Twelve Ways to Save Money On Your Auto Insurance

Probably just about everyone you know complains about how much their auto insurance costs. This shouldn’t come as a surprise, since most people pay at least a couple hundred dollars every year for their auto insurance. Of course, your policy premiums can cost you a lot more than that because of your driving record, age and a number of other factors. So is there actually any way to pay lower auto insurance premiums and save some money?

You can’t go without auto insurance if you own a car, because it is illegal in most states. You are also required to have a minimum amount of liability coverage, too. Of course, smart drivers usually have more than the bare minimum of auto insurance coverage if you want to have protection that is adequate and appropriate for your personal needs. So what do you do to save yourself money? You can reduce the cost of your auto insurance in a few simple steps and not cancel your policy outright. Below are twelve ways to reduce the cost of your auto insurance. However, not all of these ideas will work for you, but chances are good that you will find one or more that are appropriate for your needs.

Twelve ways to save money on auto insurance:

1. Shop around
You don’t have to keep the same old auto insurance policy forever. It pays to shop around, especially when your policy is getting ready to be renewed. If your policy premiums are going up, you might find that you can get the same type of coverage for cheaper than you are paying now. Auto insurance prices vary widely among different auto insurance companies even though they are all regulated by the same state agency that dictates auto insurance range limits.

2. Make Sure your Credit Score is Good
Every auto insurance company is going to look at your credit report when the offer you an insurance quote. The reason for this is because there is a relationship between people who have a poor credit history and engage in driving behaviors that put auto insurance companies at risk. People who pay their bills on time and have a good credit score find that they pay less for auto insurance than people who don’t.

3. Increase your deductible
Raising your auto insurance deductible is another simple way to lower your auto insurance premiums. Increasing your deductible can reduce your overall auto insurance costs by as much as ten percent. You can increase your deductible from $250 to $500, and your premium will go down. However, you need to keep in mind that you will have to have the financial resources to pay your higher deductible if you get into an accident.

4. Drive less
This may sound like a no-brainer, but many auto insurance policies will give you a discount if your meet their low-mileage requirements. This can usually be around 7500 miles a year. If you think you can qualify for this, go for it! Some ways you do this are to use public transportation or carpool for your daily commute, and take the train or fly if you plan on going on vacation.

5. Drive Safely
Again, a total no-brainer, but if you have a clean driving record for a specific period of time, you can get a “safe driver” discount. Most auto insurance companies require a three year period in which you have had no accidents, speeding tickets, convictions for drunk driving, and any other moving violation. Most drivers can qualify for this discount by driving defensively and making careful driving decisions as your go about your daily life.

6. Don’t use your car for business
When you use your car for business purposes, you will usually have higher premiums because it means the auto insurance company must assume more risk on your behalf. If you don’t have to use your car for business, then don’t.

7. Buy a lower profile car
Auto insurance companies rate vehicles on a risk scale. This means that sports cars, high performance vehicles and other flashy rides are considered to be at the high end of the risk scale. This is because these vehicles are more likely to be stolen, and the people who drive them tend to make poor driving decisions, including reckless driving and speeding, just to name a few. If you drive a high profile vehicle, be prepared to pay more for auto insurance than if you driver a sedan or some other type of lower risk vehicle.

8. Store your car in a garage at night
Auto insurance companies will give you a discount if you store your car in a garage at night. This is because cars that are in a garage run less risk of being vandalized, stolen, or hit by another motorist. The discount for this is usually small, but every little bit helps when it comes to lowering your auto insurance premiums.

9. Move To Another Area
People who live in rural communities tend to have less crime and less traffic congestion than people who live in more urban city areas. This is because urban vehicles can be stolen, vandalized, be involved in an accident and be subject to more wear and tear than rural vehicles. Consequently, auto insurance companies will charge less for rural drivers. Of course, you can’t move just to save money on your auto insurance, but you can consider that an issue if you are thinking about moving from one area to another.

10. Install safety and anti-theft devices
Auto insurance companies offer discounts on safety devices like automatic seat belts, anti-lock brakes, and airbags. They also offer discounts for anti-theft devices like alarm systems or tracking systems that will track your vehicle if it is stolen.

11. Check into multifamily/multipolicy discounts
Most auto insurance companies offer discounts if you use them for other types of insurance, as well. For instance, you can have your home and auto insurance through the same company. There can also be discounts for insuring more than one vehicle with the same company.

12. Other discounts
Most auto insurance companies offer a myriad of discounts based on various criteria. Ask about discounts for being an AAA member, taking defensive driving courses, or being a loyal customer.
You never know until you ask!