If you are looking for a way to save some money each year, you can do it by getting a lower car insurance premium. You won't see savings by simply asking your agent, but there are some strategic ways you can reduce how much you pay. Taking advantage of several of these suggestions will definitely make a dent in your premiums.
Increase Your Deductible
Many drivers like having a low deductible because it is less money out of their pocket when they need to make a claim. If you rarely make claims, you could be paying more money for a benefit you are not even taking advantage off. If you are capable of paying a high deductible, see how you'll save by changing it. You will pay more if you need to make a claim, but you could make up for it in the savings over several years.
Get Rid of Collision Insurance
Collision insurance is popular on brand-new cars because you want the vehicle to look pristine at all times. As the car gets older, you should consider dropping your collision coverage. That is because the maximum payout you will receive is what the car is worth. An older car that is only worth $2,000–$4,000 may not be worth having collision coverage on when you consider how much it is costing you. Take the money you save on collision coverage and put it away towards purchasing a new car when the time comes.
Take Public Transportation
A portion of your premium is based on how many miles you drive each year. If you change your commute to use public transportation, or even cut your miles in half by carpooling with a coworker, you will be reducing your risk of getting in an accident. Notify your insurance agent of the change and see how much it reduces the amount that you pay for insurance.
Ask about Safe Driving Discounts
Some insurance providers offer discounts for those that demonstrate they are safe drivers. For example, some insurance companies offer a device that you can install in your car that tracks your driving behavior. Safe driving, such as normal acceleration and braking, can be rewarded with lower insurance premiums.
If you are not getting the savings you are looking for, start looking into other insurance companies. Go to websites of insurance agencies in your locality. It doesn't hurt to call around and get a new auto insurance quote so that you can compare it to what you are paying now.