There are several ways you can save money on car insurance; with a little time and effort, you may be able to significantly reduce how much of your monthly budget goes to your coverage. Maintaining a clean driving record, a good credit score, and combining your auto insurance with other accounts can all help you save money on car insurance. If you're looking to buy a new car, research which makes and models cost less to insure. Find out about any discounts for which you may be eligible. Getting quotes from multiple insurers can also help to save you money while still giving you the amount of coverage you need or want.
You can save money on car insurance simply by driving well. If you have no recent accidents or traffic violations, most companies will reduce your premium by applying a good driver rate. By following the law and driving safely, your current insurance company may also drop the premium cost every year that you go without a ticket or accident. Car insurance companies may also base how much you have to pay on your credit report, especially when you first purchase insurance. Making sure to pay all of your bills on time every month can save you a good chunk of money by the end of the year.
In many cases, going with one insurance company for all of your coverage needs can help to reduce your overall payments including car insurance. Many companies that provide home, boat, motorcycle, or rental insurance also provide auto insurance. In some cases, your bank or credit union may provide the same services. Many insurers will grant a discount if you bundle all of your insurance together; besides being easier on your wallet, this can also simplify paying your insurance bill.
You can also save money on car insurance by purchasing the appropriate vehicle. In general, smaller cars, especially sporty models, are the most expensive to insure. Auto insurance companies have spent years researching what cars tend to get in the most accidents. When added to statistics by age and gender, this gives the company a good idea of the risk they are taking by insuring a driver and his or her vehicle.
In most cases, larger cars that sit low to the ground are the cheapest to insure. Before purchasing a vehicle, however, research the average insurance rates for each make and model you are considering. If you want to save money on car insurance, buying the car that carries the least risk for your insurance company is probably a good idea.
Many insurance companies offer their customers discounts based on their life circumstances. If you work for a large company, a local insurance agent may be able to offer you a discount. Members of the military and senior citizens are also typically eligible for a discount. Obtaining a joint policy with a family member, especially if both have a good driving record and credit history, can also help you save money on car insurance.
As with most things in life, shopping around for car insurance is typically the best option. Before making any decisions, make sure to get a quote from each company in your area for the same coverage. While many insurers may say they can save you money, they may not be talking about the same type of coverage that another company is offering.