There is no way to get around it. If you are a driver, you need auto insurance. In fact, it is illegal not to have it if you are a driver. Here are five quick ways and ideas to save money on your annual premium.
1. Make sure all qualified discounts are applied. There are several discounts available, dependent on the state you live on. For example, if you are older, you may qualify for a discount if for taking a defense-driving course. Also, if you are twenty-five and under, you could qualify for the good student discount – even if you are in your Masters or Doctorate program. It is possible to even get it extended to vocational schooling, but that is dependent on your insurance company.
2. Switch the drivers around. I wrote how our insurance went down about $510 a year just because I started driving the car that was least expensive to insure. This is because I had two tickets on my record from two years prior, so I was considered a costlier person to insure. So by simply telling the insurance agent that I would drive our Toyota Yaris instead of our other car, the rate went down significantly. This will work with teen drivers too. Your insurance will be more affordable if they drive the older, paid off car rather than the new car (unless your older car is a sports car).
3. When buying a new or used vehicle, stay away from special editions. When you buy a sports edition or luxury edition of a car, even if you buy it used and at a great price, your car insurance rates will go up. Depending on the car, this increase can be very minor or significant. It is always wise to check how much your auto insurance will be before you purchase a new or used vehicle. Agents are available to add up the insurance costs of potential purchases.
4. Get rid of a car. The trend of becoming a one-car family is spreading. It is definitely a change of life, but many have been able to do without an extra vehicle. This is an extreme situation for many, but it is always an option to consider if you get creative.
5. Shop around and combine. If you have been with your insurance company for a while, it may be time to see if there are better rates available. Getting a lower auto insurance quote can be used to price match with your current company. It is not a guarantee that they will lower their price, but it is worth looking into, since no company wants to lose a customer. Also, combine your home and auto insurance together to save money.
How do you save money on car insurance?