10 Easy Ways to Save on Car Insurance

January 13, 2009

When you factor in the cost of gas, tune-ups, registration fees, and maintenance, owning a car can be incredibly expensive! But what most people don't know is that saving money on car insurance is one of the easiest ways to cut costs.

Reviewing your policy, comparing quotes and raising your deductible are just a few ways you can start saving on car insurance.

1. Shop and Compare Rates Twice a Year
If you check your car insurance rates in January, make sure your check them again in July. According to an independent study, those who compare rates and switch carriers at InsWeb.com save an average of $301* on a six month policy! Tickets or no tickets, you're a different driver than you were last summer. Getting updated quotes could land you significant car insurance savings.

2. Higher Deductible = Lower Premium
Simply put, the higher your deductible, the lower your premium. It is true that the cost of an accident will be that much more expensive; however, if the damage is minor (grey zone in making accident claim), you'll be spending the same out-of-pocket amount regardless.

3. Don't Pay in Monthly Installments
Want to make a cheap policy even cheaper? Additional administrative fees are applied to payments when you split your premium in to installments (i.e. monthly, semi-annual, annual). Be aware that a monthly fee of even $7 can add up to $84 over the course of a year.

After all, why should you pay more for the exact same coverage?

4. Multi-Line Insurance Discounts
The most under-recognized car insurance discount is also one of the best: purchasing your auto and home insurance policies with the same company. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.

5. Safe Driver Discounts
Most insurance companies reward safe drivers with lower car insurance premiums. In fact, some states require insurers provide safe driver discounts. If your driving record is clear of tickets and accidents in the past three to five years, shop around at InsWeb.com and see if you're missing out on this money-saving discount.

6. Don't Overpay for Tickets
Whether you like it or not, traffic tickets are a reflection of your driving habits. If you're tagged with a ticket, your car insurance rates could spike. But who says you have to be a prisoner to your car insurance company? Don't let your insurer unduly punish you--shop around and see if you can find a more reasonable rate with another company.

7. Discounts for Installing Safety Features
Many car insurance companies offer discounts for various safety features on your vehicle, including air bags, security alarms, factory-installed mechanical seatbelts and antilock brakes. When getting a quote, be sure you mention your vehicle's safety features to snag available discounts.

8. Don't Waste Money for Unnecessary Coverage
Are you paying for coverage you don't need? For example, you may be a member of an auto club that provides towing services, yet you're also paying for towing on your car insurance policy. Look for opportunities to eliminate unnecessary costs, and save big.

9. Good Student Discounts/Senior Discounts
Students often receive discounted car insurance rates for good grades, as many companies feel conscientious students make conscientious drivers. Similarly, insurance companies are known to value the wisdom of an experienced driver, and offer senior discounts to drivers over 50.

10. Drive Less - Pay Less
If you are driving fewer miles, you may be eligible for a car insurance discount. If you keep your annual mileage low, a number of insurers will offer you a low-mileage discount.

Even better, if you take an alternate means of transportation to and from work, your insurance company may consider you a "pleasure driver." According to the Consumer Federation of America, this classification could save you 10 to 15% ($94 to $142 off the average premium) on your insurance.

If you're looking to save money on car insurance, try filling out the InsWeb quote form on AskPatty. By comparing multiple car insurance policies, you could land substantial savings! Click here to begin comparing quotes today!

*National average savings information based on InsWeb 6-month policyholder survey data from 4/27/05 to 7/4/05.

Insweb_logo Article provided by InsWeb