Lower Your Car Insurance:  10 Tips

Most people are paying too much for their car insurance.  We don’t realize this because we simply keep renewing our policy and assuming it is the best deal out there because it was the best deal three or five years ago.  When you learn a little bit more about car insurance you can save up to 40%!  When you are knowledgeable suddenly you are able to shop smart.  There are some simple ways in which you can begin to save right now.

Shop around and compare policiesThere are states which regulate auto insurance rates, but the insurance premiums can vary by hundreds of dollars for the exact same coverage. It is definitely worthwhile to shop around. The first thing you can do is to check with your state insurance department. They often provide information about the coverage you need, as well as sample rates from the biggest companies. You can also ask your friends or look up the yellow pages.

Don’t shop on price alone Excellent personal service is available as well, and they provide added conveniences, although they cost a fair bit more. Ask the company how you can lower your costs, and also check their financial ratings. The rule of thumb is always to get three price quotes from three different companies, and pick the one with the best value.

Increase your deductiblesYou don’t have to increase your deductible by much, but you can decrease your premium by accepting more responsibility. A higher deductible on collision and comprehensive coverage can lead to a much lower premium. For example, increasing your deductible from $200 to $400 can reduce your premiums by up to 25%.  Just make sure you have the money in the bank to cover your portion of the deductible.

Do away with unnecessary coverage Almost all the states require liability coverage for your car, but the rest of the coverage is probably dispensable. However, you do not want to be underinsured if you're in an accident, so it isn't advisable to remove all of your additional coverage. Optional coverage includes medical payments, uninsured motorist, collision, and comprehensive coverage.  Don’t under insure, but also do not over insure.  Do your homework to decide what is the right coverage for your specific needs.

Drop expensive coverage for older vehiclesIs your car worth less than?  If so,  it's probably more cost-effective to drop collision and comprehensive coverage since you'll probably pay more for the coverage than you'll collect for a claim. You can find out the worth of your car by asking auto dealers and banks.

Consider your credit scoreYour credit history is important as many car insurance companies look at your score to determine how much of a liability you are. If you pay your bills on time and maintain a good credit history, you can enjoy lower insurance rates.

Accrue less mileage Insurance companies often offer low-mileage discounts to motorists who drive less than a predetermined number of miles each year. You can use public transportation more often, car-pool with friends, and take the train or a plane instead of driving to another state. And you'll save on more than your coverage as you'll need to spend less on gasoline (of which prices are incredibly high).

Drive safely and carefullyYou can earn discounts through most companies with a clean driving record. This means that you have no accidents, no serious driving violations etc, during this period of time. The simplest and surefire way to qualify for this discount is to drive carefully and defensively all the time.

Buy the right type of carYou should know that sports cars and high-performance cars tend to cost more to insure, mainly because they represent more risk of theft and the drivers are often the people who drive more recklessly. Newer cars will cost more to repair or replace than older ones, so naturally they can more to insure. Low-risk vehicles include station wagons and sedans and will cost a lot less to insure.

Safety and Security.You can receive discounts for many safety and security features such as anti-lock brakes, air bags, automatic seat belts, car alarms, tracking systems. These reduce the injury risk to you, as well as the chances of your car being vandalized or stolen so the savings are not the only highlight.

Ask for discountsDon’t be afraid to ask for discounts, this is where personalized service will come in handy. You may receive a discount if you buy more than one type of insurance from the same company or if you insure multiple cars under the same policy or company. You may also receive discounts for taking a defensive driving course, staying with the same company for a few years, being a driver over 50, good-student discounts, and being an AAA member.  The list goes on and on, so inquire with your insurance company.