10 Ways to Save on Car Insurance

Auto insurance payment can be quite expensive, especially if you have a new car or a bad traffic history. Being mandatory in most states and with quite expensive payments, auto insurance can cost you upwards of $1,000 a year. However, I have managed to cut my costs to only $550 a year by following some simple steps.

You can save money by using these tips as well.

1. The most obvious way to save money is by using the safe driver discounts that insurance companies provide. In order to be part of this program, you have to have a safe driver record (1 accident/ ticket in 3 years is the benchmark). This can save you over 150-20% on your payments.

2. Look for reductions based on profession or college major. For example, science majors receive substantial benefits.

3. Lower your limits of liability. If you are short on cash, consider the legal minimum. In California, its 15,000/30,000/5,000

4. Consider how likely you are to take advantage of a tow option, or extended tow option, and eliminate unnecessary options. Also, eliminate medical expenses. You probably won’t need it.

5. Most car insurance companies offer only a bare minimum of about 20 dollars for rental reimbursement. This might end up costing you a substantial amount of money, but without the merits.

6. Reduce your commute. Less mileage means less chance of an accident. Less accidents means less premiums.

7. Personally, I use AIS brokers for my insurance. They just removed their broker fee of about $70. Good drivers will be able to purchase Mercury Insurance.

8. If you are signing up for insurance online, try out a few websites and go for the cheapest quote. Remember, sometimes monthly payments might seem like a great alternative, but insurance companies can add additional charges for such payments.

9. Pay off your car! If your car is financed or leased, you will find that the insurance bill is quite expensive! That’s because people tend to be less careful with cars that are financed or leased. Also, go for safer cars. Some cars tend to be attributed with safer driving habits.

10. Don’t stick with one insurance provider! Sometimes, companies promote their services with low cost alternatives! Remember, if you cancel your current insurance, you are pro-rated for the remaining time. Switching will save you big bucks.

These are some important factors to consider when purchasing insurance. If you feel like I left something out, let me know!