Care insurance

How to Save Your Money on Car Insurance: 7 Smart Ways to Lower Rates

Car insurance shouldn’t drain your bank account. Here’s how to save money while getting the coverage you need.

Car insurance costs an average of more than $135 per month, but that doesn’t mean you’ll pay that price.

Companies base their rates on a number of factors, from the type of car you drive to how long you’ve been insured. If you understand what affects your car insurance costs, you can get good coverage without going broke.

7 smart ways to save money on car insurance:

1. Compare prices

Although auto insurers use similar factors, such as age, driving history, and location, to calculate auto insurance costs, they weigh these factors differently. That’s why it’s important to compare rates.

To explore the importance of comparison shopping, We compared rates for 35-year-old drivers buying full coverage insurance. We found that costs vary by hundreds of dollars per year.

In fact, good drivers with good credit can save more than $150 a month, on average, by switching from the most expensive to the least expensive insurer in their state. And the savings can be even greater for drivers with a recent accident or bad credit: nearly $250 and $400 per month on average, respectively.