability insurance cover? Will auto insurance pay for all your damages? How much do you have to pay out of pocket in a car accident?

Sadly, many of these questions (and more) are only answered when it comes time to file a claim. The cost of auto insurance can sometimes be up to 5% or more of a household budget so this is a pretty big expense, and an expense you have associated expectations with.

If your TV breaks or your remote control suddenly starts switching channels all by itself then its’ natural to default a win to the tech gods and simply find a replacement.

However, with auto insurance, there is often a false expectation of full coverage in the event of a car accident when the policyholder has never read the terms of the policy they purchased in the first place.

You need to know how auto insurance works. Not only will this allow you to purchase the most sufficient coverage for your unique needs but also provide the foundation where you can compare auto insurance quotes based on equal coverage.

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Auto Insurance Discounts

Most good drivers pay pretty high base rates for auto insurance, believe it or not, however the way they bring premiums down to affordable rates is the application of auto insurance discounts.

This is one of the reasons why some high-risk drivers suddenly see premiums drastically increase – its not necessarily such a high increase in the cost of auto insurance but the subtraction of discounts they are no longer eligible for.

The upside with auto insurance discounts is there are plenty of them and you are not limited to using just one. Most drivers mix and match discounts to achieve savings up to 30% or more on standard base rates.

The downfall is that not all discounts are offered by every provider and not every agent discloses all the eligible discounts at the time of application. You need to play the role of a smart consumer and learn about all the available auto insurance discounts around.

Once you have a list then always ask any potential auto insurance company whether or not you qualify for such discounts.

Remember that all discounts may not be included on a quote form or may not even be part of the standard application questionnaire so make a list, check it twice and make sure you ask nice.

Compare Auto Insurance Companies

A large part of the value of auto insurance is the provider backing you in the event of a claim. Many drivers often pay higher than average rates purely due to the feeling of security being insured with one company over another.

You don’t necessarily have to pay higher auto insurance rates for coverage through your choice provider but you do need to narrow down potential auto insurance companies to a list you can trust.

With over 150 licensed auto insurance companies in many states, there are numerous trustworthy providers but this is a very personal choice, so you need to read reviews and compare auto insurance companies.

Check with your State Department of Insurance, the Better Business Bureau and friends and family for recommendations.

Auto insurance is mandatory and saving money is optional. No matter how good a driver you are the amount of many you will save on auto insurance is often directly related to the amount of time and effort put in learning about and comparing auto insurance quotes.

Since auto insurance is something you will have for a very long time it only makes sense to start your education today and save a few bucks along the way.

Use our FREE quote tool to compare auto insurance rates today!

Related posts:

  1. How much can I save with a Good Driver Discount?
  2. How do I switch car insurance companies?