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8 Tips to Save Big on Auto Insurance

Save money on car insurance

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.

Higher deductible

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.