Five Ways to Save Money on Car Insurance

Tamsen Butler
Save money on car insurance.
Save money on car insurance.

There are five ways to save money on car insurance easily. Are you using any of these five tactics to save some money?

Five Ways to Save Money on Car Insurance

Car insurance is required in most states, but beyond this legal requirement, adequate auto insurance is a big part of personal financial management. Without adequate car insurance, you leave yourself vulnerable to huge expenses in the event of an accident.

Save money on this necessary expense by making sure you aren't paying too much for your coverage.

One: Comparison Shop

You can save quite a bit of money if you take the time to compare the products and rates offered by a wide variety of insurance companies. You can accomplish this on your own or you can use the services of an auto insurance broker. Either way, comparison shopping is an important step to take if you want to save money on the cost of your policy.

Your current insurer may indeed be the best deal, particularly if you already have other policies with the company such as homeowner's insurance. Don't assume your current policy is the best deal without first doing some searching on your own.

Two: Mention Car Safety Features

Insurance companies lower the cost of coverage when the car has certain safety features. Your insurer may not be aware of all the safety features on your vehicle, especially if you added the safety features after you purchased the vehicle. For example, a car alarm that you install can save quite a bit of money on your premiums.

Make sure your insurance company is aware of the safety features on your vehicle including daytime running lights, side air bags and other features which may lower the cost. Be aware that some vehicles, particularly flashy sports cars, will always have higher premiums than cars which are considered to have excellent safety records.

Three: Get Educated

Good student discounts can save quite a bit of money on car insurance premiums. If you, or anyone else covered under your auto insurance policy, attends school and has a high grade point average, contact your insurer to find out if you qualify for a discount.

Other classes, such as safety driving courses, can also lower the cost of your policy. Contact your insurer to find out what classes you can attend to get your premium costs lowered.

Four: Maintain Credit

Some insurance companies periodically review customer's credit reports and then base the policy costs partially on the information contained within the report. Many insurers also do an initial review when a new customer requests a policy.

There are plenty of reasons why you should maintain good credit, but saving money on your car insurance can be one of the perks. Pay your bills on time, do not obtain more credit than you can handle, and keep your debt balances low.

Five: Revise Coverage

You may not need all of the auto insurance coverage you currently have. Review your existing policy and see if there are adjustments you can make that will lower the cost of your insurance. For example, if you drive your car infrequently or for only short mileage trips, contact your insurer to find out if you qualify for a low mileage discount.

Raising your deductible can also save money on insurance costs; but, it can lead to higher expenses in the event of a claim. Closely examine your financial situation before making changes to your existing account.

Adequate Coverage

Use these five ways to save money on car insurance to keep more money in your wallet; but, ensure that you have adequate coverage. It is nice to save money on your car insurance, but you don't want to scrimp so much on coverage that you wind up in financial peril if the time comes to make an insurance claim.

Five Ways to Save Money on Car Insurance