Auto insurance is an important protection that is required by state law. It can also be a costly expense, especially if you have teenage drivers on your policy. However, there are some steps you can take to try to save on your auto insurance costs.
Combine your policies
Insurance companies typically offer discounts when you bundle more than one policy. Find out how your insurance costs may change if you combine your auto, home, life and other policies through one company. Remember that combining your policies may make it more complicated to switch companies later, so you may want to shop around before making a decision.
Shop around for a lower price
Getting quotes from different insurance policies can be a good way to find lower premiums. Most companies can offer a quote over the phone or online, but it's important that you compare the same information. Be sure that you are requesting the same deductible and level of coverage at each company and ask which discounts have been applied to create the quote.
Choose new cars carefully
Adding or replacing a car on your insurance policy will change your premiums. When shopping for a new car, ask your insurance agent for a quote on how much your policy might change. You should be able to get an estimate for the change if you know the make, model and year of the different cars you are considering.
Ask about additional discounts
Insurance companies may offer discounts for more than safe driving. There may be discounts based on age, retirement status or the length of time you've held the policy. Students may qualify for discounts if they earn good grades or if they have taken approved driver's education classes.
Carpool to drive less
Most auto insurance companies have rates that are based on your annual mileage. Driving your car less usually lets you earn a lower insurance rate. You can cut your annual mileage by carpooling to work a few days a week. Arranging to telecommute a portion of the week can also significantly lower your annual mileage.
Increase your deductible
Raising your deductible may be the easiest way to lower your annual auto insurance costs, but it does come with some risk. A higher deductible means you will be paying more in the event of a car accident, so weigh your safe driving record against the risk.
While auto insurance is a necessary expense, these simple tips may help you save money on your annual premiums.