How To Save On Auto Insurance – 4 Tips

by Guest on April 17, 2010

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The following is an article by Travis from Christian Money Mountain.

1. Raise your deductible

A deductible is the amount your responsible to pay before your insurance coverage kicks in. The higher your deductible, the cheaper your annual premium. You may be able to save up to 10% by raising your deductible. There is risk involved when doing this. If you raise your deductible, make sure you have money in savings to cover it if something ever happens. I was going to raise my deductible from $500 to $1,000, but after hearing the difference in rates I kept the lower deductible. I didn’t feel the savings were worth the risk.

2. Shop around

Generally the best time to do this is when your policy is up for renewal, especially if you find your premium has gone up. Premiums among insurance companies vary widely even for the same coverage on the same car. That’s because different companies have different ways pricing coverages and determining rate increases. You can shop around online, over the phone, or through your own insurance agent.

3. Look into discounts

Many insurance companies now over discounts that can result in significant savings. Driving less than a certain number of miles per year may qualify you for a low mileage discount. If you have a clean driving record, you may get a safe driver discount. And if you have different types of insurance through the same company you could qualify for a multipolicy discount.

4. Downgrade your choice of car

Not the most popular choice, may get you the biggest savings. Sports cars and high performance vehicles will cost you a bundle in insurance costs. Also, if you own a new car, the more you’re going to pay. Other cars may be considered safety risks. Certain suv’s are prone to rollovers, which makes them more expensive to insure. So, when buying a car, consider purchasing a low risk or less expensive vehicle.

Photo by Alan Vernon.

To get an auto insurance quote, you can start here.

FTC Disclosure of Material Connection: Some of the links in the post above may be affiliate links. This means if you click on the link and purchase the item, we will receive an affiliate commission. Regardless, we only recommend products or services we use personally and/or believe will add value to readers. Read more here.


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