Tips for SAVING Money on Car Insurance
Prices vary from company to company. Don't shop on price alone: Look at the company's reputation, its customer service and the type of coverage and discounts it offers.
Ask for higher deductibles
If you file a claim, the deductible is the amount of money you pay before your insurance kicks in. Higher deductibles mean lower premiums. For example, increasing your deductible from $250 to $500 on collision and comprehensive coverage could reduce that portion of your premium by 15 to 30 percent. Increasing it to $1,000 can you save you up to 40 percent or more, according to the Insurance Information Institute. Just make sure you can pay it in the event that you need to make a claim.
Drop collision and/or comprehensive coverage on old cars
If your car is totaled in an accident, you receive the actual cash value of the car. Although car insurance companies use their own criteria to determine fair market value for vehicles, you can get a ballpark estimate from NADA Guides. For older cars, it may not make financial sense to pay premiums over many years to maintain collision and comprehensive coverage. As a general rule, it doesn't make sense to buy comprehensive and collision coverage for a car worth less than $1,000.
Buy a car that’s cheap to insure
A car’s “loss history” affects its collision and comprehensive insurance premiums. If other drivers of your model file frequent or expensive claims, insurance rates for your car will be higher than average. People sometimes tend to buy the vehicle before asking for insurance prices.
Buy your home and auto insurance policies from the same insurer
Many insurers will give you a discount if you buy two or more types of coverage from them.
Maintain good credit
Your credit rating may affect your car insurance rates. Use of credit scores in setting car insurance prices varies by state and insurance company, but statistics show that drivers with good credit records tend to make fewer insurance claims.