Auto Safety Watch

15 Simple Steps to Saving Money on Car Insurance

Car insurance can be a financial blow to any budget. However, there are many smart tips for consumers to consider before purchasing a policy.

Shop Around
Because rates vary from state to state and from company to company, consumers should always shop around and compare rates of coverage. When comparing companies, find out whether or not discounts are offered if more than one car is insured. This is a multi-car discount. Further, multi-policy discounts can often be obtained when car, life and home insurance policies are purchased from the same company. This usually one of the most common ways to get cheap car insurance for all your cars.

The Collision Question
Does the car owner need collision insurance? Collision insurance covers physical damage and injury no matter who is at fault. If the car is owned by the consumer, or if the car’s value is less that two thousand dollars, then collision insurance is generally not needed. Liability coverage is adequate if the car is older or low in value.

Deductible Dilemma
The amount of the deductible affects the amount of premiums. Simply put, if the deductible is high then the premium is low. If the deductible is low then the premium is high.

Anti-theft Devices are Desirable.
Most new cars have anti-theft devices or security systems. This will result in discounts for the car owner. If one doesn’t have an anti-theft device, consider having one installed.

Storage that Satisfies
A secure, locked storage facility will satisfy the requirements for discounts. Furthermore, off street parking can also result in lower premiums.

Reduce the Number of Drivers
Limit the number drivers for the car. In particular, prohibit any drivers that are under the age of 25.

Clean up Credit Reports
If the car owner has a low credit score then premiums are likely to be higher. Insurance companies consider low scoring clients to be a risk, thus the higher price for coverage.

Reduce Time on the Road
Companies offer discounts to those who average less miles on their vehicle. Discounts are also given to those who car pool.

Have a Good Driving Record
Past accidents, speeding tickets and DUIs will effect the amount of the premium.

Choose Less Trendy Models
Buy smaller, cheap cars. Insurance costs are often determined by the price of the car and repair costs. The likelihood of theft is a consideration as well.

Change your place of residence.
If you live in a high crime area, premiums will be considerably higher due to the high rate of auto theft. Move to an area with a lower crime rate for the best deal on car insurance.

Defensive Driving
Take a defensive driving course offered by your insurance company.

Pay your policy in full.
Paying your policy in full will save money on your policy. Companies usually have fees for financing the premium.

Affiliate discounts
Take advantage of affiliate discounts. If the car owner belongs to a club, sports association or union, then discounts are available.

Good Student Discount
Most companies offer a discount to students with good grades.

With research and planning, money can be saved on car insurance. Take advantage of the tips above to obtain the most affordable premiums possible.