5 Ways to Cut Your Auto Insurance Bill
Increase your deductible
This can bring big savings, but make sure you have the money to cover the higher deductible in case you have an accident. Raising a $200 deductible to $500 can cut the cost of collision and comprehensive coverage by 15 to 30 percent, according to the Insurance Information Institute. Raising it to $1,000 can save 40 percent or more.
When buying a car, compare insurance costs
Many factors go into the cost of coverage, including sticker price, repair costs, safety ratings and likelihood of theft. Ask your insurer for information on costs for specific vehicles, along with discounts for features such as anti-lock brakes and anti-theft devices.
Consider reducing coverage on older vehicles
It may not be cost-effective to carry collision and/or comprehensive coverage on cars worth less than ten times the amount you would pay for that portion of your coverage, the Insurance Information Institute says. But make sure you have the resources to cover repairs or buy a replacement vehicle. As an alternative, you might consider keeping your coverage intact but raising your deductible on an older vehicle.
Drive safely
Obeying speed limits and avoiding sudden starts and stops can save gas and insurance costs. Some insurers offer discounts for drivers who have not had an accident or a moving violation for three years.
Grab discounts
You may qualify for a reduced insurance rate by buying your homeowners and auto coverage from the same insurer. There are also discounts for low-mileage drivers and students with good grades, in addition to those for safe drivers and vehicle safety features, among others.
Take the next step
Increase how much you're saving. A small step today may make a big difference in the future.
