Ten Ways to Save Money on Car Insurance

What is something most people need but don't want, pay for and rarely us? If you said car insurance, you got it right. There's just no way around it, we have to have car insurance but what we don't need to do is pay more than we have to for that insurance. There are ways to cut the cost of auto insurance and still have the coverage you need.

Shop for better rates. If you look at online sites that offer insurance quotes, note that the first thing asked is your zip code. Rates vary from zip code to zip code and this year's rates may not be the same as last year. Decide exactly the coverage you need and get rates from several companies. Don't make coverage changes from one company to the next. Keep everything the same to get an accurate quote. The National Association of Insurance Commissioners suggests reviewing policies and rates every year.

Keep it together. Insure all vehicles with one company for a multiple vehicle discount. Ask your insurance agent if boats and motorcycles will also apply toward a multiple vehicle discount. Some companies offer a 20 per cent or more discount for multiple vehicles. Many companies offer an additional discount when you insure your house or your life with them.

More discounts. Many insurers offer discounts for good students, keeping your policy with them or remain accident free for a certain number of years, retire, take a defensive driving course, or belong to certain organizations. Each company has a list of organization that qualify for discounts so if you belong to any groups or associations, ask your agent if yours is on their list.

Keep it down. Speeding tickets can increase your rates substantially for three years or longer. Insurance companies assume that if you speed you're an unsafe driver. If you're an unsafe driver you will eventually have an accident and file a claim that they will have to pay. To get a head start on their payout, your premiums are going to go up for each speeding ticket you get.

Pay it off. Pay car insurance premiums yearly, if possible. Monthly payments have a fee attached. If the monthly fee is $3.50, that amounts to $42 a year savings is you pay yearly. Ask if your company offers a discount for electronic transfers from your checking account.

Monitor your credit. Some states allow insurance companies to charge higher premiums if a person has a bad credit rating. The belief is that there is some relation between credit rating and the expected number of claims that will be filed. If this is the case in your state, work on increasing your credit rating. When your credit rating has improved, talk to your insurance agent about an adjustment to your premiums.

Increase your deductible. Comprehensive and collision coverage have deductibles, what you pay first before the insurance kicks in. A $250 deductible sounds good because that's what you would pay before the insurance picked up the balance but it raises your premium. Increasing your deductible to %500 or $1000 will lower premiums considerably. The downside is that in case of an accident, you have to come up with that $500 or $1000.

Don't pay for what you don't need. If your car is 8-10 years old, so you really need comprehensive and collision coverage? Check to see the cost for each and discuss it with your agent. You may be smarter to carry only the coverage that your state requires. Yearly premiums on an older car may be more than the car is worth.

Don't buy that car. Some cars just demand higher premiums. Cars that are like candy to car thieves and those sporty little cars that go fast will cost you higher premiums. Premiums for a Ford Shelby GT500will be almost $2200 a year, A H2 Hummer about $1900, and a Land Rover Range Rover just over $1600. Compare those rates to a Kia Sportage for $850, a Honda Accord for $950, or a Dodge Grand Caravan for about $960. Pay less for the car, pay less for car insurance.

Equipment. Air bags can get you a discount on the personal injury part of your car insurance policy. You can cut the collision part of your premium a bit by having anti-lock brakes. An anti-theft device can reduce premiums even more, in some cases up to 25 per cent on comprehensive coverage. Ask your agent if daytime running lights will reduce your premiums further.

There are so many factors involved in auto insurance cost so you really have to do your homework. Give yourself time to get the policy quotes and still have time to change insurance companies so you're not without coverage because that will cost you.

Sources:
http://20somethingfinance.com/how-to-save-on-auto-insurance/
http://www.geico.com/information/discounts/car-insurance-discounts/
http://www.autoblog.com/gallery/top-10-most-expensive-2009-vehicles-to-insure#4
http://www.insure.com/car-insurance/most-least-expensive-2009.html
http://www.allstate.com/auto-insurance/auto-insurance-discounts.aspx
http://www.insurance.com/auto-insurance/saving-money/23-tips-for-saving-on-auto-insurance.aspx