Most people are content with the cost of their auto insurance, and they barely notice as the premiums slowly rise year after year. Changing your car insurance policy can be a real pain and take a lot of time, but it can save you hundreds of dollars a year if you take the time to look into it. When you are looking to lower your car insurance premiums, there are a few easy strategies you can follow including shopping around to other car insurance companies, increasing your deductible, and combining your auto insurance with your homeowners insurance. Other strategies can include asking for low mileage discounts, keeping a good credit rating, and getting rid of things you no longer need on your policy like comprehensive or collision. By using these strategies, you can start saving money on car insurance before you know it.

How many people notice that after the initial purchase of your auto insurance, your premiums start to rise? This can be frustrating, but a lot of people just ignore the small jumps and continue to overpay for car insurance. Even though car insurance is a necessity, that doesn’t mean you need to waste more money on it than it is really worth to you.

So, you may be asking yourself, how can I save money on auto insurance? Car insurance can be lowered to save you money, and it is easier than you think. Depending on where you live, your driving record, and the type of car you drive, your savings will vary. Here are a few tips on how to lower your premiums and save a lot of money each year.

Shop Around

You will find that different car insurance companies offer different prices, so it is a good idea to check out your options. Comparing the prices of at least three different companies will help you get a good idea if what you are currently paying is competitive or if there are better options. As you look at companies, you will also notice that there are different types of insurance companies. There are independent agents that sell several policies from several insurance companies, agents that sell from just one insurance company, and a growing number of insurance companies that only sell policies over the phone or the internet.

As you research all these different companies, make sure not to base your decision just on price. Reputation and word of mouth are still an important resource for such an important purchase. You can also contact the insurance department in your start to see what consumer complaints there may be with a particular company. You may also see discounts like if you went to driving school. Doing your research will help you make an informed decision on a company that needs to support you in the event of an accident and not give you the runaround.

Increase Your Deductible

When trying to lower your premiums, one of the best places to start is by lowering your deductible amount. Although it will cost you more if you are in an accident at that time, you can actually end up saving money if you stay accident-free by paying less in premiums. It is a bit of a gamble, but if you aren’t in an accident for several years, consider how much you are paying each year to have that lower deductible versus what the cost of the higher deductible will be at the time of the accident. If you find that you are paying a lot to have that lower deductible, it may not be the savings that you think it is.

Purchase What You Need

Consider the type of car you have and then buy insurance that is appropriate. If you have a brand new car, you will want more comprehensive coverage since you are required to for car loans. Also, since it has a higher value as a newer car, you want to make sure that you have comprehensive insurance to replace the vehicle that you are still paying for in the event you are in an accident.

If you own a car out right and it does not have as high a value, you may want to either decrease or forego the comprehensive insurance. If the value of the car doesn’t warrant the amount of money you are spending on the insurance to replace it each year, that is a savings right there. If it makes you nervous not to have that safety net, you can always put the money you are saving into a savings account just in case you do get in an accident and need to replace the car.

Combine Policies

As you continue to wonder, how can I save money on auto insurance, you may want to consider bundling your policies. You can sometimes get a discount if your auto insurance policy is with the same company as your homeowners or renters insurance. In the insurance industry, this is called “multilining” which means combining your policies with just one company to save money.

Car insurance is a bigger risk for an insurance company than a homeowner’s policy since you are more like to get in an accident than having a catastrophic event damage your home. When you combine these policies, you are reducing your risk to the insurance company.

Insurance companies make money off of multilining. The more lines of insurance that they have, the more willing an insurance company will be to give discounts.

Low-Mileage Discounts

Normally, low mileage is considered between 7,500 and 15,000 miles a year, although it can vary with each insurance company. For those that do not drive over this range, it is always a good idea to ask your car insurance company if they have a low-mileage discount, especially if:
• You are retired
• You have a home based business
• You no longer drive to work because you joined a carpool or you live close enough to walk or bike

Tracking Devices

Good drivers may also be able to save money with the new car insurance policy called MyRate from Progressive. The company is able to monitor your driving habits with an attachable wireless device. It can monitor your distance, driving habits like speeding and sudden stops, and your most frequent travel times.

According to Progressive, you can save up to sixty percent after the first year, even though you will be giving up some privacy for this discount. However, there are some states like New Jersey where your rates can increase up to nine percent if the company isn’t happy with your driving habits.

Have Good Credit

There are a lot of benefits to establishing a solid credit history and that includes lowering your insurance premiums. It is no secret that insurance companies check out your credit history when providing you with an insurance quote. This is based on the theory that a person who can manage their bills effectively will make fewer claims. To make sure that your credit history is correct and that incorrect information isn’t driving up your auto insurance premiums, make sure to check your credit regularly for accuracy.

Look for Other Discounts

It has become common for companies to offer additional discounts to policyholders taking driving lessons.
• Taking a defensive driving course
• Have a 3.0 GPA
• Have taken driving lessons
• No previous accidents or moving violations
• Driving fewer miles than the average motorist per year

Remember, just because a company will give you discounts if you took driving lessons from Arrow Driving School, it doesn’t mean that they will have the lowest price. The final price of another company may be less, even if they don’t offer any discounts.

While most people are happy to keep paying their car insurance without much thought, it isn’t necessary to continue to pay more for it than you need to. If you are willing to spend a little time and do a little research, it is easy to see which companies will give you the best rate and discounts or what you may be able to change in your policy to reduce your premium.

When you are asking yourself how can I save money on auto insurance, remember to it is worth taking a little time to consider all of your options and see what discounts you can use. Call Arrow Driving School to book your lessons today and help to lower your auto insurance premiums in the future.