When shopping around for car insurance, knowing how to save money on auto insurance is essential. The annual auto insurance premium can take a big chunk out of your family budget, especially if there are several family members on the same auto insurance policy. But the first question to ask yourself is “How much car insurance do I need?” Fortunately, there are some ways to help to reduce your car insurance premium without reducing your coverage.
Depending on your situation, there are several possible ways to save money on auto insurance:
- If you have several cars in the family, pick one, and commit to drive it less often. If you can keep the mileage on a vehicle to fewer than 7,500 miles per year, you may qualify for a discount on that car. Likewise, you can keep one car as a pleasure people. Pleasure only vehicles are often insured at a lower rate than cars used for commuting.
- Typically, most insurance companies offer substantial discounts to people who insure more than one vehicle with their company on the same auto insurance policy. Check this out, as it can be a valuable source of family savings.
- Most insurance companies offer discounts to drivers who have clean driving records. This means no accidents or violations. Requirements do vary from state to state and from company to company, but it is well worth checking. Nurture and grow your driving record — it is one of your biggest assets that help you save money on auto insurance.
- Encourage your teenager to be a straight A student. Auto insurance discounts are often offered to high school or college kids who are in the top 25 percent of their class or who are on the honor role.
- Many auto insurance companies charge higher premiums to smokers because they are at a higher risk of an accident. This means kicking the habit can benefit more than your heart and lungs.
- If you live in a large city, but own another home outside the metropolitan area and are located at the rural home about half the time, you may be able to list that rural address as the address where your car is garaged. This will save you money, since insurers often charge more for automobiles that are garaged in large metropolitan areas, as opposed to rural locations.
- Driving a vehicle equipped with safety equipment is virtually guaranteed to save you money on car insurance. Discounts are often offered for anti-theft devices, safety restraints, and alarms. Also check out which vehicles are the most difficult to steal, because driving one of these can help you save money on your auto insurance. Check how car insurances are calculated.
How to Save Money on Auto Insurance
Overall, asking for discounts, shopping around, and maintaining a good driving record are the best ways to save on auto insurance. If you find a good deal, you can always ask your existing carrier if they can match or beat the offer as well. Doing a bit of research and taking the right steps can ultimately save you hundreds a year, and thousands over your lifetime.