The best way to save money on car insurance is to not have to pay any at all which is only an option if you live in a major metropolitan area where owning a car is not a necessity. If you do not have access to mass public transportation then you likely have a car and with a car comes the responsiblilty of car insurance. It is very easy to have a car insurance policy in place and then forget about it. Perhaps it is time to expend some mental energy and take a look at your car insurance policy to ensure you are not paying too much. Keep in mind that before you make adjustments to your current car insurance policy you should research your states minimum insurance requirements.
Drop coverage you don’t need. If you bought a new carseveral years ago, consider dropping collision or comprehensive coverage on your vehicle. When financing a new car there are certain insurance requirements that you need to maintain and in many cases we forget about the policy coverage and continue paying higher premiums long after it is necessary. Assess your car’s current value and adjust your policy accordingly.
Own a lower-risk vehicle. Certain vehicles attract thieves, are more expensive to repair or sport less than great safety records. If you own one of these models you will pay a higher premium. Before purchasing a new vehicle consider researching the model’s risk levels to ensure you are not setting yourself up for higher insurance payments.
Request a higher deductible. If you are looking to lower your insurance bill, raise your deductible. If you are in an accident the amount of money that comes out of your pocket before the insurance kicks in will increase; in return your will pay less per year for car insurance.
Research available discounts. Look into discounts available for teen drivers who are insured under their parents policy. If your teen maintains good grades and passes an educational driving course they may qualify for reduced rates. You may also find discounts available for more experienced drivers if they are older than 50 or 55, retired, been accident free for three years or even as a reward for being a longtime customer.
Combine policies. If you have more than one vehicle, own trailers or recreational vehicles or have a homeowners or life insurance policy you may qualify for reduced rates by having all of your insurance through one company.
Carpool or limit your driving. You may qualify for a reduced rate if you drive less than the “average” number of miles per year. Contact your insurance carrier to see if you limited mileage will reduce your premiums.