Car Insurance - How can you lower your premiums?

 Car Insurance - How can you lower your premiums?

Automobile insurance is very expensive, and our research found that many people end up paying substantially more than they should for their car insurance. You can lower your premiums by comparing your options and saving money.

Car Insurance - How can you lower your premiums?

When you need to buy a new car, the only thing on your mind might be the price of the vehicle itself. But there's also going to be an associated cost with vehicle ownership- that cost is typically in the form of auto-insurance. While most of us understand auto insurance's purpose, not everyone seems to know why it costs so much or how they can save some money while still being protected from misfortune. This article will help you understand the basics behind auto insurance and how you can make sure you're getting the best possible deal.

The Basics of Auto Insurance

Although all types of car insurance companies are different, they work basically the same way. When you buy a policy from a company, they divide it into different sections that cover various things depending on the type of policy. But in general, there are two categories that can be seen as the "main parts" of any policy. The first is liability insurance and the second is collision and comprehensive coverage. This article will explore both kinds of coverage to explain how they work and how what we can do to reduce premiums by understanding them better.

Collision and Comprehensive Coverage

The first insurance types you'll get when you buy a policy are usually called "collision" and "comprehensive." In essence, these cover different parts of your car, but they pay expenses in the event that your car is involved in an accident. What these two covers do is pay the expenses for repairs to your car, which can include repairs for damage done to the entire vehicle and anything broken inside of it, or actual repair of the vehicle itself. The amount you get paid depends on two main factors: how much you insured against and how much it would have cost to repair.

The main way to lower your premiums on these sections is to either reduce the amount of coverage or increase the deductible amount. The deductible is a payment you make in order to receive any insurance money, and it increases with every claim you make. By increasing your deductible, you can pay for more of the costs out-of-pocket, but this means that in the event of an accident, you have to pay for a greater percentage out-of-pocket.

Liability Coverage

Liability insurance is what helps protect you from outsiders that cause harm or damage to property while operating your vehicle. Usually the people who cause damages are responsible for the costs of damage as well. Liability insurance is used for both personal injury claims and in some cases property damage to third parties.

What We Can Do About It

So how can you lower your premiums? The first thing you should know about this is that there's no way that you can buy a more expensive policy that will magically provide better coverage. You should buy the same policy with lower cost, usually because of a lower deductible. Then take a look at what kind of discounts your company offers and see whether they are worth buying. In general, many companies offer passenger discounts or incentives if you already have an existing driver on your policy or have purchased a new vehicle recently. Make sure to check online for current offers.

Also, be sure to work out all the details of the policy you are thinking about buying before you sign any paperwork.There are many aspects of car insurance policies that you might not understand, and these may impact your final costs. This includes things like what happens if your vehicle is stolen and needs to be replaced, or whether or not you'll have to pay more if your car gets damaged by a tree falling down in the street. Many policies allow an additional premium based on certain factors in order to cover these things when they occur (e.g. if you get hurt in a car accident, the policy will increase slightly as a way to cover your safety needs).

Another thing to do is keep an eye out for discounts/incentives that could be applied to your policy. For example, if you have coverage for your car but can't afford it because of a large deductible, you may be able to apply for discounts from banks or savings plans in order to lower the costs. In many ways, auto insurance is like any other form of insurance - there's no single way to lower costs, but taking the time to compare and negotiate with your insurance company can lower costs.

Make sure to keep all your documentation from any claims you've filed with your insurance company, as well as any offers you get. This way, in the event that you have to file an insurance claim, you can provide documentation of these things. Many companies ask for proof of multiple discounts/incentives when they offer them, so it's best to keep all this on hand.


There are lots of ways to save money on car insurance premiums, but there's no magic bullet that will lower costs without a conscious effort on your part. The main thing is to keep an eye out for deals and discounts and ask about them either online or over the phone. Otherwise, you'll just end up paying more for coverage that doesn't meet your needs.

Be sure to check out our other articles if you want more information on the ins and outs of car insurance. With our help, you can be confident that your coverage is both affordable and secure!


The Simple Dollar - Understanding My Car's Insurance Costs | The Insurance Information Institute - I.I.I. Consumer Facts: Auto Insurance - Association of British Insurers - I.I.I. Insuring Vehicles - Consumer Reports - The Massachusetts Court System's Automobile Insurance and Motor Vehicle Torts (M.G.L. c. 90, §14B) - Auto Insurance: How to Make It More Affordable | The Guide to Shopping for Car Insurance - Commuter Auto Insurance: Does it Save You Money?

Disclaimer: This article is for educational purposes only. It is not meant as legal advice. This article does not create an attorney-client relationship between you and attorney Brian Bonar or any of his associates at Brian Bonar Law. If you have any questions regarding your car insurance, you should directly contact an attorney licensed in your state of residence.

*This content was inspired by the article linked at the top of this page, and may be partially copied or reprinted without our express permission.


If you're a person who has ever applied for car insurance, then you know how tedious the process can be. When you're trying to figure out how to reduce your car insurance costs, it can be a long arduous task.

That is why we've decided to put all these tips together for you in one easy article that should cut down on your frustration and make the process easier. We wish you the best of luck when trying to get an affordable car insurance quote. Remember, we are here if you need help finding a better deal.

If you've found this article helpful, we would really appreciate it if you could share it with others as well.

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