10 Easy Ways to save on Auto Insurance

Most Americans spend thousands a year on car insurance, and don’t realize they can save a huge amount of money every year just by following some simple tips. Below are the top 10 ways you can reduce you car insurance bill every year:

  •   Shop around. Insurance prices vary dramatically from one insurance company to another. It used to be very time consuming to shop around from company to company. However, with the internet this has become much easier. Use Insurance.com to get offers from multiple insurance companies instantly free, with absolutely no obligation. Why not compare?
  • Buy insurance from the same company for home, life, and auto. Once you have decided which insurance company is giving you the best deal, add all your cars onto this one policy since you will get a multiple car discount. Then ask about getting your homeowners or renters insurance added, since most insurance companies will also give you a discount on any other insurance you buy from them since you are already a customer. This also makes it easier since you only have one company and one bill to deal with.
  •  Get the right deductible amount. Make your deductibles high, at least $500. You probably would not file a claim for less than $500, since whatever money you received for the claim you would have to pay back in increased rates the following year. The higher the deductible, the lower the insurance rate. Remember, this is only if you are at fault for the accident. If somebody else is at fault, you will not pay any deductible.
  •  Get the right amount of insurance based on how you drive. Take the train, bus, or carpool to work? Make sure you make it clear to your insurance company exactly how you use your car. There is a huge discount if you only use your car for leisure rather than business or commuting to and from work
  •  Make sure you have a Good Credit Score. Most insurance companies will use your credit score as a factor in figuring out you insurance rates. Use our Credit Score Tips page or get your Free Credit Report and make sure you score is correct and as high as possible. Insurance companies assume that a low credit score will mean more risk, since people who pay their bills on time are usually better drivers. The higher the risk, the higher the insurance rate.
  • Collision and Comprehensive Insurance. How old is your car? Don’t pay for collision insurance if you don’t need it. Compare the cost of the insurance with the value of your car and the deductible amount. Comprehensive covers your vehicle for anything that might happen to it. With either of these policies, we recommend having a high deductible to lower your insurance costs. Remember, insurance works best for unexpected expensive events, you should cover the minor events.
  •  Teenager and Under 25 – If you are under 25, its usually cheaper to have your parents own your car with you being a driver, rather than the car being directly in your name. Have your parents register the car and buy the insurance, and have you listed as a driver. For teenagers, make sure you tell the insurance company your child gets good grades for another discount.
  • Other discounts – Ask the insurance company if any other discounts are available. Many times they wont tell you unless you ask. Examples include over 50, AAA, college educated, etc.
  •  Fight every ticket if it involves points on your license. Getting a ticket is almost unavoidable these days. However, if you get pulled over, be as nice as possible to the police officer and see if you can get away with a just a warning. If not, see if you can get them to write you a ticket for a non-moving violation, such as no seat belt or a bad license plate cover. The reason is that the town gets the same money either way, however by not getting points on your license you will save a huge amount of money on your auto insurance rates. If you still get a moving violation ticket, take the time and fight it in court. Most times if you just show up, the judge will lower the ticket to only a fine and not a moving violation. If its a really large ticket, it might even make sense to get a lawyer involved since it will save you money to pay the lawyer vs. much higher insurance rates in the future years.
  •  Anti theft device vs. discount amount. If you live in certain areas, you can get a discount for having an anti-theft device installed on your vehicle. Compare the savings on your insurance policy with an anti-theft device with the cost of installing it, it might turn out to pay for itself in the first year!

One more bonus tip regarding car rental insurance. If you have a regular insurance policy and a regular credit card, you usually don’t have to bother buying additional car insurance from the rental agency. Your credit card usually covers damages with a deductible, and your auto insurance covers you for any liability. Check with your credit card and insurance company to make sure, but this can save you over $15 a day in useless insurance coverage you already have it. Since the car agency makes money on this, they will push it on you at the counter and scare. Know what you are already covered before spending your money on this.

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