Whether you drive a brand new car or an old beater, you need to have sufficient car insurance coverage in place. Car insurance protects your own vehicle, but it also protects you from liability in the event of an accident. Going without car insurance simply is not an option. Fortunately, drivers have a number of ways to lower the cost of insurance without skimping on coverage.
Check your credit report before you start shopping. Some car insurance companies factor your credit history into their premium decisions. Notify the credit reporting agency of any inaccuracies or discrepancies so your credit report be cleaned up before the insurer sees it. If you truly do have bad credit, shop around for a company that does not use your credit history in its decisions.
Contact the insurer that holds your homeowners policy. Many companies provide multi-policy discounts to customers who insure their homes and their cars with the same firm.
Shop around as much as possible. Call each car insurer in your area to get a quote. Also use Internet comparison tools to get multiple quotes from different companies. Compare those quotes carefully and follow up with the companies offering the best rates.
Drop comprehensive and collision coverage if the cost of that coverage is more than 10 percent of the value of your vehicle. You can find the book value of your car in the Kelly Blue Book.
Take a defensive driving course. Many insurers provide discounts for drivers who successfully complete a defensive driving course. If you have a teen driver in the house, ask about discounts for driver education classes and good students.
Tell the agent about any safety and anti-theft devices installed on your vehicle. You might get a discount for things like airbags, anti-lock brakes, supplemental passenger restraint systems and anti-theft devices. You could also get a discount for keeping your car in a garage versus parking it on the street.
Raise your deductible. Raising your deductible from $500 to $1,000 could save you a lot of money on your car insurance premiums. You can use those savings to self-insure your deductible. Simply transfer the money you save each month into a special savings account until you have enough to cover the higher costs of repairing your car in the event of an accident.
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