Car Insurance Tips That Will Save You Big Bucks

The average cost for car insurance in the United States these days is more than $1,000 a year. But you can save on your car insurance by following these car insurance tips ...

Get All the Discounts You Can

Discounts are the best way to save on car insurance because you lower your premium without sacrificing coverage. Common car insurance discounts include:

• Discounts for purchasing your home and auto insurance through the same company.
• Discounts for being a good student discount.
• Discounts for safety features such as automatic seat belts, airbags, and anti-lock brakes.
• Discounts for having taken a defensive driving course.
• Discounts for being accident free for a certain number of years, usually three years.
• Discounts for anti-theft devices such as auto alarms and electronic disabling devices.
• Discounts for being in law enforcement or in the military.

Ask your insurer if there are any other discounts you might be eligible for and be sure to include them in your policy.

Keep Your Coverages Low and Your Deductibles High

Your state has certain minimum liability coverages you need to have in order to drive your car. Your premium will be lowest if you buy just the minimum coverages, but keep in mind that you may not have enough protection in case of an accident.

In addition to liability coverages, you can choose whether to purchase collision and comprehensive coverage. Collision coverage pays for physical damage to your car caused by an accident. Comprehensive coverage pays for physical damage to your car caused by ... well, just about everything else, such as fire, hail, vandalism, storms, etc.

If you buy collision and comprehensive coverage, set your deductibles as high as you can afford. The higher your deductibles, the lower your premium. Raising your deductible from $250 to $1,000 can save you up to 50% on your yearly insurance cost.

Shop Around

Insurance premiums vary widely from one insurance company to another. You need to get quotes from several companies in order to get the best rate. Fortunately, the Internet makes this job easy. You just go to an insurance comparison website and type in your insurance information. You'll then receive quotes from multiple A-rated insurance companies.