1. Bundle Your Insurance Policies.
If you have multiple cars or multiple forms of insurance, bundle it all together. You can bundle with homeowners’ or renters’ policies, boat insurance, motorcycle insurance, and even umbrella policies. Most insurance companies will offer bundling or multi-line discounts if you purchase all or most of your policies with them.
2. Drive safely.
Customers with a record of accidents and moving violations (including speeding tickets) generally have a higher premium because they are considered a higher driving risk. In fact, Insurance.com found that even a single ticket could increase your auto premium by 22%.
3. Install car safety features.
More on safe-driving discounts. In the same way that a defensive course minimizes your risk, so do car safety features. Often cars will have a list of safety equipment you need installed in order to get an additional discount. These features can include airbags, anti-lock brakes, electronic safety controls, and automatic seatbelts. Sometimes even showing the receipt of a kids’ safety car seat can lower your car insurance premium.
4. Improve your credit.
Insurance companies take your credit profile into account when calculating premium costs in most states. Generally, the better your score, the lower your rates in many states. This is often only applied at the beginning of a policy, though. So raise your credit score for the next time you go insurance shopping!
5. Shop around.
Don’t be afraid to shop around and get quotes from different companies. Our expert insurance advisors can help you shop multiple insurance companies at once, compare rates and identify discounts you may qualify for to help you save on your auto insurance.
6. Avoid lapses in coverage.
If you have even a day without auto coverage, your premiums will likely go up. When you are switching insurance policies or providers, don’t cancel your former insurance until the new one has kicked in. In addition, always pay your bills on time. Even one missed payment could skyrocket future premiums.
7. Use auto-pay and fewer installments.
Speaking of payment: pay more, less often. Most companies charge a fee each time you pay a bill. This is tacked on to your standing premium. If you pay every 6 or 12 months as opposed to monthly, you’ll have to pay less billing and service fees.
8. Ask about teen driver discounts.
Teen drivers are the most expensive factors of auto insurance premiums, because teens are at the highest risk of accidents. However, some insurance companies will offer good-student discounts, where your monthly rate will be slightly lowered if your teen maintains at least a B average.
9. Increase your deductible.
Generally, your premiums and deductibles are inversely proportionally. Your deductible is what you have to pay out of pocket before your coverage kicks in when there is a claim. The more you pay upfront in a premium, the less you have to pay out of pocket. Reversely, the less you pay in a premium, the higher your deductible.