Ten Ways to Save on Auto Insurance

#1 Shop Around to Save on Auto Insurance!
Always get at least three quotes before you commit to a specific company. Not all companies’ rates will be the same, and we’re talking hundreds of dollars so make sure you shop around to save on auto insurance!

#2 Get a quote BEFORE you Buy the New Car
The car you choose will have a huge impact on your insurance rate. Most people know the key to cutting costs is to stay away from the new, expensive and sporty models. Even similar practical and safe cars can look very different under the insurance companies’ “risk” microscope. So if you have a couple of cars in mind, use an online insurance comparison site like InsWeb.com to compare free insurance quotes online for different models before you buy.

#3 Hike up the Deductible
This is the quickest and most surefire way to save on auto insurance costs. According to National Association of Insurance Carriers (NAIC), going from a $250 to a $1000 deductible can save you up to 40% on the collision portion of your policy.

#4 Don’t Over-Insure Older Cars
If you’re paying for comprehensive and collision coverage on an older car, you may be paying more for insurance than the car is actually worth.
The NAIC suggests the following formula to determine if you’re overpaying:
Combine the amount you’re paying for comprehensive and collision coverage and multiply that number by ten. If your car is worth less than that, cut cut cut. It could save you a bundle on auto insurance.

#5 Care About your Credit
Not paying your bills on time could cost you big time. Recent studies have shown a correlation between credit history and a driver’s level of risk to insurance companies. So it’s no surprise that bad credit could increase your car insurance rate by 50% (NAIC).

#6 Drive Less, Pay Less
A lot of insurance companies will give a discount to drivers who have a lower than average annual mileage. If you have a short commute, participate in a carpool or do anything else that translates into driving fewer miles, a discount may be in store for you.

#7 Ask About Group Insurance Discounts When Working on Auto Insurance Savings.
You could be part of an organization that gets discounts and not even know it! Members of certain organizations and professions (teachers, veterans, engineers) are often given group discounts. Give your company a call and ask for a list of the groups they offer discounts to and save save save!

#8 Special Discounts
Special safety features on your car, good grades on your young driver’s report card and even reaching senior citizen status could land you big time savings on auto insurance.

#9 Keep Cover
Even if it’s short, a lapse in your coverage could disqualify you from getting discounts. Don’t skip premium payments and if you're switching insurers, don’t cancel your old policy before the new one takes effect.

#10 Pay up Front
Breaking your premium into monthly installments can get expensive. Most carriers charge administrative fees to consumers who pay in installments. So when looking to save on auto insurance, pay in a lump sum.