Car insurance is probably a significant part of your budget. According to the National Association of Insurance Commissioners, Americans pay on average about $800 a year for car insurance-that's over $67 a month. Wouldn't it be nice to reduce that payment by as much as 20 or 30 percent? You can-and it's not as difficult as you might think. Take a look at the following 10 tips from InsWeb.com and start saving money now.1. Shop Around and Compare Rates Regularly
Your circumstances change all the time, and so will the way car insurers view you. If you don't compare rates every once in a while, you'll never know if you could be paying less. According to an independent study, people who compare rates and switch carriers at InsWeb.com save an average of $301* on a six-month policy.
2. Increase Your Deductible
Simply put, the higher your deductible, the lower your premium. The cost of an accident will be that much more expensive, but the savings on your rate could make it well worth it.
3. Insure Your Home and Your Car With the Same Carrier
With a multi-line insurance policy you purchase both your car and homeowners insurance from the same carrier. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.
4. Pay Your Policy in a Lump Sum
Extra administrative fees are often applied to payments when you split your premium into installments (e.g. monthly, quarterly, etc.). Be aware that a monthly fee of even $7 can add up to almost $100 a year.
5. Take Advantage of Good Driver Discounts
Most insurance companies provide discounts for drivers with excellent driving records. In fact, some states require companies to provide these discounts. If you haven't had any accidents or tickets in the last three to five years, you're probably eligible.
6. Don't Overpay Just Because Your Record Isn't Perfect
It's never good to have an at-fault accident or moving violation on your record as all insurance companies will consider you a higher risk. But not all companies look at violations and accidents the same way, and many companies specialize in insuring different types of drivers. If you shop around, you might be surprised at what you find.
7. Look for a Safe Vehicle Car Insurance Discount
Many car insurers offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes. When getting updated car insurance quotes, be sure to indicate such safety features.
8. Pay Less When You Drive Less
Many car insurance companies will offer discounts on vehicles that incur low annual mileage. If your commute has recently changed or you have recently retired and no longer drive your car to work, you might save money by getting an updated quote.
9. Take Advantage of Good Student or Senior Discounts
Because many companies feel conscientious students make conscientious drivers, students currently enrolled in school often receive a discount on car insurance if they can demonstrate good grades. Similarly, providers are also known to value the wisdom of an experienced driver, offering discounts to drivers over 50 as a result.
10. Don't Pay for Coverage You Don't Need
If you don't keep a close eye on the details of your car insurance policy, you could end up paying for things you don't need. For example, you may be a member of a car club that provides roadside assistance yet also pay for towing on your car insurance policy.
How to Find Affordable Car Insurance
