Simple Ways to Lower Your Auto Insurance Premiums

Auto insurance can be a very expensive necessity. A good policy can cost you anywhere from a few hundred to a few thousand dollars a year. This can be quite the strain on your budget if you are overpaying for your auto insurance. To reduce this strain, we’ve compiled ten simple tips to help you lower your auto insurance premiums by as much as 40%. Here’s what you can do:

1. Shop around. It is always a good idea to compare many different policies when you are shopping for auto insurance. Most experts recommend that you get at least two or three quotes on policies before committing to one. This will help you find the best deal.
2. Increase your deductibles. As a general rule, the higher your deductibles are, the lower your premiums will be. This is because you are assuming more financial risk with higher deductibles, so the insurance company is able to offer you reduced premiums. However, keep in mind that higher deductibles mean higher out-of-pocket costs if you are in an accident.
3. Eliminate certain coverages from your policy. Not all auto insurance coverages are absolutely necessary. You want to keep coverages like bodily injury liability and property damage liability, as these are required by law. Coverages that you might eliminate include collision, comprehensive, medical payments, and uninsured motorist.
4. Drop collision & comprehensive for older cars. If you drive an older car with little to no cash value, collision and comprehensive coverage will do you no good. The insurance company will only reimburse you for damages up to the cash value of the vehicle.
5. Keep your credit report looking good. Your credit report is one factor that influences your premiums. By paying your bills on time and maintaining a good credit history, you can keep your insurance rates low.
6. Drive less. Most insurers offer low-mileage discounts to policyholders who drive less than a certain number of miles per year. You can use the bus, carpool with friends, or take a plane when driving to another state to save on mileage.
7. Keep your driving record clean. You will enjoy a significant discount if you do not have any moving violations within a certain period of time. Try to avoid accidents, speeding tickets, etc. by driving defensively at all times.
8. Select a low-profile car. Sports cars and high performance vehicles will cost more to insure because they are a higher theft risk and the drivers of these vehicles are more likely to be reckless. Large vehicles and new cars also cost more to insure. Low-profile cars include relatively small, safe sedans.
9. Look into safety & security discounts. You may qualify for certain discounts if your car is equipped with the following safety features: air bags, anti-lock brakes, automatic seat belts, tracking systems, car alarms, etc.
10. Ask about other discounts. Insurers offer a plethora of discounts, but you usually have to ask about them first. Ask your agent about discounts for which you might be eligible.

Additional Resources:

• Vehicle Insurance
• Ways To Lower Your Auto Insurance Costs