5 Ways to Pay Less for Car Insurance This Year

If your car insurance bill is one of the biggest expenses each month, don't forget to inquire about discounts and other options that can reduce insurance costs. Many people who have been with one insurance company for a long period of time are eligible for a loyalty discount but don't even ask the company if they qualify for it. If you haven't shopped around for the best quote lately, you could also be missing out on a better deal.

Here are five ways to pay less for car insurance in the upcoming year:

1. Stop buying coverage you don't really need. Take a good look at your current coverage and ask about other options available. Beyond the minimum requirements, what types of coverage could you drop or modify? Most insurance companies offer a range of options and you could be paying for much more than you actually need. Set up a phone call or appointment with an insurance agent to discuss different insurance levels and coverage options.

2. Ask about discounts. Insurance companies have to stay competitive and will work hard to attract and keep your business. Ask about any discounts that you might be eligible for, especially if you've been a customer in good standing for some time. A loyalty discount or even a good driver discount can help to pare down that insurance bill.

3. Stop driving so much. Reducing your annual mileage can translate to a lower premium. Remember that less time on the road simply means a lower risk of an accident. You'll need to verify how many miles you are driving on average each month with your insurance provider so that they can review your account and determine if you're eligible for a lower rate. Each insurance provider has a different review process for determining mileage but disclosing more accurate figures could help to cut those insurance costs.

4. Improve your credit score - and report it. Have you paid off some big credit card balances recently? Has your credit score gone up several points over the past year or so? If so, your insurance company should know about it. Your credit score plays a role in what your final premium ends up being. Ask your car insurance provider to go ahead and run another credit check to see if you qualify for a better rate.

5. Invest in safety features. Insurance companies are likely to reduce your rates when they trust your vehicle is less likely to be vandalized, stolen, or severely damaged in an accident. If you invest in safety features such as anti-theft devices

Sources:

Mint.com - 10 Things You Can Do to Lower your Car Insurance

InsureMe.com - How to Reduce Car Insurance Prices

InsuranceAgents.com - Rules of the Road: Lower Your Auto Insurance