How to Save Money on Car Insurance in 2021

Everyone likes to save money on their online car insurance and score deals that reduce the prices but most of them think there is nothing they can do actively to lower their car insurance. However that is not true, there is a lot you can do to reduce your insurance rates but there are some that are much easier than others and they all don’t apply to every insurance carrier.

This article focuses on the different things that affect your car insurance and how to effectively save money on car insurance in 2021.

Things That Affect Your Car Insurance Rates

Before looking for ways to save money on car insurance in 2021, you have to analyze the different factors that affect your car insurance rates and these include;

  • The age of the car. When you get into an accident with an old car, the cost of the repairs needed is much higher compared to the cars entire worth.
  • The credit score. Most insurance companies look at your credit score when determining your car insurance premium. The drivers with low credit scores pay higher insurance.
  • Safety rating. Cars with high safety rating have lower rates because you are not required to pay for your medical bills or that of anyone else since the chances are low of ever needing to.
  • The likelihood of theft occurring. Some cars genuinely have more chances of being hit by thieves than others. You should evaluate the type of car you are driving to determine how much your car insurance will cost you.
  • The size of your car. Large cars are usually safer than their smaller counterparts in an accident. Hence large cars have a lower premium than small ones. But cars with larger engines have higher insurance rates.
  • Your car’s driving history. If you have a bad driving record, insurance companies may refuse to give you insurance. This is because they believe that since you have a history of getting into accidents or making claims, you are more likely to do it again than someone else who doesn’t have a driving history that is as bad.

Ways to Save Money on Car Insurance

Having understood the different things that affect your car insurance rates, you can now look at the ways to save money on car insurance which include;

Find out about the discounts available. These lower your insurance rates and are often easy to get. In 2021 with the coronavirus pandemic, there are covid 19 discounts you could ask for. These provide discounts to customers that are going through financial difficulties due to the pandemic.

Look at multiple car insurance quotes. Always take your time when looking for a new insurance policy; this is to enable you to get a plan that fits your particular needs. It is better to get a few different quotes from different companies because every company has a different way of calculating its rates.

You should bundle your policies. Bundling is one of the easiest ways you can reduce your insurance premium. This is where you buy multiple insurances from the same provider. In that, you can buy both your insurance coverage and your home owner’s policy from the same insurance company hence saving and lowering your car insurance premium.

Compare and Shop Around. It is important to shop around when selecting what insurance company to go with and compare every one of them. This will enable you to obtain the best car insurance quotes. You can do this by calling insurance carriers or looking for auto insurance quotes online. Research as much as you can ahead of time to get the best deal.

Increase your deductibles. This is the most effective way that you can reduce your insurance rates. It is the out of pocket money that you can pay in case of an accident. It is important to set aside a certain amount of your car insurance premium saving to ensure you pay a higher deductible in times of accidents.

Drive less. You can smartly save money on car insurance by reducing your daily commute since the miles you drive impact your insurance rate. Driving less reduces the vehicle’s maintenance costs like gas and repairs. It is easy to do this; you can opt to use public transportation instead or decide to move closer to work.


Car insurance rates increase every year and you can’t predict how much you will be required to pay. However the above steps will help you reduce and ultimately save money on car insurance in 2021.