Mar 232017

While the entire country is riveted by the health insurance debate in Washington, there is another form of insurance which you are required to get – auto insurance. As the government owns the road this makes sense; however, it is also a major expense. As such, saving money on auto insurance is a high priority. With that in mind, here are some tips on how to save money on your auto insurance.

Safe Driver

Getting tickets and being in accidents are the surest ways to ensure your auto insurance premiums go through the roof. As such, you want to drive safely at all times. Remember your defensive driver training and use it. The reality is that driving 5 MPH faster only results in arriving two minutes earlier on a 30-mile trip. So why risk the ticket?

If you do get a speeding ticket, then see if there is an option to take driver’s ed. course. Doing so, won’t net you the same insurance premiums as a safe driver, but it might reduce your costs significantly.

Only Pay for What You Need

Besides driving safely, this is the easiest way to save money on your auto insurance. Many people pay for insurance programs they don’t need. These can include collision or comprehensive insurance.

That being said, you only want to do this if your car is valued at less than your deductible as you are basically paying for coverage that you can never use at this point. So, save some cash and drop the coverage you don’t need.

Don’t Buy the Ferrari

Italians make beautiful cars, but in most cases, the insurance is even more than the car itself. This goes for most sports cars or other exotic choices. Instead, opt for a more sensible vehicle like a sedan, or the minivan.

Also, see if your insurer offers a discount for electric or hybrid vehicles. This could be another way to save big. Don’t buy the Ferrari, get a car which makes more sense and your insurance premiums will go down.

Reduce Your Coverage

Another way to reduce your auto insurance is to reduce your coverage levels. Let’s face it, why would you pay for extra insurance if you don’t need to. According to research conducted by NerdWallet, for every $500 you increase your deductible will help you save $200 per year.

So, the question is whether you want to have $200 in your pocket today or to pay $500 when you have an accident. I would say keep the money in your pocket.

Discounts, Discounts, Discounts

Increasingly auto insurers are offering discounts. This might be through your bank or other options. Anyways, the point is that there are many options out there to save money. These can include bundling home, auto, life, and health insurance companies or even getting discounts for putting a camera or some other tracking device in your car.

Don’t Settle

Different insurance companies have different rates so it behooves you to shop around for the best rate. Besides operational differences, one reason for the difference in rates is the overall pool of drivers that one insurance company carriers compared to another. As such, you might be just an average driver for one company, while another will see you as a safe driver. Shop around and get yourself the best rates.

Shopping around is also important if you are looking to insure a special situation, such as a car with a salvage title. In these cases, many insurers will only offer limited coverage, so you want to check with several insurance companies to see what exactly they will cover and for how much.

Improve Your Credit

It’s unfortunate, but your credit score is closely tied to how much you will pay for your car insurance. Here’s why. Insurers view people with poor credit as increased risks due to the likelihood that they are more prone to make bad decisions.

So, if you want to save money on your auto insurance, then look at your credit score. See if there are any opportunities to boost your score by 10, 20, 30 points, or more as this will result in hundreds of dollars in savings every year.

Remember saving money on your auto insurance is not impossible. Follow these simple steps and see your premiums go down.

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