For most people, auto insurance is the single largest insurance expense after health insurance. The rates are high and keep climbing, at least in appearance. You can save money on your car insurance premiums by following these easy-to-implement steps.
<b>1. Shop around.</b> Yes, it pays to shop around and compare. Regulatory changes at the state level may have encouraged new companies to enter the market, thereby increasing competition and reducing prices for consumers.
<b>2. Raise your deductible.</b> A deductible of $200 seems wise until you learn that the cost of a deductible at that level can skyrocket your rates. Consider a deductible as high as $1,000 to save on premiums. You can always fix minor problems yourself.
<b>3. Drop Collision.</b> If your automobile is worth less than two or three thousand dollars, consider dropping the collision altogether. Of course, you won't get anything from your insurer if your car is totaled, but the savings you get from dropping the collision can be used as a down payment for your next car.
<b>4. Look for discounts.</b> If your car has certain safety features, make sure your insurer is aware of them. Older cars, for the most part, don't have airbags, but if you have a model that does have airbags, you'll save money on your insurance.
<b>5. Business deduction.</b> If you drive your car for business, some of your insurance costs may be deductible. Conversely, your rates may increase if your insurer knows that you use your car more for business than pleasure.
<b>6. Combine policies.</b> Buy your home, auto and life insurance policies from the same broker and you could save on your premiums. Some insurance companies reward policyholders for “one-stop shopping” for all of their insurance needs from one company.
<b>7. Consider before buying.</b> The Porsche Boxster might be your ideal car, but it could also significantly increase your insurance premiums. Perhaps a less sporty model would be ideal.
<b>8. Driving lessons.</b> You may have taken a driving course and your insurance company did not take this into account when determining your premium. Let them know you're a safe driver!
<b>9. Points removed.</b> If you have had moving violations that have been reported to your insurance company, make sure your insurer adjusts your premium downwards if several years have passed since the event. You could pay a higher premium than you deserve.
<b>10. Check your policy.</b> If the insurer gets the wrong address, city or zip code on your policy, you could end up paying more than you should.
Reducing your auto insurance costs shouldn't be an impossible task. By following these steps, you should save money the next time your policy is reviewed.
