Sometimes it seems like car insurance companies are all the same. They all have similar products and offer similar prices — right? Actually, car insurance is more dynamic and varied than people might expect. The world of car insurance is sometimes surprisingly creative — and not just with funny ad mascots.
First of all: car insurance companies do not all charge the same prices. You can often save significant money by shopping around for auto insurance quotes. And different car insurance companies often sell unique types of insurance coverage that are not available from every insurer.
If you want to lower your car insurance prices or find interesting ways to save money by bundling home and auto, there are several distinctive options from car insurance companies. Insurance companies are not all the same, and you are not limited to just one option for insurance prices. Some insurers offer interesting plans that are out of the ordinary.
Let’s look at the most unique ways to save money on car insurance in 2024.
Sometimes it’s hard to know how much you’re going to pay for car insurance until you go through a time-consuming process of getting a quote. But what if you could reverse that, and choose the price first? Progressive makes this possible with its Name Your Price® Tool.
Go to the Progressive website and start by entering your ZIP code into the Name Your Price® Tool. You can then tell Progressive how much money you’re willing to pay for car insurance, and Progressive will show you some coverage options that fit your budget.
Read more: check out our picks for the best car insurance companies
2. Nationwide SmartMiles® pay-per-mile car insurance
Do you ever feel as if you’re getting overcharged for car insurance? If you don’t drive very often, having to pay a flat rate for auto insurance every month might not feel like a good deal. Fortunately, Nationwide’s SmartMiles® program can let you sign up for pay-per-mile auto insurance.
With pay-per-mile insurance, your auto insurance premium will be based on the number of miles that you drive. You’ll be charged a base rate per month (that does not change) and a variable rate based on a cost per mile (such as $0.07 per mile) multiplied by the number of miles driven per month.
Exact details will depend on where you live, your age and driving record, and other factors. But here is a simple example of how pay-per-mile insurance can work:
| Base rate | $50 |
|---|---|
| Variable rate | 800 miles driven x $0.07 per mile = $56 |
| Total monthly premium: | $106 |
Data source: Author’s calculations.
In this example, if $106 is less than you’d pay with a traditional insurance premium, pay-per-mile coverage could be a good deal. But it all depends on how many miles you drive per month — if you drive more than usual, your premium will go up.
Nationwide is not the only car insurance company that offers pay-per-mile insurance. But it has the best, well, “nationwide” availability for this type of policy. Nationwide SmartMiles® is available in almost every state, except Alaska, Hawaii, Louisiana, New York, North Carolina, and Oklahoma.
3. State Farm Drive Safe & Save™
If you’re a safe driver who always obeys the speed limit, it can feel frustrating to see your car insurance premium keep going up year after year. Why should you be punished for everyone else’s car crashes? One of the most unique ways to save money on car insurance is a relatively recent concept called “telematics insurance.”
With telematics, you can sign up to share some driving data with your insurance company. These programs use a mobile app or other device to monitor your driving behavior and give you personalized car insurance that rewards safe driving.
One of the best car insurance companies for telematics is State Farm. The State Farm Drive Safe & Save™ program offers safe driving discounts of up to 30% (or more, depending on your state), and it’s all based on your everyday driving habits and smart choices behind the wheel.
If you’re tired of your monthly budget getting wrecked by everyone else’s speeding tickets and expensive car crashes, a telematics plan like State Farm Drive Safe & Save™ could help you save money. This unique type of car insurance lets you take control of your costs and be rewarded for making better choices as a driver.
Bottom line
Not all car insurance companies are the same. Several companies are offering unique, creative insurance plans that can help lower your auto insurance premiums. By naming your own price, paying per mile, or getting rewarded for safe driving decisions, you have options and flexibility to reduce your auto insurance costs in 2024.
Our best car insurance companies for 2024
Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.