Tips To Save On Car Insurance

Saving money on your auto insurance premium may be a focal point for you today as you try to reduce your monthly expenses. Because auto insurance is a rather large fixed expense in most budgets, it makes sense to look for effective ways to reduce your premium. The good news is that saving on car insurance may be easier to do than you may originally think. In fact, there are multiple options available to help you reduce your auto insurance premium going forward.


Compare Rates

Many drivers exhaustively hunt for the lowest auto insurance rates before setting up coverage. If you took this step several years ago when you first established your current coverage, you may not think that shopping around to request and compare new insurance rates is worth your time. Numerous factors affect insurance rates, including your age, your marital status, the type of car that you drive, your driving history, where you live and more. Each of these factors can change over the years. More than that, the way auto insurance companies analyze them to determine your rates can change. Essentially, the most affordable coverage for you years ago may not be the most affordable coverage today. Get in the habit of annually searching for more affordable rates.


Look for Vehicle Insurance Discounts

Insurance companies each offer different incentives, such as through vehicle insurance discounts and other incentives. Some, for example, have a deductible that decreases each year that you remain accident-free. Others offer a safe driving discount if you do not have accidents on your driving record. Keep in mind that there are dozens of different vehicle insurance discounts offered by various providers. Some providers have limited discounts and very strict qualifications for them. Others have numerous discounts with lenient requirements. When you are shopping for low insurance rates, take time to get a firm quote so that you can see how the various discounts would apply to your situation.


Increase Your Insurance Deductible

Another great way to save money on auto insurance is to adjust your deductible. Some drivers do not realize that they have control over their deductible or that it can be adjusted. Auto insurance providers typically allow drivers to set up coverage with a deductible amount that they select. A $500 deductible is typical, and it can generate a middle-of-the-road premium amount. You can request a higher deductible, such as $750 or $1,000. This will directly reduce the premium. You should analyze your savings account balance to determine a deductible amount that is comfortable for you. In addition, you should get quotes for several deductible amounts so that you can determine which option makes the most sense financially.


Set Up Auto Payments

Saving on car insurance may also be possible based on how you choose to pay your premium. Many people pay a premium in monthly installments. However, you may save money if you set up automatic payments with your provider. You may also qualify for a discount if you pay the entire premium in full rather than in payments. This premium may cover a six to 12-month period in many cases. The discounts for these payment options vary by provider, so ask about this savings option each time you request a quote.


If saving on car insurance is your top priority today, you can see that there are numerous options to consider. In fact, these are only a few of the many ways to potentially reduce your insurance premium. With proper effort, you may be able to shave a substantial chunk of money off of your premium for current and ongoing savings.