9 Ways to Pay Less For Your Car Insurance

With gas prices skyrocketing there’s no better time to find ways to save money on your car. Here are 9 tips to keep your car insurance bills in control.

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1. Careful driving. If you keep your driving record clean for about three years, you could qualify for discounts offered by many insurance companies. Avoiding accidents and serious violations will not only save you a possible 20% on your car insurance, it also helps keep your rates from rising at renewal time.
   
2. Keep your credit in line. A poor credit history can cause your car insurance to increase, even if you don’t file a claim. Many companies will examine your credit when factoring how much it costs to insure you. Stay on top of monthly credit payments and review your credit report annually to catch any errors.
   
3. Look into higher deductibles. Your deductible is how much you pay before the insurance company covers the costs of your claim. By choosing a higher deductible, your premiums can be lowered by about 10-30%. Be careful: this money saving tip is good for people at low risk for accidents, and have the cash on hand to cover the deductible if a claim has to be made.
   
4. Smart shopping. Whether you’re looking for a brand new policy or it’s renewal time for your current one, you can save just by doing some quick comparison shopping. The price of your insurance premium can vary dramatically from company to company, even on the exact same car.
   
5. Reduce your mileage. Some insurance companies will cut you a deal if you keep your annual mileage down. If your car is just for getting around town, ask your insurance agent just how low you have to go to qualify.
   
6. Bundle your insurance policies. You may qualify for extra discounts if you purchase multiple insurance policies (car, home, etc.) through one company. Got more than one car? You could save by insuring them all under one policy, or through one company.
   
7. Cut back on coverage for older cars. Got an older car? Add up how much money you pay yearly for collision coverage. If the amount is not substantially more than the book value of your car (typically the case for older cars valuing at $1,000 or less) you could save by dropping the extra coverage.
   
8. Install and report anti-theft devices. The more “at risk” your car is of being stolen affects how much an insurance company will make you pay for your policy. Taking preventative measures like installing car alarms (and informing your company about it) will make your car less expensive when it’s time to insure.
   
9. Extra discounts. You may be eligible for further discounts if you take a safe driver course, or if a student in your household maintains good grades. Ask your insurance agent to tell you about all the special discounts they offer.