Ways you can lower your auto insurance premiums
There are many ways to save on auto insurance:
- Motor Vehicle Record. The first thing an insurance company looks at when offering you a quote is your driving history. If you have a spotless record, you should definitely get a better rate than a driver with a not-so-clean record.
- Your vehicle. Companies consider the kind of car you drive. They take into account the sticker price of the vehicle, the cost to repair it, replacement value, safety features, and how well it will withstand an accident.
- Multiple vehicles. You can save when you insure more than one vehicle on the same policy, or when you insure both your car and your home.
- Higher deductibles. If you have the financial resources, it may be wise to increase your deductible. This will often reduce your annual premium significantly.
- Methods of payment. If you have the financial ability to pay the entire year’s premium in one lump sum, you may be eligible for a discount. If you can’t pay in one lump sum, see if there are discounts for paying with automatic withdrawal from your checking account.
- Investing in safety features. Electing optional safety features on a new vehicle, or adding them to a used vehicle, will save your money on your auto insurance. Anti-lock brakes, automatic seatbelts, side air bags, car alarms and other anti-theft devices may be beneficial.
- Good student discount. If you are a student you can lower your premium by maintaining good grades. Nearly every insurance company offers the good student discount, available to full-time students that average at least a “B” in school.
- Low mileage. Some companies will offer a discount if you stay below a certain number of miles driven each year.
