How to Save on Auto Insurance

How to Save on Auto Insurance

Automobile insurance rates are based on a number of factors including location (urban vs. rural), driver characteristics, and type and use of the vehicle. However, there are many things you can do to reduce the cost of your policy premium.

• Comparison shop. Prices for the same coverage can vary greatly.
• Raise your deductible. The more you pay before an insurer pays on your claim, the lower your premium will be.
• Lower coverage for older cars. Consider dropping collision and comprehensive coverage on older cars worth less than $1,000.
• Buy a "low profile" car. Cars that have high theft rates or are expensive to repair often have higher insurance rates.
• Pay premiums in one lump sum. Save service charges by paying all at once rather than in monthly payments.
• Skip the medical payments coverage. If you and your regular passengers have adequate health insurance, you may not need to buy this optional coverage.

Discounts

Discounts vary depending on your insurance company. Ask your insurer about the discounts you are eligible for that are not automatically applied to your policy. The following discounts could help you reduce your costs:

• Low mileage or restricted mileage discounts. The less you drive, the more you save.
• Safety feature discount. Automatic seatbelts, airbags, and anti-lock brakes can not only save your life but also save you money.
• Anti-theft device discount. Ignition and fuel cut-off systems, alarms, hood and wheel locking devices, and window identification systems can protect your car and lower your premium.
• Multi-car discount. Insuring more than one car with the same company qualifies you for a discount with many companies.
• Loyalty discount. Insuring your car with the same company for a certain number of years can also provide you with a discount.
• Other discounts. Other characteristics insurance companies may take into consideration include:
  • Over age 55
  • Non-smoker
  • Safe driving record
  • Completion of driver-training course
  • Car-poolers
  • Students away from home without a car
  • Good grades for students

Before talking to an insurance planner or requesting a quote, make sure you understand your auto finance insurance options.