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Top ways to save on car insurance - Slashing your premiums

Determine the costs of insuring a vehicle in question before buying it - You may have to make an alternative choice if the premiums are too high for you to accommodate financially.

Top ways to save:

1) Shop multiple insurance companies.

This is probably the most important step. Different companies charge different premiums. The easiest way to accomplish this task is to use online resources. Many of the online resources included in this section boast a minimum savings of $300 per year on insurance policies.

As you will see, the main benefits of shopping online are maximum savings combined with a hassle free and quick shopping experience. You are also under no obligation to accept a quote and all quotes are e-mailed to you - no over the phone sales pressure. You can literally shop several insurance companies in less than an hour on all of the vehicles you are considering.

2) Select the proper vehicle.

Consider a vehicle that has many safety features and anti-theft devices. If a vehicle is prone to theft or is not safe, your premiums will go up. Instead of researching many cars for this information individually, consider using the above resources and getting quotes. Money talks and an actual quote is the best way to determine affordability.

3) Provide all the necessary personal information

Do not leave out any personal information when getting quotes. Insurance companies give better rates if you have certain criteria that they think is important. Inquire into discounts that may be granted for criteria such as:

  • Insuring more than one car;
  • No accidents in three years;
  • No accidents ever;
  • Drivers over 50 years of age;
  • Driver training courses;
  • Good grades for students;
  • Low mileage discounts;
  • College student living at least 100 miles away from home without a car on campus;
  • Not smoking;
  • Not drinking;
  • Serving in the armed forces (past or present);
  • Ignition cutoff system and / or a hood or wheel-locking device;
  • Being a doctor, lawyer, farmer, or member of a profession that the insurance company regards as a good risk;
  • Being female and the only driver in the household; or
  • Renewing for longer than a year

4) Change the way you drive

How much you drive can affect your premiums. The more time on the road you spend, the higher a risk you are. Consider utilizing public transit to decrease total driving mileage, which may assist in reducing premiums. Consider car-pooling to save money as well.

5) Consolidate your insurance

Try to keep all insurance policies under the roof of one carrier, as they will often offer a multi-policy discount. When getting insurance quotes, combine all your insurance needs with one company. This can save you money across the full range of insurance needs. Ensure that the policy limits cover all the drivers in the household, and that the limits are not so low to leave the individual open to lawsuits and financial ruin.

6) Raise your deductible

Raising the deductible on the amount the individual self-insures by a total of $200-$500 will decrease the Collision / Comprehensive price tag by up to one-third. Raise the deductibles to the maximum amount you can afford will lower premiums.

7) Avoid duplicate medical coverage

If you have an adequate comprehensive health insurance plan, you should consider dropping the of medical expense coverage from your auto insurance policy. This could lower your premium by up to 40%.

8) Drop collision and comprehensive on older cars

You may wish to drop collision and / or comprehensive coverage on older cars. (Collision coverage takes care of the cost of repairing your car if you are in an accident, regardless of who's at fault; comprehensive pays if your car is stolen or damaged by fire, flood, hail or wind.) If your car is not worth much, why pay a premium for repairs on a vehicle you will probably replace if it's badly damaged? Collision damage for an older car can cost more than the car is worth

9) Drive carefully

Finally, at the risk of being obvious, drive carefully. Accidents can greatly increase your premiums as well as cause the insurance company to refuse to renew (or, in serious cases, to cancel) your policy. 

Consumers should use these tips and do their homework before taking the plunge, and they will get the most complete coverage without putting a dent in their bank accounts.