Good credit score
One of the most effective ways of lowering the cost of your auto insurance is by having a good credit score. In the insurance world, a responsible credit card holder is usually a responsible driver (it’s been conclusively proven here) so one’s credit score will be considered to determine the cost of their policy.
Safe driver discounts
Yes, being a safe driver reduces the cost of your auto insurance. It sounds obvious but being a safe driver certainly pays off. Many insurance companies want customers who are diligent behind the wheel and will reward those accordingly – even after the policy has been written.
Take a defensive driving course
Depending on the state you live in and the insurance company, you can take and apply a defensive driving course to lower the cost of your auto insurance. It also doesn’t hurt to absolve yourself of bad driving habits to avoid a potential accident in the future.
Low mileage discounts
A low mileage driver typically drives between 7500 and 15000 miles per year. If you fall in that limit, it would certainly be worthwhile to ask your insurer about a low mileage discount. If you’re shopping around, make sure you inquire about this discount before signing up for a policy.
Save money by combining with a homeowners or renter’s policy
If you have the opportunity to combine policies with a single company, do it! You can stack discounts which will save you money and it will also simplify your life – having all of your policies with one company will give you one less thing to worry about if you need to file a claim.
Increasing your deductible lowers your premiums, which means you’ll pay less on your monthly bills. This works really well if you’re looking for an easy way to take a decent amount off of your bills.
Reduce collision coverage on low value cars
If you own a car with high mileage and a decently low book value (compared to when you purchased the car), it may be time to consider reducing your collision coverage. A good way to figure out if you should drop your collision coverage is to consider if a significant repair to your car would be the last straw to get you to replace it entirely.
Quoting at least 2 weeks ahead of renewal date
The same logic that applies to good having a good credit score applies to getting a quote for your auto insurance more than 2 weeks ahead of your renewal date. Your diligence will show insurance companies that you are responsible, which as we’ve learned is always a plus.