Different Ways to Save Money on Car Insurance

There are many ways to save on car insurance. Use the following tips to help keep more money in your pocket.

Comparison Shop

Consult multiple insurance companies to get quotes before purchasing insurance. You can get quotes over the phone or on the Internet. Compare the numbers carefully. Don't go for the cheapest just because it's the cheapest. Consider other factors such as the company's reputation and what discounts it offers. Read reviews about each company to find out what customers think of a particular company.

Shed Excess Coverage

You can probably drop comprehensive and collision insurance for an older car. This coverage can cost more than the car itself. It's probably not worth paying excess coverage on a car that is worth less than $2,000. Even for a newer car, you might want to reduce your coverage as your car ages.

Bundle Your Insurance

Talk to your homeowners insurance company to see if they offer a discount for bundling policies. If they do, you can often save on both your car and home insurance. Many prominent insurance agencies provide insurance for many different types of assets. Opening multiple insurance policies with one insurance company will usually earn some sort of discount. Shop around and compare prices and bundling discounts with several insurance companies to find the best deals.

Drive Safely

If your driving record is clean, your costs will stay low. Any moving violations will add to your premiums. Accidents also increase your premiums. Driving safely over a long period of time will reduce your insurance costs.

Search for Discounts

Find out what discounts your policy is eligible for. You might be able to get a discount by taking a driving class or by remaining a longtime and loyal customer. Find out about these discounts when you do your comparison shopping. Each company may have different discounts available.

Increase Your Deductible

The easiest way to reduce your premium is to increase your deductible. This means you will have to pay more out of pocket if you need to file a claim. Increasing your deductible will dramatically reduce your monthly costs. Don't increase your deductible if you do not have the money saved to cover the upfront costs.

Choose Your Car Carefully

Realize that the type of car you drive impacts your insurance costs. Certain cars are more costly to repair and the insurance companies know this. Models which are frequently stolen are also more expensive to insure. A flashy car can cost more than it's worth.

Check Your Credit Score

As ironic as it might seem, insurance companies will offer bigger discounts to individuals with higher credit scores. Although it may not be possible to raise your credit score before applying for an insurance policy, check into the status of your credit score. If there are any discrepancies, fix them before purchasing an insurance policy. This tip is also useful for long-term planning and as incentive for keeping a high credit score. Once your credit score is in a good state, you can search around for a better deal on car insurance.

Check the Accuracy of Your Information in Your Current Policy

If you have not called in to check into the status of your policy in a while, it is a good idea to do so. Many people forget to inform their insurance company when major life events occur. If you recently got married or no longer need to insure a child or dependent, this will equal discounts and reductions on your car insurance. In addition, even the slightest of mistakes, such as the year, make or model of a vehicle can have an impact on the price of your policy.

You're not permanently locked into paying the same premium. With a little work, you can save money on your car insurance.