By Aniket Bose. Edited by Arjun Chandrasekar


Car insurance is insurance that is meant for cars, like life insurance is meant for humans. It is a contract between you and the insurance company that protects you from financial loss, in the case of an accident or a theft. While purchasing car insurance, you have to pay a premium fee to the insurance company and in return, they agree to pay the losses that you face in an accident that is outlined in the contract. 

How to Save on Car Insurance Costs

 The first thing that you should consider when getting car insurance is taking advantage of getting discounts from insurance companies. For car insurance companies, the most common way to get a discount on the premium that you have to pay is getting car insurance for multiple cars. If you sign a contract with an insurance company for providing car insurance for just one car, then you end up paying more for each vehicle than if you inquired the insurance company about their deals with several vehicles/drivers. It’s also possible for two people that are not related to receive a discount on their car insurance, but they have to jointly own the vehicle that they are buying the car insurance for. 

Take a Defensive Driving Course

Some insurance companies provide their clients with discounts if they complete an approved defensive driving course. It’s also a good idea to ask your agent/car insurance company before you decide to take a defensive driving course so that they can provide with you any additional advice and that the effort that you are expanding on the defensive driving course will result in discounts while purchasing car insurance. 


Some other tips to consider when purchasing car insurance consist of shopping around for better car insurance rates, using mass transit, downsizing your vehicle so that you have to pay less for car insurance, increasing your deductible, improving your credit, reviewing your coverage, getting discounts for installing anti-theft devices in your vehicles, and dropping any coverages that you are unnecessary paying for that you don’t need. Overall, car insurance is a contract between the insurance company and you, where you pay a premium fee to the insurance company for them to cover any losses that you face in the case of an accident or any damage to the car or yourself. 

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