Sometimes, we make saving money far more difficult than it should be. In fact, taking four easy steps can cut your annual car insurance bill by up to 12% — or $186 — on average.
That is among the findings of the 2020 The State of Auto Insurance report from insurance search engine The Zebra.
The average annual savings break down as follows:
- Buy with automatic payments: $24 savings (1.6%)
- Buy online with an electronic signature: $12 savings (0.8%)
- Pay in full: $85 savings (5.5%)
- Pay in advance by 10 days: $65 savings (4.2%)
The Zebra says not enough drivers are taking advantage of such opportunities to save:
“Many drivers are unaware that how and when they shop for car insurance and how they choose to pay for their policies can have a substantial impact on their rates.”
More ways to save on car insurance
The Zebra’s annual report revealed some other interesting information about the cost of car insurance. For example, by the time you are in your 20s, car insurance costs begin a decades-long drop that suddenly stops — and then reverses direction — after you reach a certain age.
Wondering when your rates are likely to rise? Find out in “Car Insurance Gets More Costly When You Reach This Age.”
Remember, whether you’re 18 or 80, there are always steps you can take to pay a little less for car insurance.
Periodically shopping around is one of the best ways to ensure you’re always getting the best coverage at the lowest cost, but you don’t have to do that homework yourself. If you prefer, services like The Zebra and Gabi will gather quotes for you.
Money Talks News founder Stacy Johnson tried Gabi, and liked what he found. Find out more about his experience in “How I Found $546 in Car Insurance Savings in Under 10 Minutes.”
How do you save on car insurance? Share your tips in comments below or on our Facebook page.
Earn more interest on your savings
Are you earning as much interest on your savings as you could be? Grow your savings faster with banks offering rates that are significantly higher than the national average. Find the best rates and start earning more interest on your savings by using the Money Talks News savings account and CD comparison tool.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.