10 Auto Insurance Savings Ideas

Auto insurance is one of those necessary items that many people don't realize they can save money and still get the right coverages. So how do you go about lowering your auto insurance costs? Here are 10 money-saving tips.

1) Raise your deductibles. Your deductible is the amount of money you have to pay before your insurance coverages kick in. The lower your deductible, the higher your premium. You could save a lot of money just by increasing your deductibles on collision and comprehensive coverage.

2) Compare quotes from different insurers. Auto insurance companies base their rates on several factors, and because of this, rates vary quite a bit from company to company. You could save hundreds by doing some comparison shopping for the lowest rate. You should get at least three different quotes for comparison. An online insurance comparison Web site is a convenient place to start.

3) Drive fewer miles. One of the factors that affects your rate is amount of miles you drive annually. Many companies offer a discount for lower mileage drivers.

4) Maintain good credit. This is controversial, but the fact is many auto insurers evaluate risk against credit ratings because they say that there is a correlation between good credit and good insurance risk. The better your credit score, the better rate you may receive.

5) Stay a safe driver. Driving safely means lowering your risk of a collision -- and a claim. Too many claims can raise your auto insurance costs. Some insurers will reward accident-free drivers with a good driver discount as well.

6) Keep a clean driving record. Along with being a safe driver, following traffic laws will ensure that you avoid traffic tickets, which can raise your rate considerably.

7) Combine your auto and home insurance. Most companies will provide a discount on your rate if you insure your home and car with the same company.

8) Pick the right coverages. Too much coverage for your situation may cause you to pay a higher premium than necessary. On the other hand, if you cut your coverages too low you could end up paying a lot if you have a claim or are at-fault in a collision. Think about your limits of liability carefully and discuss with a qualified agent if you have questions.

9) Choose your car carefully. If you are going to buy a vehicle, look into the costs of insurance. Different types of autos get different risk ratings. If you find a vehicle you like, get some auto insurance quotes.

10) Take advantage of discounts. Most auto insurers offer a variety of discounts. Make sure you are getting all of the discounts that you can. You could save money for being a good student, a senior driver, having safety features and anti-theft features on your vehicle and more.