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Everyone is looking to save money these days. Times are hard, and many are learning that every penny counts. One way to find extra money in your budget is to save as much as possible on your car insurance. Lowering your auto insurance is pretty simple and won't require a lot of hassles. Below are a few helpful tips that can reduce the cost of your auto insurance.  

Shop around.
A good time to start shopping around is when your current policy is up for renewal, especially if you find that your premium has gone up. Auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates. Therefore do not take the first offer, instead request at least three different quotes, and compare them before making a decision.

Increase your deductible.
Raising the deductible on auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10-25 percent or more if you increase your deductible from, say, $250, $500 or $1000. If you do this, however, make sure you have the financial resources to handle the larger deductible if the time comes.

Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.  

Multi-family/multi-policy discounts.
If you buy more than one type of insurance through that same company (e.g., auto, life, and homeowner’s) you may get a discount. A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company.

Maintain a Good Credit Record.
Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

What have you done to lower your auto insurance cost?

Sharman Lawson a columnist on Fabulously40, and a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever! Visit her website: [Link Removed]


Sharmanl, Your links have been removed, please consider upgrading to premium membership.



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Member Comments

    • 0 votes vote up vote up

      (華娃娃) ChinaDoll wrote Feb 28, 2009
    • I paid thousand in premium because of my teenage driver - 3 accident within 30 days right after his DL issuance.  I know what you mean since I have P&C background.  

      Yes, quotes! quotes! quotes! And shop every 6 months.  If you find a good premium, even ask for an annual policy to lock in rate.  

      However, do not switch ins company just because of a few bucks.  Why?  If you have long history with one company, they usually give out Accident Forgiveness Discount.  In the long run, you will love this when accident happens.



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    • 0 votes vote up vote up

      Mary Clark wrote Feb 28, 2009
    • We are insurance poor......it’s ridiculous....



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    • 0 votes vote up vote up

      Waxwing wrote Mar 1, 2009
    • Great tips !!

      I just read one from Suze Orman that is great  : if you have two cars in your family, designate on as the low mileage car - you will get a discount on that car’s insurance without increasing the premium on the other car !  We are going to start doing that.

      If you ANY affiliations whatsoever, see if they work with an insurance company for a lower rate. For example - I recently found out that the alumni from the college I attended get an additional 15 % off from insurance policies ! We were quoted $1000 less for our two cars, home, and umbrella policy. That is a savings of  about $80 a month ! And the company is rated triple A.  

      You also get discounts for a good FICO score, good driving record and whether or not you are a member of AAA.



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    • 0 votes vote up vote up

      Waxwing wrote Mar 3, 2009
    • Maryclark, I am curious what you mean by your comment....we as a society are insurance poor ? Insurance is so expensive that it takes up a huge chunk of the budget or we don’t have enough and are underinsured ?

      It is an interesting comment.



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