Nine Tips for Saving on Auto Insurance

1.  Shop Around

Prices vary from company to company.  Get at least three price quotes by calling local insurance agents and checking on the Internet.

2.  Compare Insurance Costs Before You Buy a Car

Insurance costs are based on the value of the car you are insuring, the cost of repairing your vehicle, its safety record and the likelihood of theft.  To help you decide what car to buy, check current reports provided by the Insurance Institute for Highway Safety, www.iihs.org.

3. Increase Your Deductible

Deductibles are the amount you pay before your insurance policy kicks in.  By increasing your deductible from say $200 to $500, you could substantially lower your auto insurance premium.

4. Drop Coverage on Older Cars

Do you know how much your car is worth?  A good rule of thumb is if your car is worth less than ten times the annual premium, it may be cost effective to drop the collision and/or comprehensive coverages from your policy.  Check used car valuation guides such as Kelley’s Blue Book or others, and review your coverage at renewal time with your insurance agent.

5. Combine Auto Insurance with Property Insurance

Many insurance companies provide a discount for carrying two or more policies with them.  Consider combining your auto policy and your home or renters insurance with the same company.

6. Maintain Good Credit Record

Insurance companies are increasingly using credit information to price auto insurance policies.  Protect your credit standing by paying bills on time and keeping your credit balances low.  Check your credit record on a regular basis and have errors corrected promptly.

7. Avoid Duplicate Coverage

If you belong to a road service club, you may not need towing coverage on your auto policy.

8. Low Mileage Discounts

If your annual mileage is less than the average driver, you may qualify for a low mileage discount.  Drivers who car pool may also qualify for a discount.

9. Ask About Other Discounts

Accident-free drivers, good students and long time policyholders are often rewarded with discounts by their insurance companies.  Ask your agent about available discounts.