If you think you're overpaying for auto insurance, you may be right. Typically, if you shop around, you can find better rates than you are currently paying for your insurance premium. There are ways to save by getting discounts. Here are a few that you should be making the most of.
1. Multi-policy Discounts
If you are a homeowner, you will need insurance coverage on your home or condo, so shop the same company to get premium rates for both your auto and home policies. Purchasing more than one policy from a carrier will create a discount on both, so take advantage of it. Don't own a home? You can buy renters insurance, which covers the contents of your apartment or rental home. This will also trigger a multi-policy discount.
2. Shop Around
The only way to get and keep the lowest insurance rate is to do annual car insurance comparisons, so you can make sure that the
car insurance quotes are lowest with your current company.
3. Install Safety Devices
Insurance carriers give discounts for safer cars. Do you have a car alarm? Tracking device on your car to find it if it's stolen? Anti-lock brakes, airbags or automatic seat belts? These are all factors that go into calculating your premium. Having safety devices also protects your car from being stolen or vandalized, so you win both ways.
4. Safe Drivers and Good Students
Insurance companies give discounts for safe drivers, and if you take a course you will get better rates. Be prepared to give the dates of the course you participated in. If you are adding a young driver to your policy, they will also receive a discount for having taken driver's education classes. If they qualify as a "good student" with higher grades, they benefit as well.
5. Lower Mileage
The number of miles you drive every year impacts your auto insurance premium. Driving for business purposes, which includes commuting to work, will increase that amount. It is less expensive to insure cars which are counted as "pleasure use" rather than business. Give accurate information when applying, so that you are adequately covered for business driving.
6. Increased Deductible
One quick way to reduce your insurance premium cost is to shop for a policy with a higher deductible. If you currently have a deductible of $250 for example, consider switching that to a $500 deductible. Although you are responsible to come up with this money up front if you do have a loss, it can have a substantial impact on the amount of your premium. Combine this with other discounts and it can make a huge difference in saving money.
