Seven Ways to Save Money on Your Car Insurance
Improve your credit score.
People with better credit tend to have less insurance claims, a statistic not lost on insurers.
If you have poor credit, you need to start taking some small steps to improve it - starting with paying down all of your debt.
Not only will this help your lending rates (and availability of credit), but it will also lower your car insurance premiums.
Get a good student discount.
Are you a student? Insurers routinely offer discounts for drivers that can pull their weight at school.
Requirements for each company are different, but generally you'll need to provide a school transcript that shows at least a B (3.
0) average or higher.
It's a nice savings considering the increased costs to insure a college-age (or younger) driver.
Take a defensive driving class.
Defensive driving classes are encouraged by insurance companies and usually provide a discount for the same year that the class was taken.
Best of all, you can find courses online that will let you "attend" the class in the comfort of your own home.
Prices are cheap, too - most defensive driving classes will set you back about $30.
Lower your liability coverage.
If you consider yourself to be an above average driver, you may want to consider lowering your liability insurance.
The thinking here is that better drivers will get into less (at-fault) accidents, and therefore need less coverage.
Less coverage equals a smaller premium.
Of course, if you're the type of driver that routinely "bumps" into things, this strategy probably won't work.
Shop around.
Don't just go with the gecko you see on TV.
Insurance companies have different criteria for drivers, and as a result may give all kinds of quotes.
You might find that jumping ship and choosing a different insurer could save you, on average, 15% or more on car insurance.
Raise your deductible.
The deductible is the amount that you pay out of pocket before your insurer pays your claim.
It's usually $500, but the lower the deductible, the higher your insurance premium.
If you can afford a larger deductible, you should go for it - you'll end up paying less per pay period.
Let your insurer know if you have major life changes.
Major life changes such as getting married, moving, having children, changing jobs, and retirement could very well qualify for additional discounts.
Buying a home could not only save you money on your premium, but you may also be able to combine your homeowner's insurance policy with your car insurance for even greater savings.
People with better credit tend to have less insurance claims, a statistic not lost on insurers.
If you have poor credit, you need to start taking some small steps to improve it - starting with paying down all of your debt.
Not only will this help your lending rates (and availability of credit), but it will also lower your car insurance premiums.
Get a good student discount.
Are you a student? Insurers routinely offer discounts for drivers that can pull their weight at school.
Requirements for each company are different, but generally you'll need to provide a school transcript that shows at least a B (3.
0) average or higher.
It's a nice savings considering the increased costs to insure a college-age (or younger) driver.
Take a defensive driving class.
Defensive driving classes are encouraged by insurance companies and usually provide a discount for the same year that the class was taken.
Best of all, you can find courses online that will let you "attend" the class in the comfort of your own home.
Prices are cheap, too - most defensive driving classes will set you back about $30.
Lower your liability coverage.
If you consider yourself to be an above average driver, you may want to consider lowering your liability insurance.
The thinking here is that better drivers will get into less (at-fault) accidents, and therefore need less coverage.
Less coverage equals a smaller premium.
Of course, if you're the type of driver that routinely "bumps" into things, this strategy probably won't work.
Shop around.
Don't just go with the gecko you see on TV.
Insurance companies have different criteria for drivers, and as a result may give all kinds of quotes.
You might find that jumping ship and choosing a different insurer could save you, on average, 15% or more on car insurance.
Raise your deductible.
The deductible is the amount that you pay out of pocket before your insurer pays your claim.
It's usually $500, but the lower the deductible, the higher your insurance premium.
If you can afford a larger deductible, you should go for it - you'll end up paying less per pay period.
Let your insurer know if you have major life changes.
Major life changes such as getting married, moving, having children, changing jobs, and retirement could very well qualify for additional discounts.
Buying a home could not only save you money on your premium, but you may also be able to combine your homeowner's insurance policy with your car insurance for even greater savings.
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