How can I save money on my auto insurance?

There are many factors that influence the price you pay for your car insurance including type of car, insurance company, driving record and many more.  Here are some ideas for lowering your premium.  Always consult with your agent before making any changes to your policy.

Higher Deductibles – Your deductible is the amount of money you pay up front before your insurance policy takes affect.  So by raising your deductibles you are taking more responsibility thereby putting your insurance company on the hook for less so they charge you less.  Speak with your agent about raising your deductibles but remember you have to come up with this money in the event of an accident so don’t go too high.

Lower Coverages on Older Cars

If you own an older car that may not be worth much anymore than you may want to consider dropping the comprehensive and collision coverages.  It does not make sense to pay a $500 deductible on a car that’s only worth $600.  You’re going to pay more every month and in the event of an accident the insurance company will only be covering $100 of the damage.  Just remember if you drop these coverages your policy will not repair or replace your vehicle.

Good Credit

Many people are unaware of the fact that their credit score plays a big role in determining their auto insurance premiums.  It has been proven that drivers with good credit ratings are involved in less accidents than those with poor credit.  If you want to lower your insurance you should work on improving your credit score.  There are many resources available to help you with your credit.

Bundle Your Home and Auto

Most major insurance companies will give you a considerable discount on your insurance premiums when you combine your home and auto insurance.  Some companies will give additional discounts for insuring other vehicles such as boats, motorcycles and atv’s.  You may also be eligible for discounts if you have more than one car with the same insurer.

Compare Quotes

When you are looking for insurance be sure to get quotes from multiple insurance companies.  Each company specializes in insuring different classes of people so one may be cheaper for older drivers while another is cheaper for student drivers.

When all else fails just ask your agent about available discounts.  Different insurance companies offer different discounts but some of the available discounts out there are:

• Good Student Discount
• Retired Discount
• Military Discount
• Occupational Discount (nurses, teachers, firefighters, etc. check with your agent)
• Employer Discount (you may get a discount because of where you work)
• Loyalty Discount
• Many, many more….

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