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Tips to Save on Car Insurance

February 21st, 2011 at 11:13 am

Everyone is looking for ways to save money and cut back on expenses. Many times the way to save is right under their nose. The solution may be as simple as looking at what you already have, and ways to reduce those cost. There are many ways or categories in spending that individuals can save money. One way to save is car insurance. Getting less expensive auto insurance can be as simple as making a few changes. Below are a few helpful tips that can reduce the cost of your auto insurance.

Shop around.
Before your current insurance policy expires start shopping for a new one. This is true especially if your premium has gone up. Car insurance coverage on the same car can differ widely between different insurers. Therefore, do not go with the first quote. Instead get at least three quotes from three different companies, and compare them before making a decision.

Have good credit.
Having good credit makes all the difference in the world in getting the best rate. Insurance companies check credit information to determine the cost of an auto insurance policy. Therefore, pay your bills on time, don't obtain more credit than you need, and keep your credit balances as low as possible. Also, check your credit report on a yearly basis. Have any errors corrected, so that your credit record remains accurate. Good credit saves you money.

Drive less.
Insurance companies will give you a discount if you drive less than a certain number of miles in a year. Usually that mileage number is 7,500 a year. If you work from home, ask for the low-mileage discount. Think outside the box to save on car insurance. If you commute to work, it might be cheaper to take public transportation. Consider car pooling to save on gas and insurance cost.

Raise deductibles.
Raising the deductible on car insurance is an excellent way to cut the cost of the policy. By increasing your deductible from $250 to $500 or $1,000, you can trim down your annual premium by 10-25 percent or more. However, if you raise your deductible, make sure you have the financial resources to handle the bigger deductible if or when the time comes.

Multi-policy discounts.
If you purchase additional types of insurance through the same insurance company (i.e., auto, life, and homeowner's) you may qualify for a discount. Also, if you have multiple cars under one policy, you may be entitled to a discount.

Military savings.
Are you in the military or have you been in the past? USAA.com is a great company to save on car insurance. Most insurance companies cannot beat their low prices and excellent customer service. If you’ve never been in the military, immediate family members of veterans can also join USAA. Call USAA, compare prices, and save a substantial amount of money on car, home, and life insurance. Also, with USAA save on loans and credit cards.

3 Responses to “Tips to Save on Car Insurance”

  1. Jerry Says:

    These are all good tips... I know that shopping around for insurance periodically, as well as looking for discounts, really does lead to savings from personal experience. It makes a difference!
    Jerry

  2. Sharmanl Says:

    Thanks Jerry. Aren't you in the military? Are you with USAA?

  3. Jerry Says:

    Sorry, Sharmani, I didn't see this response! I am a veteran, but I am not currently in the military. I served in the Navy as a hospital corpsman with the Marine Corps. Yes, we use USAA for both insurance and banking and have been really pleased with them, especially since we are living overseas. They are very customer friendly, and their flexible policies lead to a much easier time when you're not on home soil.
    Jerry

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