Insurance Advisor at Oliver L.E. Soden Agency, Inc

5 New Ways to Save on Car Insurance

Car insurance is a numbers game. This is why rates vary between companies and why your premium may increase or decrease. Many factors are taken into consideration when determining your rates, and some of them are out of your control. For example, if people with your same vehicle have more accidents, you’ll end up paying more, too. Fortunately, you can shop around for the best rates and take charge of the factors that are in your control.


Here are five new ways to help you save on car insurance.


1. Don’t ignore local insurers.


Did you know that just four companies control almost half of the nation’s auto insurance business? Those four companies are State Farm, Progressive, Allstate and Geico. They are also the companies that have the most commercials and the strongest advertising. But, smaller insurers have high customer satisfaction ratings and competitive rates. Be sure to get quotes from them, too.


2. Know your discounts - and ask for them.


A phone call directly to your local agent is always a good idea. This gives you a chance to go through the various discounts you may be eligible for and ensure that they are applied. Whether intentional or not, discounts commonly slip through the cracks. Here are the discounts we recommend inquiring about.


  • Bundle car insurance with other policies

  • Insure multiple cars on one policy

  • Maintain a clean driving record

  • Reward students with good grades

  • Pay 6- or 12-month premium at once

  • Receive documents online or pay through auto-pay

  • Own a vehicle with anti-theft or safety features

  • Be a member of an affiliate group or professional organization


3. Maintain a good credit score.


Your credit score influences the price you pay for insurance. The only states that can’t use credit ratings to determine rates are California, Hawaii and Massachusetts (sorry New Jersey). Insurance companies say that customers’ credit ratings tend to correlate with filing claims. To save on your premiums, improve your credit rating and pay your bills on time to reduce debt.

4. Shop around for the best rates.

Whether you enjoy the commercials from a particular insurance company, or you’ve been recommended to an insurer by a friend, don’t assume any one carrier is the cheapest. The best thing you can do is shop around and compare quotes. One insurance company may be the least expensive option for one person but the most expensive for another.


5. Skip collision and comprehensive coverage on an older vehicle.


If you have an older car, you may not need to pay for both collision and comprehensive. Collision coverage pays for damage that occurs between your vehicle and an object (including other vehicles) while comprehensive pays for damage from weather, theft or vandalism. What the insurance company will pay is based on the market value of the car. If your car is only worth a few thousand dollars, it's probably best to drop full coverage.


There are always ways to save money on car insurance! To see what discounts you qualify for with Soden Insurance, give Hal Soden a call today. We have great service and competitive rates - compare us today!