Ten Tips to help you Save on Car Insurance

Car insurance is an expense shared by almost everyone who drives a car. All states require car owners to provide proof of financial responsibility in the event of an accident, and most states require drivers to maintain at least a minimum amount of car insurance as a prerequisite to lawfully driving a car. Car insurance premiums can vary greatly. Here are 10 tips to help you save on your car insurance. 

1. Shop around. 

Car insurance premiums can vary a great deal between companies. You have probably seen car insurance advertisements touting average savings of $500 for people who switch their car insurance. You may have wondered how almost every insurance company can make this claim. Most insurance companies can make this claim because generally drivers do not switch insurance from one company to another unless the driver is going to save money by switching. 

Instead of just automatically renewing your car insurance policy each time it comes due, get a quote from 2 or 3 other companies. You may find that you are able to get the same coverage for a lower rate from another company. 

2. Keep a clean driving record. 

Your driving record is a major factor that goes into calculating your car insurance premium. Keep your driving record clean by obeying traffic laws and by driving carefully to avoid accidents. Do not drink and drive, since having a DUI on your record will cause your car insurance premium to go up substantially. 

3. Pay your bills on time. 

Most car insurance companies review your credit when determining your car insurance premium. Customers with bad credit can expect to pay as much as 50 percent more for their car insurance than customers with good credit. 

4. Consider dropping some coverage on older vehicles. 

As a rule of thumb, you should consider dropping collision or comprehensive coverage on a car if the current market value of the vehicle is less than 10 times the amount of the premium for collision or comprehensive coverage. You should always review your coverage levels when you renew your car insurance policy to make sure that your coverage levels are appropriate. 

5. Raise your deductible. 

You can reduce your car insurance premium by raising your deductible amount. By raising the deductible, you assume responsibility for a greater portion of any loss. You should be aware that many car loans require that the insurance deductible not exceed a stated maximum amount. Before raising your deductible, be sure to check the requirements of your car loan to make sure that you comply with your lender’s insurance requirements. 

6. Buy the right car. 

If you are looking to buy a car, check the cost to insure the car before buying it. Expensive cars, cars that are frequently stolen, cars that are expensive to repair, cars with poor safety records, and fast cars all tend to be more expensive to insure. 

7. Avoid monthly payments. 

When purchasing a car insurance policy, you will save money when you pay the entire premium in advance. 

8. Multiple policy discounts. 

Most insurers offer a discount to policy holders who have multiple policies with the company. You may be able to achieve substantial savings by placing your homeowners and car insurance with the same company. 

9. Explore group insurance. 

Some insurance companies may offer discounts to customers who purchase their insurance through a group plan. You should check with your employer and any groups that you are a member of to see if any group discount programs are available to you. 

10. Take all available discounts.

Check to see what discounts are available to you. Insurance companies may offer discounts for low mileage drivers, drivers who have taken driving safety courses, multi-car discounts, and for safety or anti-theft devices on vehicles. You should check to see if these or other discounts are available to you. 

Car insurance is a necessary expense for all car owners. Car owners can save on their insurance by obtaining quotes from multiple companies, selecting the appropriate coverage, and obtaining available discounts.