How to Save on Car Insurance

By Tom Martens

Insurance is something every driver has to have, and it's a big item in most people's monthly budgets. The good news about car insurance is, there are many ways you can reduce your monthly premiums. If you own more than one vehicle, for example, or if you also insure your life or your house, you might get your insurance company to "bundle" your coverage. Bundled coverage provides all your policies, or at least several of your policies, from the same company. Understandably, insurers offer discounts to encourage you to get as much of your coverage as possible from them. Not only do bundled policies cost less, it's also easier to manage your claims and billing by doing all your business with just one company.

Another easy method of lowering your auto insurance premiums is choosing a higher deductible. Raising your deductible always saves you money, but there is a catch: You absolutely must have the funds on hand to cover your deductible if you suffer a loss.

It's always a good idea to get premium quotes from more than one insurer. Companies frequently offer you a better deal once they learn you are checking out going with their competition.

If you belong to a special class, like students, senior citizens or an organization or club, check to see if the insurance provider offers discounts or deals. Drivers over 25 and women also tend to get better deals on their car insurance premiums, too.

Another way to save money on your car insurance is to take a basic or defensive driving course. You must prove that you took and passed the course in order to receive a discount on your insurance premiums. Many qualified insurance providers offer discounts for successfully completing these driving courses because it shows that you are serious about driving safely and responsibly.

Where you keep your car at night also has a big impact on how you pay for your auto insurance. Drivers who live in small towns pay less than drivers who live in big cities. Drivers who live in low-risk areas pay less than drivers who live in high-risk areas. Every company rates risk differently, so ask around if you are paying extra on your policy just because of where you live.

Own a sports car? Consider trading it in. Sports cars demand higher insurance premiums for the simple reason that they are much more often crashed or stolen. But if you buy a car that is not considered high-risk, you will have a much easier time negotiating a lower rate. Contact your agent for details.

Finally, ask your provider if there are any discounts they can offer. Many providers have their own car insurance discount programs that can help you save money. Regardless of your car insurance needs, contact a qualified insurance provider. They will be able to help you find the right coverage for your car. - 29952

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