1. Understand What You Are Buying
Comprehensive and collision insurance covers physical damage to your own car. Liability covers you for damage to property and bodily harm to others. Comprehensive covers you if your car is damaged while driving or from other incidents such as theft or natural disasters like floods or fire. You have to own liability insurance but you don’t have to have any coverage for your own car if you don’t want to protect your assets.
2. Take Advantage of Discounts:
You will probably qualify for a discount for cheap car insurance if you are a:
• Good driver
• Good student
• Have Multiple policies (like Homeowners and Auto))
• Drive Multiple cars
• Senior driver
• Person that Owns A Vehicle with safety features (such as airbags, ABS brakes, car alarm, etc.)
Don’t assume that your company is going to go out of its way to offer you these discounts for cheap car insurance policies. I suggest you go over your policy every year with your insurance provider and make you are getting all the discounts you qualify for.
3. Consider higher deductibles.
The more risk you take off the insurance company’s hands, the lower your premium is going to be. Review your driving record over the last several years. How many accidents did you get into? How much damage was incurred? If you have a history of no or very few claims, consider taking on more risk to reduce your premium.
4. Don’t Make Friends
Just because you’ve been using the same agent for several years doesn’t mean she can offer you the lowest rates. Keep everyone honest by shopping the policy online and otherwise to make sure you get the least cost coverage.
5. Check Your Mileage
When your agent asks how many miles you drive to work, don’t just guess. Check it out and let your agent know. If your number is low enough, you might just qualify for a sweet discount.
6. Set Up Automatic Bill Pay
Many companies offer discounts if you pay your insurance premiums electronically. If you do a good job tracking your budget, you’ll have enough money to cover the premiums and you’ll make out with lower costs.
7. Go to School
Some companies offer discounts to drivers who attend defensive driver courses — even if you haven’t had an accident. Make a quick call and find out if your company is one of them.
8. Keep A High Credit Score — Bonus Tip
Insurance companies know that people with high credit scores are generally more responsible and people who are responsible tend to drive safely and have few claims. As a result, you’ll get better auto insurance rates if you keep a good credit score.
Do whatever you can to improve your credit score. Then, check to know what your credit score range actually is. Once you see that your score has improved, let your insurance agent know about it and request a lower premium.