How We Slashed $1,600 from Our Car Insurance Premium

One of the simple ways that I save money is by reviewing our car insurance policies every six months. In a family with teens and multiple cars, many revolving factors go into the cost of a car insurance premium. Here's how two calls trimmed more than $1,600 from our bill.

Dropped coverage for adult children who have moved out.
Once a child moves out of the house, there isn't any reason to keep them on the policy anymore. When our youngest son graduated from college last winter and entered the military, I called up our insurance agent to make changes to our policy. We dropped our son from our policy for a $54/month savings on the truck he once drove and another $8/month on the other vehicles we own. Total savings: $744 per year.

Switched to a "collectors" rate for our classic car.
We have my dad's old 1950 Hudson that sees less than 25 miles of actual driving a year. We had been paying $30/month to insure it until I thought to ask our agent about a low mileage rate for collectible cars. He found us a policy that dropped its portion of our total premium to $96 a year. Total yearly savings: $264.

Dropped the comprehensive coverage.
All of our cars have been paid off for years, which means that a full coverage policy really isn't necessary. We dropped comprehensive on our Volkswagen Microbus and Super Beetle after deciding that it was a waste of money considering their blue book values. Total savings: $350 per year.

Garaged or sold unused cars.
With only two drivers in our house, my husband and I examined just how many cars we needed. Some, like the Hudson and my husband's first car (the Microbus) we can't part with for sentimental reasons. The family car, however, was no longer needed. By moving the bus into storage and selling our family car, we dropped our insurance rate yet again. Savings: $320 per year.

Ditched the monthly payment program.
For many, it's tempting to pay car insurance premiums on a monthly basis which includes a monthly "processing fee." Now that our annual car insurance premium has dropped to less than $500, I've switched back to the standard, one-time billing. Total savings: $84 per year.

While not all families will see this kind of savings when reviewing their policies, it's worth remembering that any kind of discount will not happen on its own. By reviewing your policy regularly and asking your agent for ways to lower your rates, saving money on car insurance just isn't that hard to do.