Car insurance is one of the biggest expenses of owing a car. There are a few ways you can reduce the cost of your policy.
Maintain a good driving record
Tickets and accidents will drive your insurance rates higher than any other factor. Drive safely and obey traffic laws.
Shop around for coverage
Compare rates from several companies. Just be sure to compare rates for the same coverage. Standard coverage varies from company to company.
Raise your deductible
Carrying a higher deductible will lower your premium. Put some of the savings into an account to cover the deductible, if necessary or keep a credit card balance free to use in case of an emergency.
Buy all your insurance from one company
Most companies will offer a discount for buying multiple policies. This can save you money on your car, home owners, and life insurance policies.
Insure multiple vehicles
If you own more than one vehicle, a boat, or an RV, most companies will offer you a discount.
Lower the coverage on older vehicles
Drop comprehensive and collision insurance when the car gets older. A good rule of thumb is to drop all except liability when the value of the car is less than 10 times the yearly premium.
Compare costs before buying a car
Some models cost a lot more to insure than others. If you’re trying to decide among different models, the amount of the insurance premium could make the difference.
Maintain a good credit record.
Insurance companies are using credit records as part of their risk assessment. Paying your bills on time will save you money on your insurance as well as on your loan rates.
Check into group insurance rates
Some employers and associations such as alumni or professional organizations offer group insurance policies as a benefit.
Look for low mileage discounts
Driving fewer miles to work or driving under a specified miles per year can reduce your premium. Tell your insurance company if you carpool or drive less than 10 miles to work.
Check for other discounts
Some companies off discounts based on age or profession or college degree. Active or retired member of the military are eligible for discounts. Certain safety devices or defensive driving classes can also lower your premium. Some companies provide a discount for purchasing over the Internet. Always be sure to find out who to contact and how to get support before you need it.