5 Ways to Save on Auto Insurance

by Guest on December 21, 2010

DilemmaEveryone likes to save money; however, the ways to save aren’t always obvious. Auto insurance can be costly, but you don’t have to sacrifice an arm and a leg to stay insured. Follow these five tips to save some serious money on your car insurance.

1. Compare, compare, compare.

Comparison shopping is the most obvious way to save as much as you can on your auto insurance. Just like anything else, car insurance rates vary from company to company. In order to successfully shop around, first find out the absolute minimum amount of auto insurance you need in order to be legally covered. Now get quotes from at least three different insurers. Look at price, the company’s customer service, its reputation, and the types of discounts each company offers before deciding on one company over another.

2. Stock up on discounts.

Find out what discounts your insurer offers, and get as many as you possibly can. A few common discounts to ask about are:

  • Defensive-driving class discount – By taking one class, you can get up to 10% off with some insurers.
  • Combination discount – If you go to the same insurer for both auto and home insurance, you can often save up to 20%.
  • Good-student discount – In school? Have a GPA of 3.0 or higher? Some insurers will knock off as much as 25% for being a good student.
  • Association and group discount – Some insurers offer discounts for members of various associations such as military groups, Mensa, and professional organizations. Be sure to ask your insurer if they offer this type of discount.
  • Retirement discount – If you’re retired, you may be able to get a discount from your car insurance company.
  • Safety discount – Some insurers offers discounts for drivers that have specific safety features such as antilock brakes on their car. Be sure to ask your insurer.

3. Get a higher deductible.

The deductible is the amount that you pay before your insurance takes over when you file a claim. By increasing your deductible, you can save up to 40% on your premium, which means you save money on your regular auto insurance payments. However, keep in mind that with higher deductibles, you’ll have to pay more out of pocket if you do end up having to file a claim.

4. Drop excessive coverage.

If you own an older automobile, it may not make sense financially for you to pay for collision or comprehensive coverage, which can account for over 40% of the cost of your premium. In order to make a wise decision, think about the amount of money you pay annually to insure your car versus the amount that your car could be sold for. You might find out it costs more to insure your older vehicle than it would to just replace it. In that case, talk to your insurer about dropping extraneous coverage.

5. Always stay insured.

Never, ever let your car insurance lapse. Doing so can make it difficult to get car insurance in the future, and it can also cause your premiums to increase drastically. Always stay on top of your auto insurance premiums, and never let your insurance expire, even for a short period of time.

These are just five ways to help you save some dollars on your auto insurance. By taking these steps, you can help your car insurance premium to decrease while also staying insured and safe on the road.

This article was written by Katrina Robinson, a guest writer who typically writes about ways to save money on car insurance as well as ways to live frugally without sacrificing too much.

Discussion

Army insurance
Where do you guys get your army insurance? I want to price compare with Navy Fed (www.navyfederal.org/products-services/investments-insurance/insurance.php)
July 5 at 16:06 pm
Naaarrren
One should definitely have uninsured insurance, with so many illegals driving cars in the country, thats is your only safety net if some illegal crashed your car
January 26 at 09:28 am
songdesmond
Great tips! I want to add that you should always check with your employer or any group that you belong to, if they have tie-ups with any insurance company so that you can get a good deal. Something along the lines of what AARP members get from The Hartford and Foremost

Source: http://aarp.thehartford.com/Auto-Insurance/
December 30 at 05:01 am
Robert Platt Be
Also consider dropping towing and rental car coverage (provides a rental car in case of an accident).

Also think about dropping medical ($10,000 of coverage? You already have health insurance).

Also thin about dropping uninsured motorist (expensive to have a lot, and a little is worthless).

But DO look into an umbrella liability policy of $1M or more - that is where you real risks are. Such a policy is about $200 a year or so.

I pay $31 a month for two cars through GEICO, plus the umbrella
December 21 at 21:51 pm

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