1. The Right Plan For Your Needs

Before you purchase a new auto insurance plan, you should assess your driving habits and personal needs. There are many deals out there, but not all will be right for each driver. For example, if your job or social needs means you drive a lot, then pay-as-you-go insurance or getting a reduced rate for being a low-mileage driver wouldn’t necessarily be a good fit.

2. A Good Credit Score

Almost everything you purchase is impacted by your credit score, even how much the premiums will be for your insurance and how much you’ll be responsible for in the event of a claim. On average, your cost will be much less if you have a higher credit score. You should be mindful of your credit score before attempting to purchase a new auto insurance policy and try to improve it if it’s on the lower end.

3. Pay By The Year

Paying your premiums twice a year, quarterly, or monthly may seem easiest on your pocketbook at the time, but it actually ends up costing you more in the long run.

4. You Aren’t A Liability

Insurance companies use complex math formulas to determine their risk of insuring a customer. By keeping your driving record clean and maintaining good credit, you can show the insurer that you’ll be a low liability.

5. Driving Offenses And Speeding Tickets

The one time cost of a $50-$150 traffic ticket may not be a big concern, but the prolonged added expense from your auto insurance premiums substantially going up can be significant. If you want a good deal on your auto insurance, nix aggressive driving.

6. Your Vehicle

You, the driver, aren’t the only liability the insurance company looks at when determining your cost. The model, make, and safety features of the vehicle to be insured are all factors in premium pricing. The turbo engine may look good on the lot, but choosing a safer car could equate to hundreds of dollars in auto insurance savings.

7. Compare Prices

Obviously, it takes a little homework and some auto insurance quote comparisons to get the best deal. Shop around, get quotes, and negotiate. Since your insurance needs may differ from your friends and family, don’t just assume that their best deal is your best deal.

8. Discounts

There are a multitude of discounts, such as good student, good driver, and senior citizen, commonly offered by various insurers. Some even offer a rebate for drivers that haven’t had a claim within a specified period of time. Many insurers don’t advertise their discounts or automatically enroll you. You’ll need to ask about and apply for the discounts applicable to your situation.

9. Minimum Coverage

Minimum coverage may be ideal for those driving a 25-year-old vehicle that could easily be replaced, but newer cars are expensive to replace and repair. A fender bender that just damages a headlight can cost hundreds of dollars to repair. So, keep in mind that the best deal on auto insurance isn’t all about immediate savings; it’s also about picking a plan that will be there during an accident.

10. Only Insure What You Need

Insurance agents often try to sell you all the costly bells and whistles, whether needed or not. Ask yourself if you need it before committing to it. For example, ask yourself if you need collision when your vehicle isn’t valued at over $2,000 and you won’t even get that Blue Book value on it if it’s totaled.

Shop Around

Thanks to online auto insurance quote comparisons, it’s a quick and easy process to find the best insurance rates. Some people are often hesitant to make insurer changes because they feel an obligation to their existing agent or insurer. Remember, it doesn’t matter how long you’ve been with a company, they will rid themselves of you if you get too many traffic violations/accidents or don’t pay your premiums on time. Their line of loyalty literally ends with your money, which is exactly why you should rid yourself of them if they’re costing you money.

Discounts

Ask your agent about bundling your home, auto, and other applicable insurances. Even if not directly within the company’s marketing material, they may provide a discount for bundling. You might want to consider rethinking other insurance carriers if the carrier refuses the discount. Ask your insurance agent for a listing of all discounts offered. There are several other discounts and pseudo discounts common to the insurance industry. Some may be more trouble than their worth, but others like the following may be well worth the effort:

* Defensive driving class

* Retired or senior citizen

* Multiple car

* Good driver

* Safe car

* Good student

Alternative Financing

Full coverage isn’t mandatory on vehicles not financed through a lending institution. Not everyone will be able to avoid this, but some individuals might be able to finance their vehicle through borrowing against their life insurance policy, a personal or home equity loan, or by selling another vehicle or asset. By finding alternative financing options, you can save insurance dollars and avoid loan interest. Insurance agents often try to sell drivers more than they actually want or need. Be sure to find out your state’s minimum insurance requirements.

Check Rates Before Vehicle Purchases

Ask your insurance agent about the expense to insure a vehicle before the purchase. Some vehicles have a higher premium because they, as well as their drivers, are considered higher risk. For example, insurers typically consider sports cars a higher risk because the drivers tend to take more risks during driving. Makes and models that are commonly stolen or that have expensive replacement/repair costs can also impact premiums. Even the color of the vehicle may be a cost factor since some are harder to see than others.

Drive Less, Pay Less

Keep driving miles under 6,000/per month and you may qualify for a better rate.

Shelter Your Vehicle

If possible, park your vehicle in the garage since this lessens the probability of it being damaged or stolen.

Deductible Increases

Find out what the cap is for the insurer; most caps are $500 or $1000. If possible, raise your deductible and take the initial savings to build up a fund equal to whatever deductible you’d actually be able to pay for in the event of an accident.

This might seem like a lot of work for little reward, but even if you only save $10 a month in premium dollars, you’ll have an extra $120 each year. Who couldn’t find a place better place for that money?