How to Save Money on Auto Insurance

There are a number of ways to reduce your auto insurance premiums. You might like to consider some of the suggestions below:

• Increase Your Deductible

  Choosing a higher deductible will result in a significantly lower premium. You should choose the highest deductible you believe you could afford at any point in time.

• Cover the Small Claims Yourself

  Paying a small claim yourself may be cheaper than suffering a rate increase in the future. For example, if you incur $600 in damage and your deductible is $500, you are probably better off paying the additional $100 (above your deductible) as well, rather than filing a claim.

• Pay Your Premium in Full Instead of Monthly

  Almost all auto insurance policies are for a six-month period. Paying the full six-month premium at the beginning of the policy period rather than monthly will result in considerable savings because you avoid hefty installment fees.

• Never Let Your Policy Lapse

  Auto insurance is required by state law; therefore if you ever let your policy lapse, the insurance company will deem you to be irresponsible and a higher insurance risk. As a result you will likely have to pay a much higher premium to obtain a new policy, even if you change your insurance company.

• Always Ask for a Discount

  Insurance companies offer a range of discounts to motorists; however you may miss out on certain discounts if you don’t ask for them. You may be surprised at just how may discounts you qualify for. So don’t be afraid to ask – it could save you money.

• Consider Dropping or Reducing Your Comprehensive and Collision Coverage

  By the time your car is 8-10 years old, your car may be worth so little that it is not worth continuing to pay for comprehensive and collision coverage. Consider reducing or dropping this coverage altogether and "self-insure".

• Lower Your Annual Mileage

  The number of miles you drive each year affects the cost of your premium. Making a significant reduction in your mileage you can lower your insurance costs. Consider using public transport, joining a car pool, or even living closer to work to reduce your mileage.

• Avoid Owning a Vehicle that is More Likely to be Stolen

  Cars that are more likely to be stolen attract a higher premium for comprehensive coverage, so buying a car that’s less popular with thieves can lower your insurance costs.

• Don’t Speed

  Traffic tickets are detrimental to your auto insurance rate and can affect your premium for up to three years.

• Go Paperless

  Some insurance companies now offer discounts for choosing paperless billing and service options, allowing you to sign your documents online. This avoids administrative costs and postage charges, and has the added benefit of saving you time and effort.

• Shop Around at Least Once Every 12 Months

  Ever noticed that you auto insurance premium seems to increase each year, despite staying loyal to the same company? If it’s been a while since you last shopped around for auto insurance, there is a good chance you are paying more than you need to. You may even be missing out on new coverage benefits and discounts. By shopping around you can determine if the rate you’re paying is still competitive – and if not, it’s probably time to switch and save.