Auto Insurance

3 Tips for Shopping Around for Cheap Car Insurance

By: Vanessa Page on December 23, 2015
Article image

Shopping for car insurance is one of those tedious things, like visiting the dentist, that people ought to do every year but often put off. Also like visiting the dentist, shopping for car insurance means paying a hefty bill at the end of the process. Unless you’re a smart shopper, you can end up paying more than you need to.

Compare, compare, compare

It’s easy and convenient to renew your insurance policy every year. Just send off a cheque or renewal confirmation and that’s it. To really save money though, you’ve got to shop around. Although few insurance companies offer loyalty discounts, almost every insurance company offers new customer discounts. Sounds like a win-win to me.

When comparing cheap car insurance rates, you can go to each individual website and spend an entire day putting the same information into each company’s forms, or you can visit a broker – either in-person or online – and have someone else do all that legwork for you. Quickly comparing multiple car insurance quotes gets you the cheapest price with minimal effort.

Don’t buy too much

It’s easy to get carried away sometimes and plan for every possible negative outcome. While it may quell your anxiety to purchase the luxury package of insurances, it doesn’t come cheap. In fact, shopping for cheap car insurance follows the same common sense rule as grocery shopping: make a list and stick with it.

There are so many variables in car insurance shopping that it’s important to know what you need and to stick with it. It doesn’t make sense to get collision coverage when you have an old junker. It doesn’t make sense to bundle home and auto insurance when you have nothing of value in your house. If you have a large emergency fund, having a high deductible can save you on your monthly payment. However, spendaholics should be wary of high deductibles since it could mean financial ruin if there’s an accident.

Do your research

Researching how car insurance rates are calculated can potentially save you lots of money. Car insurance companies like safe indoor parking spaces. They also like cars that have security alarms and drivers that have taken driver’s education courses. This makes sense; the insurance company wants to make sure that your car is as safe as possible so that they don’t have to pay out claims.

Armed with your research and a bit of time, you can make lifestyle changes that will save you money on car insurance. Simply parking off-street and buying winter tires can result in lower premiums! Once you’ve chosen a car insurance policy, make sure to ask if there’s a discount for paying the total amount upfront. There’s no sense in paying more for monthly payments if you can afford to pay the whole thing at once and save in the long run.


Car insurance shopping doesn’t have to be complicated or stressful. In fact, shopping for car insurance should be taken as a personal challenge to get a lower price every year. With enough research and forward thinking, you’ll be able to save big by buying cheap car insurance.

Image Courtesy of Adobe Stock