How to Save Money on Your Car Insurance Premium

1.

Multiple Car/Policy Discounts: If you insure more than one vehicle with the same insurance company, or even carry another policy like home owners or renters insurance, you should be saving at least 10%-25% on your total premium. See if your carrier has already given you this discount, and if not, find out why.

2.

Driver Training Discounts: Have you taken or would you be willing to take a driver training course? If so, you may be able to save a good chunk of change on your car insurance premium. Consider that New York offers a nearly $40 yearly discount for taking a driving course every three years. If you're an elderly driver, this could save you 5% to 15%. Contact your auto club or state motor vehicle department for information on accepted training programs.

3.

Student Discounts: If your child is listed as a driver and is a student, you might be entitled to a student discount, especially if your child receives good grades or is enrolled in a school driver's education program. Keep in mind that you will probably save money by listing an adult as the primary driver, and your child as a secondary or occasional driver. Also, if your child is a college student living over 100 miles from home and the car stays at your home, you could save up to 15%.

4.

Special Equipment Discounts: Does your car have a theft deterrent system, air bags, anti-lock brakes, or other safety equipment? If so, make sure your insurance agent knows about them and is giving you the proper discount.

5.

Lower Use Discounts: Do you drive your vehicle less than 7,500 miles per year? If so, make sure your policy reflects that. Think about car-pooling or using public transit for your commute. Not only could it save you some money on your car insurance premium, but you'll be helping the environment too.

6.

Increase Your Deductable: Is it feasible to increase your deductable for a lower premium? Raising your deductable from $500 to $1000, for example could save you 5%-15%. However, make sure you've got the money in the bank to cover the extra gap should you need it.

7.

Eliminate the Collision Part of Your Coverage: Collision coverage will fix your car if it's in an accident. If you're driving an old beater, does it make sense to pay for insurance to replace it? If your classic auto has sentimental value, it may be worth it for this additional coverage, but try to weigh the extra cost against the actual potential benefit.

Tips and Warnings

  • If your insurance company just isn't cutting it, shop around. The internet makes it easier to compare and get quotes from several different companies, but don't be afraid to pick up the phone and make some calls. It helps to have your current policy information in front of you. You'll want to make sure you're comparing apples to apples, because a standard policy with one company may be slightly different than a standard policy from another.
  • Give yourself plenty of time to find a new company before your old policy expires. Don't cancel your old policy or let it lapse without having a new one in place.