Saving Money on Auto Insurance: Tips and Tricks

While most drivers know that auto insurance is important—and in many states, a legal requirement for all drivers—no one wants to pay more than necessary to insure their vehicles. Whether you are shopping for auto insurance for the first time, or if you already have an auto insurance policy, considering the tips included here could save you money on your insurance premium costs. A little time spent on research can save you a significant amount on your insurance premiums, if you know what aspects to consider. First and foremost, get a fewauto insurance quotes from different companies. Use our online form to compare up to five quotes quickly.

The Basics:

• A higher deductible can keep your premium costs down.Auto insurance companies charge more for low deductibles. If you keep your deductible higher, you will pay higher out-of-pocket costs should an accident occur; however, a small increase in your deductible may equal significant savings on your premium—it may even exceed the cost of your deductible.
• Consider the types of vehicles you insure. A very expensive vehicle, a vehicle with a poor safety record, or a vehicle that is popular with car thieves may cost you more to insure. A safe, moderately-priced vehicle is likely to cost less to insure. If you sell a vehicle or own one that you no longer drive, be sure to take it off of your policy.
• Drop unnecessary coverage. It may make sense to insure a new vehicle or a vehicle that is still being financed—this may even be a requirement of your lender—but it might not make sense to carry coverage such as collision or comprehensive on an older vehicle. If you are paying more for these types of insurance than the vehicle is worth, consider discontinuing this type of coverage. Also, make sure to keep the list of drivers on your policy current and to remove drivers who no longer need coverage on your policy—for example, adult children who purchase their own auto insurance should be removed.
• Ask your insurer about eligibility for discounts. Many auto insurance policy holders are eligible for various discounts. Some insurers offer discounts for long-time customers, for safe or accident-free driving records, and for having safety features on your vehicle (such as air bags or anti-lock brakes) or theft-protection devices installed in your vehicle. For the notoriously expensive-to-insure teen drivers, some companies may offer discounts for good grades and driver education or safety classes. Older drivers may also qualify for discounts by attending safe driving classes or staying accident-free.