Money Saving Tips

5 Tips To Help Reduce Your Auto Insurance Premium

All of us are on the constant pursuit of finding some solid ways to keep a few dollars in our pocket, right? Well, when it comes to paying monthly bills like your car insurance, while it’s certainly not wise (or legal) to try and get away with not having any, there are definitely some things that you can do to reduce the amount that you are currently paying on your premium without jeopardizing your coverage.

Is that hard to believe? Just check out these five tips and then discuss them with a customer service agent of your insurance company. By the end of the year, you (and your wallet) will be so glad that you did:

Shop around first (then stick with one company). Sometimes finding a great premium price is simply a matter of checking with several different insurance companies to get a variety of quotes. The truth of the matter is that there tends to be identical packages, at different rates, based on the company that you’re speaking with. However, once you do make a selection, try and get all of your insurance policies (auto, homeowner, business liability, etc.) from that one place. Most companies will give you about a ten percent discount just for doing so.

Don’t pay monthly. Sure, it may seem cheaper to pay a lower amount once a month, but for the convenience of doing so, you usually end up paying a couple of fees that can really add up. For this reason, it really is better to go with paying every six or 12 months. Remember, you can always pull money aside yourself once a month if that will help you to budget out for your biannual or annual payments better.

Drive safely. All State is not the only insurance company that rewards drivers who do not encounter accidents or speeding tickets. Virtually all insurance companies will give their customers some kind of discount (usually around 5 percent) when they are able to remain safe on the roads. Also, if you are someone who doesn’t drive a lot (or far), you might want to mention that to your insurance company as well. The less you drive, the less of a risk there is of you being in an accident. Insurance companies like those odds and so they offer discounts for those kinds of drivers too.

Cut out your collision coverage. Do you have an older vehicle that you are not financing? If so, when you’re in the midst of checking out cheap car insurance quotes, something that you might want to think about is totally eliminating your collision coverage. That is the part of the auto insurance package that pays for any damage that you do to your own car. Removing it will lower your premium significantly.

Don’t forget about your teen driver. If you have a teen who is about to get out on the road, you may be holding your breath a bit because just about everyone knows that a teenager can raise a premium. However, two things that can lower it are if your child is an honor student and if your child took professional driving classes. If that is the case, let your insurance company know. It could earn you a discount of between 5-25 percent.

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