Car insurance policies with multiple car discounts, yearly terms, group discounts, lower levels of coverage, and those that combine different types of insurance are cheaper than standard policies, notes About.com. Car insurance policies are also cheaper if their cost is based on driving quality, which is determined through usage-based auto insurance devices that drivers place on their vehicles. This device sends driving quality data to the insurance company, who may in turn cut rates.
People who have multiple vehicles should check with insurance agents to determine if they offer discounts to owners who purchase combined policies, states About.com. These policies may cost less than if one car is removed and the premiums are adjusted. Auto insurance policies that provide coverage for one year rather than six months may prove to be cheaper, as premiums don't change for a year. People can also get discounted car insurance policies by signing up for a group discount through organizations that partner with insurance companies, such as credit unions and credit card companies.
Car insurance policies that have lower liability, comprehensive, collision or medical payment coverage are cheaper than standard policies, though policy owners will have to pay higher deductibles after accidents, notes About.com. Some insurers offer cheaper insurance when customers bundle products, such as car and homeowner's insurance.