Saving Money on Car Insurance

Auto insurance is a necessity if you own a car. In most states it is also the law, simply to protect people from losing everything in a lawsuit resulting from an accident.

Most insurance companies offer many ways to save on insurance premiums. Here are some essential cost-saving options:

• Safe Driver: If you have a clean driving record, congratulations! This is the best way to go to keep your auto insurance costs down.
• Safe Automobile: Many insurance companies will give discounts based on the safety ratings of a car. So if you’re looking for a car now, check with an insurance agent about what cars are considered low risk. Low risk cars not only have good safety ratings, they are mechanically sound and not in the top 10 list of vehicles targeted by car thieves. Also, statistically, sportier cars are more high risk. They are smaller, which can mean more serious injury and damage in an accident. And, well, they are so much fun to drive; they tend to invite riskier driving. So, think hard about the car you buy before you buy and check with an agent first if you want to save money.
• Safe Neighborhood: High-risk neighborhoods are usually urban areas where accident rates, vehicle theft rates and property damage rates are high. You can generally find out about these statistics on-line by checking for auto-related crime and accident rates in your area. This usually covers where you live and where you work. Be sure to inform your agent if you have extra safety measures at home or work, like a secured and covered parking area.
• Low Usage: If you don’t drive much, you’re much less likely to have an accident, right? So if you use public transportation, carpool or bike to work, let your agent know. It will likely reduce your rates.
• Look Good for the Sstatistics: If you’re female, married and over 25, you’re much more likely to get a good rate. Statistically, that’s just the way it stacks up. Single men and teenagers (boys in particular) are riskier. Now that’s not a reason to get married, but you do need to inform your agent if, say, you’re in a very long term relationship. Check to see if your insurance counts common law marriage or committed, long term partners.
• Young Drivers: For younger drivers, there is also often a good student discount, so have your GPA at the ready when interviewing agents.
• Deductibles: Deductibles are more of a gamble, but they are also a way to save money. What you need to ask yourself here is, “How much can I afford to pay monthly versus how much I will have to pay out of pocket if/when I do have an accident?” Remember, while your safe driving may not cause an accident, you are also dealing with everyone else on the road and the possibility of bad weather.

So to save some money, make sure you ask those important questions about discounts and give the agents you interview all the information they need to give you the best possible rate.