Save On Your Auto Insurance in 3 Easy Steps

We all know that auto insurance is compulsory, but that does not mean that we should pay huge prices for it. The fact is that while you may not have much control over where you live, how old you are and the laws in your state that might work against you – there are plentiful ways to save on auto insurance. These tips might save you only a little bit of money, but gathered all together can save you quite a tidy sum of money.

The first and easiest for many is to pay your premium in one lump sum every year. This will save you on charges that the auto insurance company levies to break up the premium into many small payments. It just makes sense to do this because the only extra you are paying is interest and not actually cover – use that money to either get better cover or put it away to increase you deductible.

You should also look at the discounts offered by various auto insurance companies when looking to sign on. You could substantially decrease your premiums if you buy a car that has ABS (Anti-lock Braking System) brakes, an alarm or other anti-theft device, or even by being a good student (some auto insurance companies actually give you a bonus if you get high grades)! You could also look to see if the company you have another type of insurance with will give you a discount if you have another product with them (renters insurance or life insurance). Usually if you already have another product with a company, they will accommodate you and give you a better price – especially if you tell them you are shopping around for better offers. It always pays to be a good consumer!

Then there is also what profession you are in. If you were thinking of changing jobs – check to see if what you want to do is considered high risk by the auto industry. You could use the info to make an informed decision on whether to change at the present moment or not (your profession also impacts on health and life insurance).

Of course, your driving experience (in years and miles/year) will also have an impact on your insurance premiums. This is not something you can control outright, but if you plan carefully, you could decrease your long term premiums by watching how you drive, when you normally drive and your general driving behaviour.

If you have multiple cars insured, this will allow you bargaining space with your auto insurance company. If your spouse buys a second car, or you are buying your teenager a car, you could haggle a nice discount rate with your insurance company. Do not be afraid to ask and demand – there are always other companies who would be happy to gain your service. You just need to remind your company of that.

Start Saving Now!

Get your INSTANT...