If you're paying a high premium for your car insurance, it's time to start thinking about how you can save money on it. In addition to your car payment and gas, insurance can add up to more than a few hundred dollars a year, so it's important to take steps to make sure that you're getting the coverage that you need without spending too much.
Check your policy frequently to make sure you're not missing out on discounts or special offers that you may be entitled to. Some discounts are available for taking an approved defensive-driving class, for being a student or member of certain organizations.
You can reduce your insurance premiums by choosing a vehicle with the correct trim and safety features. You could save several hundred dollars each year if you choose cars with a higher MSRP.
Auto insurance rates can be reduced by lowering your mileage or avoiding parking at lots. Your car's fuel economy can lead to lower insurance rates and less expensive repairs in the event of a collision.
Worters says you can also reduce your car insurance premiums by raising your deductible. "If your willing to set money aside for the accident, raising your deductable can lower your premium."
Bundling auto insurance policies with a company who offers discounts on the basis of things like owning more than one vehicle, being a home owner or having a high rating as a driver can save you money. This can help save you several hundred dollars annually and avoid the need to pay for each car separately.
Examine your policy every couple of years to check if any major changes have taken place that could result in a better quote. This could be a shift in your commute, the purchase of a car or a move to a different job.
Compare quotes from at least two insurance companies prior to making a decision. This will give you the best chance of finding a great deal that's best for your needs.
Worters says taking steps to improve credit will also save you money on your insurance. Good credit can lower your insurance rates because it shows you are a responsible consumer and can manage your finances.
You can save money in addition to improving your credit score by paying down debts and creating a budget for tracking your expenses. These steps may help reduce your insurance premiums. They can also give you an idea about how much money you are spending on auto insurance. This can help with budgeting.
Take a defensive driving class or sign up for a crash prevention course if you're an excellent driver. This can help you to avoid tickets and other traffic violations, which can have a major impact on your insurance costs.