Ways to Save On Your Auto Insurance

Owning a car is an expensive privilege that can easily get more costly when you’re faced with fluctuating gas prices and unexpected repairs. That’s why you must be diligent about finding ways to save money in your automotive life. First stop is your auto insurance policy.

Get multiple quotes

Knowledge translates to savings when it comes to an auto insurance policy. How do you know if your policy is the most cost-effective option if you haven’t compared policies and premiums from multiple insurance companies? Now is the time to do your homework and get quotes from several companies, advises U.S. News & World Report writer John M. Vincent — you might discover your current policy is the best option, but it never hurts to make sure. A little research now might save you a lot of money down the road.

Review your policy

Every year, you’re adding miles to your car, and what once was a vibrant vehicle may now be less of a showstopper. If your car is a shadow of its former glory, it’s time to review the amount of coverage you’re paying for, suggests NerdWallet writer Barbara Marquand.

“If you’ve got a clunker, it might be time to drop collision and comprehensive insurance, which pay for damage to your vehicle,” she writes. “If your car is worth less than your deductible plus the amount you pay for annual coverage, then it’s time to drop them. Collision and comprehensive never pay out more than the car is worth.”

Track driving behavior

Did you know some insurance companies reward good driving behavior? Find out if your insurance company offers discounts or rewards for stellar driving behavior. If it doesn’t, it might be smart to switch to a company that does offer the perk. After all, if you’re a safe driver, shouldn’t you be rewarded for your driving skills?

Make the grade

Good grades can translate into auto insurance savings. If your teen is getting behind the wheel, make sure he keeps his grades up at school, and if you’re eager to save money with your grades, look into driver education courses for yourself.

“Depending on the insurance company, drivers may be able to get a discount for taking a car control or defensive driving course from a performance driving school, such as those found at motorsports facilities,” reports Vincent.

Be a savvy shopper

Along with safety technologies, fuel efficiency ratings, reliability scores and must-have features, factor in insurance costs when you’re shopping for a new car. If you want to save money on your car insurance payment, you should probably focus on compact SUVs or minivans that are priced much less than luxury models, advises Marquand.

Bundle plans

If you carry an insurance policy on your apartment or home, you can save by folding in your auto insurance policy. According to Vincent, bundling your policies together may net savings of at least 10 percent. You can increase insurance savings if every driver and every vehicle is under the same package too.

There are many ways to decrease the amount you spend on auto insurance. With a little research, savvy shopping and ongoing safe driving habits, you’ll be on the road to major savings.

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