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How to Save Money on Auto Insurance

How to Save Money on Auto Insurance

The economy in America continues to struggle and shows few signs of making a rapid recovery. This has led many people to look for ways to cut back on their bills and trim their budgets as much as possible. One area that most people ignore, but where it is very possible to save a lot of money, is on your auto insurance. Below are some excellent ways to get more affordable insurance premiums that you might not know about.

Compare Rates from Different Companies

Every year when your insurance comes up for renewal it is a really good idea to check what other companies are charging. Don’t assume that just because you have been with your insurance company for a long time that they are rewarding you for your loyalty by giving you the best rates. There are free sites online that allow you to compare the rates from several companies at the same time just by entering your zip code.

Raise Your Deductibles and Reduce Your Coverage

If you raise your deductible from $200 to $400 you can save up to 30% on your insurance. Raising it to $1,000 could save you at least 40%. If your vehicle is older you can save even more by eliminating collision and comprehensive coverage.

Check the Rates Before You Buy a New or Used Car

Different cars have different rates that the insurance companies charge based on how much the car costs to repair, how often they are stolen, and how good their safety rating is.

Improve Your Credit

Surprisingly, many companies are starting to base premiums on your credit score. This is because statistics have shown that those with bad credit file more claims, so even if you have a perfect driving record you will probably be charged more for insurance if your credit history is bad. Take advantage of the free yearly credit report that the government offers so that you can go over your reports to try to fix any mistakes you find on them. Carefully examine the details on all three of your reports and be sure to contact the appropriate credit bureaus to have these errors repaired.

Even in a bad economy it is not that difficult to get decent auto insurance rates. Taking advantage of the tips detailed here can help you save a lot of money. Be sure to ask the company you decide to go with if they have any additional discounts that you need to know about.