Seven Savvy Savings Tips When Buying Auto Insurance

1. Raise your deductible. Your deductible is the amount you pay when you make a claim before your insurance company pays. The disadvantage of raising your deductible is that when you do make a claim, you’ll pay more. The advantage is that your annual insurance costs go down. You can raise your deductible on the comprehensive and collision sections of your insurance policy.
2. Drop your collision and/or comprehensive insurance on older autos. If your car is not worth much to begin with, then it may not be worth paying for collision and comprehensive insurance. That is because the amount you pay for the deductible plus the amount you pay for the insurance may be more than the value of the car itself. An auto dealer or Kelley Blue Book can help you determine the value of your auto.
3. Buy a "lower profile" vehicle. Part of what determines the cost of insurance is the kind of vehicle you drive. Some models are common targets for auto theft, while some models are just more expensive to repair. Generally these vehicles will cost more to insure. It pays to do your research before you buy.
4. Take full advantage of low mileage or distance discount rating. Some insurance companies give discounts to people who drive less than a pre-determined number of miles each year or drive certain distances to and from their place to work.
5. When you move, consider the cost of insurance. Yes, the cost of insurance varies from place to place. Some areas can be considerably higher. Make sure to keep your insurance broker informed, as this could save you money.
6. Make sure the information about your vehicle is correctly listed on your policy. You would be surprised how many inaccuracies show up on a policy, especially with so many model names sounding very similar. Insurance rates vary depending on model, and you could be paying more for a car you’re not even driving! Other common errors include the wrong mileage and mistaking a four-door vehicle for a two-door (both of which can also affect insurance rates).
7. Research the bevy of discounts available. Insurance companies reward good drivers. Insurance companies also reward people who insure both their homes and cars with them. This is called a multi-policy discount. Other discounts available may (depending on your insurer) include multiple vehicles, anti-theft devices, retirees, driver education, abstainers from alcohol, age, and distance to university/colleges for students.