Buy a car wisely. Certain vehicles, such as those with a high propensity for theft, sports cars and red cars, cost more money to insure. These cars have higher premiums because insurance companies have determined that owners who drive such cars are statistically more likely to make insurance claims.
On the other hand, if you buy a safe car with anti-theft features and safety features, you can lower your insurance rates.
Understand how insurance works and what factors affect premiums. For example, car insurers will give you a discount if you drive less–typically, less than 9,000 miles per year. If you can, cut down on driving one of your cars to get a discount on that car. Insurance companies also charge less to insure cars in rural areas generally than in cities, so if you live in a rural residence for part of the year, make sure your insurer knows that. By understanding the demographic factors your insurer uses to price your policy, you may be able to save on your premiums. A simple phone call to an insurance company to ask about these factors can give you a wealth of insight into whether there’s anything you can change in your behavior to lower your rates.
Ask for discounts. Many insurers offer discounts for being a good student, for taking a defensive driving class or even for working for a company they have a relationship with. Ask your insurance company for a list of discounts offered to see if you qualify. You can also ask your human resources department at work if there are any deals on group auto insurance coverage.
Cut unnecessary coverage. If you have an older car that isn’t worth much, collision coverage, which pays to repair your vehicle if you cause an accident, and comprehensive coverage, which pays to repair or replace your car if it is stolen or damaged by something other than an accident, may not be worth it. Likewise, if you have medical insurance and don’t live in one of the 12 no fault states, you may be able to eliminate personal injury protection.
Raise your deductible. The deductible is the amount of money you have to pay before your insurance kicks in. This means if you have a $500 deductible and a $1000 claim, your insurance company will pay $500 and you will pay $500. If you have a higher deductible, you’ll have lower car insurance premiums but more risk.
Shop around. You can look for different rates from different insurance companies by getting instant auto quotes online or from an insurance broker. However, you’ll want to make sure any company you buy from is reliable. Use AM Best Credit Ratings and Standard and Poor Credit ratings to verify that the company is a quality company before you buy your insurance from them.