How I and you can save a bunch of money on car insurance

Keep your driving record clean

Read my other article on avoiding getting nailed for speeding. For other traffic incidents, try to follow to law of the road and thus minimizing your risks of getting a ticket. Just one small ticket can have the effect of raising your insurance premiums by 20%. Driving records however do not include parking tickets in case you were wondering.

Drop unnecessary coverage

If you’re driving an older car, you might want to consider dropping your comprehensive and/or collision coverage entirely. Do the math. If your car is valued at $1200, do you want to pay an extra $300 every year. (this is just my guestimate) Or if you have a car you are not currently driving call the insurer and change your coverage to what you need it. For eg its winter and you have your fancy sports car in the garage, you could probably remove the liability portion.

Keep your Credit History report clean

Insurance companies use information from the credit bureaus to factor in the prices for insurance. Lower scores will almost certainly raise your premiums.

Multiple Auto discounts

I can’t speak for all insurance companies, but we get a nice “multi-line” discount for carrying multiple policies with a single company. We actually have two car policies, our homeowner’s policy, a personal articles policy (for my wife’s engagement and wedding rings) and an umbrella policy all with the same company.

Raise your deductible

If you have the money to pay for it and you are a good driver, increase your deductible.

Ask about other discounts

You might qualify for discounts for being a good student, accident-free, renewing your policy, driving relatively few miles each year, taking a defensive driving course, etc. Be sure to talk to your agent and get what you have coming to you.

Shop around

Assuming that you’re doing everything else right, another great way to save money on car insurance is to comparison shop. You can either call around to local agents, or check an auto insurance comparison website. Whatever you do, be sure to buy from a reputable company so you won’t run into any problems if/when you file a claim.

So there you have it… Six simple tips for saving money on car insurance. If you have any further suggestions, please be sure share them in the comments.