Saving Money On Auto Insurance

You just got the bill for your annual auto insurance premium in the mail. Not exactly jumping up and down with joy, are you?

That’s not surprising. The average auto insurance policy costs several hundred dollars a year. And depending on your driving record, age, and where you live, you could wind up with a huge annual premium.

Yes No

How To Lower Your Auto Premiums

Yes, going without insurance would save you money. No, it isn’t an option. Most states require you carry a minimum amount of insurance at all times.

But there are some easy steps you can take to slash the costs of your policy. Here are a few tried and true ways to save money on your auto insurance:

• Increase your deductible. The cost of your premiums is directly related to the amount of your deductible. The higher your deductible, the lower your premiums will be. If you don’t mind the added risk of higher out-of-pocket costs, increasing your deductible will save you some money each month.
• Take a cost-conscious look at the kind of car you’re driving. Certain cars attract higher insurance rates than others. Sports cars, luxury cars, and SUVs are prime theft candidates. So they’re more expensive to insure. If you’re in the market for a new car, buy one that’s cheaper to insure.
• Install anti-theft devices in your car. Many insurance companies will cut you a break on your premiums when you install car alarms and other devices to discourage theft.
• Consider consolidating all your insurance. Most insurers offer discounts to customers with multiple policies. So if you’re insuring your home at one company and your car with another, you could save when you consolidate.
• Before you renew, shop around. The internet can be a fantastic resource when it comes time to go comparison shopping. Don’t forget to use it. Get a few comparison quotes before renewing any auto insurance policy.

Don’t just assume that your car insurance is always going to be too expensive — shop around. Get free car quotes from several agents… you may find yourself a better deal.