11 Money-Saving Tips Insurance Agents Won't Tell You

Auto insurance helps you pay for expensive repairs after an accident or other mishap. But at the end of the day, an insurance business is still a business, which means it exists to make money.

As a result, your insurer might not rush to tell you all the ways you can cut insurance costs and get ahead financially .

Here are some insider tips on how to make insurance work better for you. Keep reading to start saving.

1. Shopping around can get you better rates

It might be tempting to settle for the first car insurance offer you find, but resist the urge to seal the deal before shopping around.

Shopping around, gathering quotes, and selecting the best policy is a great way to save money on car insurance . You might find that a seemingly sweet deal isn’t as good as you thought it was once you compare it to policy options from other providers.

2. You can fight back if an insurer denies your claim

If you submit a claim that your insurance provider denies, you don’t have to resign yourself to paying for everything out of pocket.

Instead, carefully review the denial. Then, get in touch with your provider directly to ask more questions about its decision, including what you can do to appeal and whether the company needs additional evidence to reevaluate its decision.

3. Rates might be higher simply because of where you live

Some areas of the country are more expensive places to live than others. Those higher expenses might include the average cost of insurance.

Even within the same city, some neighborhoods will likely have higher insurance costs than others.

While you can’t do much about the cost of living in your current area, consider local insurance rates as you strategize your next move. At the very least, you will want to account for the increased insurance costs in your future budget.

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4. Gender can impact how much you pay for insurance

Women can end up paying slightly less in insurance over their lifetime, in part because many insurance companies consider teenage boys the highest-risk drivers to insure.

Unfortunately, there’s not much you can do to eliminate rate discrepancies between genders. But you might be able to save by shopping around for insurance.

For instance, according to one study, some insurers charge women in their 30s slightly more than they charge men of the same age. At other insurance companies, the opposite is true.

Comparing rates and gathering multiple quotes can help you get a better read on whether an insurance company might charge you more or less based on your gender.

5. An insurance guide might help you find lower rates

Instead of calling around to multiple companies and asking for quotes, find out if your state publishes a buyer’s guide.

Googling your state’s name plus “insurance buyer’s guide” might get you a state-approved, unbiased overview of insurance rates in your area, which can save you time and energy as you narrow down possible insurance providers.

6. Your credit score might impact how much you pay

There are plenty of reasons to keep a sharp eye on your credit score , including the fact that a lower credit score might result in a higher insurance rate.

In many states, insurers use credit-based insurance scores when setting rates. In these places, keeping your credit score as high as possible and monitoring your score for fraud can maximize your chances of lowering your insurance rates.

7. Improving your credit score can cut your costs

If you managed to increase your previously poor credit score by paying bills on time and getting rid of debt, don’t hesitate to gather new quotes based on your improved credit.

You might find that it’s worth switching to a new provider who will reward your good credit.

8. Marital status can impact how much you pay for insurance

For better or worse, insurance companies tend to consider married couples safer drivers than single individuals.

Whether you are married or not, be aware of how your marital status will impact the quotes you get. And if you got married recently, make sure to ask for new quotes when you update your car insurance.

9. What you post on social media can hurt your insurance claim

Before you file an insurance claim, make sure the evidence you submit can’t be contradicted by any recent social media posts.

Plenty of insurance cases have been undone by public Facebook or Instagram posts. So, your best bet is to stay off social media until the claim is resolved.

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10. You might qualify for additional discounts

Consider reaching out to your insurance agent and asking if it offers discounts you aren’t aware of, such as price breaks for students who earn good grades.

You might never know about these discounts if you don’t ask.

11. You can save by letting an insurer monitor your driving

Some insurance companies offer app-based programs that monitor your driving and reward you based on good driving behavior. The app tracks where you drive, how fast you drive, and how you interact with other drivers.

As long as you are a safe driver, the app could work in your favor by saving you money and improving your financial situation . But beware that monitoring can backfire if you engage in bad driving behaviors.

Bottom line

Car insurance is a valuable tool for protecting yourself in the event of an accident, and it’s a legal necessity in nearly every state. Going without simply isn’t an option.

But don’t make the mistake of thinking you are automatically getting the most out of a policy because there is a good chance you are not.

Dig a little deeper into the ins and outs of car insurance to make sure you boost your bank account by saving as much money as possible.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).