Tips to Decrease Auto Insurance Premiums

By Joey Hudson in Insurance on April 16th, 2008

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by Joey Hudson

In many states, automobile insurance is not just an option; but a requirement. Even if it is not mandated by law, automobile insurance is a good idea, especially in our litigious society. When shopping for automobile insurance, you should compare as many quotes as you can in order to get the best coverage for your money.

Annual costs will depend on driving record, the records of additional drivers, frequency of use and mileage incurred annually. The cost will also be determined by the make and model of the vehicle being insured. There are several methods for finding the best value on your automobile coverage.

Choose a vehicle that is not likely to be the target of car thieves -Some cars are a target for theft. You can cut down on your automobile insurance if you choose a car that is not one that is an obvious target. If you do have a car that is a target for theft, installing an anti-theft system can cut down on your automobile insurance premium costs considerably.

Raise the deductible - The deductible is the amount that you have to pay out of pocket in case of an accident or theft. The higher the deductible, the lower the insurance premium. Most insurance companies will quote a low deductible as if they are betting on you getting into an accident. Bet on not getting into an accident, raise the deductible and lower your monthly premium costs.

Pay yearly - If you pay for your insurance on a yearly basis, instead of monthly or quarterly, you can usually get a discount. There is usually a fee associated with paying for the automobile insurance on a monthly basis. Paying yearly can save you about $100 a year.

Good academic grades - Teenagers or college students covered under your policy can help lower premiums by maintaining good academic standing. Most companies offer a lower premium for students who earn a “B” average, or better, and provide added incentive for kids to succeed academically. This could decrease the premium by hundreds of dollars annually.

Avail of safe driver discounts - Avoid moving violations for a year and this may qualify you for a safe driver discount in some states. In other states, two years without violations is required to qualify for the Safe Driver discounts. Maintaining a clean driving record can save hundreds of dollars in premiums on an annual auto insurance coverage.

Eliminate unnecessary collision coverage - If your car is only worth a few thousand dollars, consider eliminating collision coverage. When a car is stolen or is involved in an accident, the cost of replacement of the car will not be covered. This can be well worth it if the car is of low value. Know your liability and safety record when choosing to add collision coverage to the policy.

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