Keep your driving record as clean as possible. Speeding tickets and accidents can really cause your insurance premiums to run high. If you already have a check against your license, see if you can lower your insurance premium by taking a driving course.
A lot of consumers believe that insurance premiums routinely drop at age 25. The reality is that premiums steadily decrease once a driver hits 18, so long as he doesn't have any accidents.
You must have the state legal minimums; however, there are many optional protections that are available. Even though these may cost you a bit more, the peace of mind they will give you will be worth it. Uninsured motorist coverage will protect you in the event that you are in an accident that involves either a hit-and-run or someone who is not carrying insurance.
Reconsider buying after-market add-ons for your car that you do not really need. Custom rims and a top of the line stereo system are not really necessary for your car. Insurance will rarely reimburse you for any of the tempting luxury extras added to your vehicle after purchase in case of damage or theft.
Save money by raising your deductibles. While this means more money spent up front if you are have an accident, it will save money on your premium. In order to make this strategy work, you should set aside enough money for the deductible in case of an accident. The higher you set the deductible, the lower your insurance premiums will be.
Before moving, consider the possible changes in the cost of insurance. Some areas cost a great deal more than others. Areas that have high crime or are dangerous for other reasons have higher rates, while less-dangerous areas, such as suburbs and rural areas, usually have lower rates.
Don't buy your teen a car. Have the teenager use a family car instead. The cost of adding a new driver to your current insurance plan is cheaper than having to secure a new policy. There are discounts that are often offered by the insurance companies for teens that maintain good grades.
Take an inventory of all of them, and analyze whether you are eligible to save a bit of money. You can save a lot of money once you total up all the discounts for which you are eligible.
If there are drivers that are listed on your policy who don't drive your car any longer, have them taken off as soon as possible. You want to take the additional driver off, because you are most likely paying more to have them covered.
Inform your insurance agent of comparable rates from other companies. Oftentimes insurers will offer you more competitive premiums in order to keep your business.
Consider what a new car will cost to insure before you make the purchase. It is important to note that car choices with high safety ratings will ultimately offer cheaper insurance rates. On the other hand, owning a sports car will increase your rates. This cost difference should be taken into account when you decide on a car.
As you read earlier, there's a lot you can do to reduce the price you pay for auto insurance. Your driving record, the areas you drive in and how frequently you drive are some factors in your control. By understanding how these factors can increase or decrease your driving risk in the eyes of your insurance company, you may be able to reduce your rates.
