Car insurance is required by law to operate a motor vehicle in every state but it can become expensive. There are some things you can do to keep your insurance rates down including keeping your driving record clean, keeping your deductible high and only carrying the minimum liability insurance when you can.
1. Stay Out Of Trouble on the Road
The smallest things like going five miles an hour over the speed limit or driving around town with a broken out tail light will get you pulled over, a citation and a conviction on your driving record. Every time you have a conviction, the courts report this to your states DMV. When a citation is reported to the DMV, it goes onto your driving record which is what insurance companies look at when they decide how much you should pay for your auto insurance. Stay out of trouble on the road and your insurance rates will stay low.
2. Keep Your Deductible As High As Possible
The most expensive part of full coverage auto insurance is the deductible. When you go from no deductible or a low deductible to a high deductible, you can save up to $100 a month on your policy. If the vehicle is financed, you need to check with your bank to see what the minimum deductible is to satisfy the banks requirements. The fact is the higher the deductible, the lower the premium.
3. Avail New Car Discounts
Newer cars have newer technology that both prevents accidents and protects the occupants during an accident. It is because of these new features like side impact air bags, crumple zones and blind spot detectors that insurance companies are beginning to offer discounts for customers who have vehicles that are considered newer models. These models are usually within 3 years old but every insurance company will have different policies regarding what is considered a “new” car.
4. Drivers’ Ed All Over Again
You may feel like you are 15 all over again but taking a defensive driving course is inexpensive itself but when you participate in a course like this, you can save up to 10% on your auto insurance premium. Insurance companies know that when you are a defensive driver, you are paying attention to the drivers around you; therefore, you are less likely to be involved in an accident than a driver who has not completed one of these courses.
5. Drop Down To The Minimum
The main way to save money on your auto insurance is to hold only the minimum amount required by your state law or your financial institution that carries the lien on your vehicle. If the vehicle is not financed and is valued under $5,000, it is a good idea to drop the full coverage insurance and go down to your state’s minimum. The state minimum will not cover your own car to be replaced after an accident that is your fault, but it will keep you from being sued if you are considered at fault in any accident.
Car insurance is a necessity for anyone who owns a vehicle. While insurance can be expensive, there are ways to cut the coverages you don’t need while adding the ones that you do. When you use just a few tricks to keep your premium low, you can save hundreds of dollars over the course of your policy.
Matthew Varnasdale is an insurance consultant. He enjoys seeing how the internet has transformed his industry and increased savings for everyone. His articles mainly appear on personal finance blogs. Get a free quote for car insurance from InsuranceTown.com.