How to Get Cheap Car Insurance

7 Ways to Save Money on Car Insurance

While car insurance is a necessity, it doesn’t always have to cost you a fortune. You have no control over some factors, such as handling stereotypes of irrational, irresponsible teenage drivers. However, you can lower your premiums with these money saving tips.

Raise Your Deductible

Your deductible is the amount you will pay out of pocket for repairs or damages. By paying $500 instead of $250, you can decrease your premium by 25 percent. If you choose to pay $1,000 instead of $250, your premium will be even lower. Calculate how much you can afford to pay on your own, should an accident occur, and adjust your deductible to match that amount.

Lower Your Miles

While you may have to reduce your mileage before you call your insurance company to request a deduction on your premium, limiting the amount you drive could save you money. Not only will you be on the road less, thus reducing the risk of an accident or other damage, but you can also save money on fuel and car maintenance. If you carpool or walk to work, or you really don’t have a use for your vehicle other than emergencies or small errands, consider switching to a pay-as-you-drive policy that charges you strictly for the amount of miles you drive.

Pay in Full

While some drivers like the option of monthly payments, these premiums are generally higher than if you were to pay the policy in full up front. Insurance companies feel more comfortable having your money beforehand and they will usually give you a discount if you pay right away. If you are worried that you might be switching insurance companies, know that the companies are required to pro-rate your bill and return your money for the days or months that you will not need their coverage.

Shop Around

Compare auto insurance rates every six months to make sure you’re getting the best rate. Your current company may have the best rates now, but that can change dramatically in six months.

Purchase Safety Systems

Insurance companies feel safer if the vehicles they are covering have alarms, anti-theft devices and security systems. If your car did not come with these devices pre-installed, consider purchasing them separately and installing them yourself. Security systems reduce the risk of theft, thus lowering the chance that you would need to file a claim with the insurance company.

Watch Your Driving

For drivers who have a clean driving history and no accidents, moving violations or tickets, insurance companies often offer generous discounts as a reward. You can save at least 5 percent off your premium, and the discount amount may increase after every few years if you continue to be safe. If you only travel infrequently, mention this to your insurance company because it reduces your risk of getting into accident.

Ask for Academic Discounts

While teenager and student drivers are often stereotyped and given high premiums, some insurance companies are willing to offer discounts for students who maintain a certain grade in school. Savings could be as low as 5 percent or as high as 25 percent for those who have evidence of solid academic achievement.