1. Choose a higher deductibleA deductible is the amount you pay per claim before your insurer will pay the rest of the balance for repairs or replacements. People tend to purchase policies with lower deductibles, such as $250 or $500. However, the higher your deductible, the lower your monthly premiums. Safe drivers may want to consider a higher deductible because it will save them money each month. On the other hand, drivers who find themselves filing more than their fair share of claims may opt to maintain the lower deductible. A good rule of thumb is to choose a deductible with the highest amount you are able to afford; this method allows for monthly savings, yet doesn’t break the bank if an accident should occur.2. Purchase a car with a lower insurance rateMany consumers get caught up in the excitement of purchasing a new car. Though it is a very thrilling time, you must also consider the cost of insurance on top of your monthly car loan payment. New cars will have higher premiums than used cars. Also, sports cars will have higher premiums than their more practical relatives. If auto insurance premiums are a concern to you, speak with your local agent before settling on a final car decision.
3. Drive safelyThis might sound obvious, but it’s still an important part of saving money on your premium. Safe drivers, with little to no accidents and tickets, will always pay less than drivers who consistently need to file claims. Just one at-fault accident can affect your premium for years to come. Apart from saving money, driving safely is a good habit for your own health and the health of those around you.4. Reduce coverage on older vehiclesOlder cars do not require the same amount of coverage as a newer car. Be sure to maintain at least the minimum coverage required by state law, but feel free to consider dropping any policy extras like collision coverage. If you have a 15 year old car that is worth $1,000 and your deductible is $750, your coverage may not be worth what you’ve been paying each month.5. Ask about discountsThere are many auto insurance discounts that you may not know about. Ask your local agent if you qualify for any of the following:
Good driver discount: for drivers with a clean driving record
Safe driver discount: for drivers who have passed an accredited driver safety class
Multi-vehicle discount: for drivers who insure multiple vehicles with the same provider
Multi-line discount: for drivers who also insure their home with the same provider
Good student discount: for students with a B average or higher
Safe vehicle discount: for vehicles with extra safety features
Retiree discount: for drivers who have reached a certain age, usually over 55
Away-at-school discount: for drivers who also insure their college students
6. Consult your independent insurance agentIndependent agents are able to compare prices across many insurance providers. Along with a quote, you’ll also want more information about each provider, such as the efficiency of customer service and how quickly they handle each claim.