save on car insuranceThe price of auto insurance premiums can vary by hundreds of dollars, depending what type of car you have and who insures it. Your insurance quote depends on so many factors that there is not one universal answer here. However, there are a few things you can do to make sure you are getting the best cheap car insurance available. You’re in the driver’s seat when it comes to lowering costs, so here are 9 ways to save on car insurance.

One: Shop Around

Get at least three price quotes, which you can do by calling companies directly, or researching the information online. Prices can vary drastically from company to company, so it pays to shop around. Your state insurance department can also provide comparisons of prices charged by major insurance companies in your area. There are different kinds of companies out there. Some sell through their own agents, and some sell through independent agents. Each one offers policies from several different insurance companies. Also, a growing number of insurance companies are selling directly to consumers by phone or online, and it only takes minuets to get a quote. After you get a few quotes, ask friends and family members for their recommendations. Check your quotes with the state insurance department, and then work with a professional who will take the time to answer all your questions.

Two: Compare Insurance Costssave on car insurance 2

Auto insurance premiums are partly based on the value of the car, the cost to repair it, the car’s overall safety record, and the risk of theft. Before you buy a new or used car, or purchase insurance, check on what it will cost. Insurance companies will offer discounts for any features on the car that will reduce the risk of theft or injury, like an ignition interlock device. It is also a good idea to check safety rankings of the specific model of car you want to insure. The Insurance Institute for Highway Safety has a Top Safety Pick list that is easy to use to get this information.

Three: Higher Deductibles Equal Lower Premiums

Your deductible is the amount you pay before your insurance policy kicks in. Most companies have a variety of deductibles you can choose, from zero to $5,000. When you choose a higher deductible, it can significantly lower your costs, month to month, and overall. However, be sure you have enough money set aside to cover that deductible should you need to file a claim.

save on car insurance 3Four: Reduce Coverage For Older Cars

It is a good idea to review your coverage each time it comes up for renewal, if not before. Many things can change, in your life and with the insurance industry. One example is if your car is worth less than 10 times the premium. If so, then the coverage you are paying for may not be cost effective. If this is the case, then think about dropping collision and comprehensive coverage. To research what your car is worth, there are many online sites that can help, like Kelley, National Association of Auto Dealers, and TrueCar.

Five: Take Advantage of Low Mileage Discounts

Very often, insurance companies will offer discounts if you drive less than the average number of miles per year. You can get even lower miles per year if you use public transportation or car pool to work. Re- evaluate your mileage usage every 6 months, to make sure you adjust your actual mileage consumption.

Six: Bundle Your Homeowners and Auto Insurance

Combining two or more types of insurance is a good way to save money. It shows the insurance company you are loyal, and they will reward that loyalty. Even so, shop around for multi-policy discounts, and see which companies that offers the best discount.

save on car insurance 4Seven: Maintain a Good Credit History

There are many benefits to a solid credit history, one of which is lower insurance costs. Almost all insurance companies will use credit information to quote you a price for auto insurance. This is because research has consistently shown that people who are good at managing their credit are a lower risk for accidents, tickets, and other claims. Check your credit score on a regular basis, at least every six months, and make sure everything on it is accurate and up to date.

Eight: Ask About Group Rates

You may be able to get a lower rate by going through your employer to become part of a group plan. There are also other groups that qualify for discounts, through professional, business and alumni associations.

save on car insurance 5Nine: Pursue Other Discounts

There are many discounts out there that you may not have heard about, or that are new. Taking a defensive driving course, having a clean record and even a good report card are all possible ways to get a discount on your auto insurance.

The most important thing to remember is that the key to getting the best cheap car insurance is not just one thing, like discounts. The final price it what matters most, so take into consideration all the factors that go into the cost of your auto insurance, review them every six months, and then adjust. This is the best way you can save on car insurance.