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How to Save Money on Car Insurance

Monday, 03 Jan 2011 04:19 PM

Are you feeling stressed by the growing burden of auto insurance? Insurance on automobiles is growing at a rate much faster than inflation, and if you do not choose it prudently, you will end up shelling out a hefty amount. Here are some tips that can help you save money:

1. Avoid flashy cars and go for basic cars that serve your purpose. High-end cars will not only cost more, but they also mean you will have to pay higher insurance premiums. Low-end cars, on the other hand, will attract lower insurance premiums, thereby helping you save a considerable amount of money.

2. Visit websites that provide quotes from various companies and compare quotes online. Finding the cheapest car insurance is not difficult anymore. However, keep an eye out for other factors like deductibles to get the best deal. Online tools simplify the process, and help you save money.

3. Opt for policies that have a high deductible, which is part of the policy that you are required to pay before the insurance company settles your claim. The higher the deductible, the lower the premium. The average deductible on auto insurance hovers around $250, but if you can manage to take it to $1,000, you can save a lot of money.

4. Pay your car insurance premium in lump sum, instead of opting for  installments. If you pay your insurance premium up front, you can avoid paying processing fees that insurers usually charge.

5. If you bargain properly with your insurance company, you can potentially save hundreds of dollars. Believe it or not, if you have a son or daughter going to college who gets good grades, you could get discounts on car insurance.

6. Purchase your auto insurance from the company that you have taken other policies from. Most insurers give handsome discounts to customers holding multiple policies. Many companies provide discounts for safe drivers, vehicles with safety features, and many other such factors.

Bear in mind that choosing the right insurer is essential for getting cheaper car insurance. Make sure you do your research before you buy insurance for your car. However, even if you think you chose the wrong insurer, you can switch to another one later on. Remember, the better informed you are, the higher your savings will be!

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