Six Ideas for Cutting Your Auto Insurance Costs

Six Ideas for Cutting Your Auto Insurance Costs Car insurance is one of the most significant costs associated with owning a vehicle, sometimes outstripping even the cost of purchasing the car or truck itself. Every state in the United States requires drivers to carry a minimal amount of insurance, and many insurance companies make it easy to add additional coverage and customize your policy to fit your vehicle and budget. Insurance for your vehicle may be a necessity, but if you are trying to cut expenses it may also be one of the first things that comes to mind as way to save a little money. Here are some tips for getting your insurance costs down while still retaining the coverage required by law. Consider Insurance Costs Before You Buy   If you are buying a new vehicle soon, consider the cost of insurance before you even get to the lot. In general, vehicles with more safety features are less expensive to insure. Vehicles that have a lower value overall are also usually less expensive. For example, a sensible Toyota sedan is significantly cheaper to insure than a sports car.   Cut Some Coverage   If a brand new vehicle isn’t in the cards, you can also consider cutting some of the coverage on your current car or truck. In most area, vehicles are only required to carry liability insurance, so you can get rid of or significantly reduce the amount of collision coverage you have without worrying about running afoul of the law. Check the value of your vehicle in the Kelley Blue Book to find out if your coverage is equal to more than ten percent of the car’s current value. If it is, then it may not be cost effective to continue carrying collision coverage on the vehicle.   Combine Insurance Policies   Many insurance companies offer a discount to customers who buy multiple policies from them. For example, if you get life, home, and auto insurance from the same carrier, you may be able to get a better rate for all three.   Modify Your Driving Habits   Your driving record has a lot to do with how much your insurance costs, but it isn’t the only factor that influences it. For example, driving less frequently can also reduce your insurance rate. Many companies offer discounts for people who carpool, or who drive less than the average number of miles each year. If you think you may qualify, discuss it with your insurance agent.   Keep Your Credit Good   Good credit may also reduce your insurance rate. In the eyes of many auto insurance companies, good credit equals a responsible individual who is less likely to get into accidents. If you recently seen an uptick in your credit or think you may qualify for this discount, talk to your insurance agent.   Increase Your Deductible   Increasing your deductible means that you will have to pay more out of pocket in the event of an accident. However, it can also save you as much as 40 percent off your monthly bill. Weight the risks and benefits carefully before taking this step.   You may also decide that you want to compare your current coverage with what is offered by other companies, or switch to a new carrier entirely. To find out more, click here for a list of insurance agents in your area.