Are You Wasting $820 a Year on Car Insurance? Here’s How to Stop It and Save Big for Free
- Author: Sadie Krajcik
- Posted: 2024-09-10
Let’s face it — car insurance is a necessary expense, but what if you realize that you're likely wasting nearly $820 a year?
Yep, that’s right! Many Americans are overpaying for their auto insurance without even realizing it.
The good news? There are simple, free ways to save money on your coverage.
Related: Auto Finance: Ways to Save while Dealing with Rising Car And Fuel Costs
Why Are You Overpaying?
It’s easy to stick with the same insurance company year after year, assuming you’re getting the best rate.
But the reality is, that insurance companies count on that complacency.
They often hike premiums gradually, and before you know it, you're paying hundreds more than you should be.
On average, drivers could save around $820 per year just by switching providers or taking advantage of free tools to find better deals.
Want to check if you're overpaying?
Try a free comparison tool like The Zebra or Gabi to instantly see if better rates are available in your area.
The Free Solutions to Slash Your Insurance Bill
If you’re fed up with high premiums, there are a few things you can do to lower your car insurance without sacrificing coverage:
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Compare, Compare, Compare!
One of the easiest ways to stop overpaying is to shop around. Don’t stick with the first quote you get.
Use free online comparison sites like Compare.com to see multiple offers from various insurers in minutes.
The competition between companies can work in your favor.
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Bundle Your Policies
Have homeowners or renters insurance? You might be able to bundle them with your car insurance for extra savings.
Many companies offer discounts if you have more than one policy with them.
Reach out to your provider or explore bundling options on Policygenius.
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Take Advantage of Discounts
You’d be surprised at how many discounts insurers offer, and many people don’t even know they qualify.
Some insurers provide discounts for things like being a safe driver, installing anti-theft devices, or even just having a good credit score.
Make sure to ask your provider about what discounts you’re eligible for or visit the National Association of Insurance Commissioners (NAIC) for more information.
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Consider Usage-Based Insurance
If you don’t drive often, why pay full-price premiums? With usage-based insurance, you only pay for the miles you drive.
Companies like Metromile offer pay-per-mile insurance, which can lead to huge savings if you’re a low-mileage driver.
Government Assistance Programs for Extra Relief
If you're still struggling with high insurance costs, there are some government-backed options to ease the financial burden.
Read: Can I Get Approved For An Auto Loan?
Programs like the California Low Cost Auto Insurance Program (CLCA) provide affordable car insurance to low-income drivers, ensuring everyone can have access to coverage without breaking the bank.
Additionally, the Federal Trade Commission offers resources for consumers to learn more about their insurance rights and how to avoid getting scammed.
Don’t Wait to Start Saving
The bottom line? There’s no reason to keep overpaying for car insurance.
With so many free resources at your fingertips, you can start saving hundreds right away.
Whether it's through comparison shopping, applying for discounts, or exploring government-backed programs, there’s a solution for everyone.
Take action today — your wallet will thank you!
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