Tips to Reduce Auto Insurance Premium

Posted by on February-20-2009 under Save Money on Car

As I mentioned in my previous article, Auto Insurance is a recurring monthly expense. Any reduction in the cost of Auto Insurance would keep giving some extra bucks month after month. In my previous article: “Tips to Choose Right Coverage Limits for Auto Insurance“, I had explained how to choose the right coverages. That is the first step to ensure that you do not have any coverage that you do not need.

Once you have decided the right coverages, there are some simple tips that you can follow to further reduce the Auto Insurance premium. The tips are explained here:

1. Shop Around: First and foremost, shop around for Auto Insurance. The rates of Auto Insurance can vary widely between different insurance providers. So, try to find the one that offers the best rate. You can try to get Free Auto Insurance quote online. It gives you rates from multiple insurance providers in one go, so you can do easy rate comparison. Click Here to Compare & Save on Auto Insurance!

2. Defensive Driving Course Discount: Many states offer a defensive driver class discount. This is basically an online exam, which is very easy. Once you clear the exam, you can avail discount for 3 years! Check with your insurance provider regarding how much discount you will get with that. They will also be able to tell you about some websites offering Defensive Driving tests, that are affiliated with them.

3. Safety Features Discount: Some states offer discounts for anti-lock breaks, automatic seatbelts as well as airbags. Check with your insurance provider if they offer a discount on that.

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4. Improve Your Credit: Your credit matters when it comes to your auto insurance premiums. Why? Because if your credit is good, you are less likely to commit insurance fraud to try and get money. Improve your credit rating and you may be entitled to a discount on your auto insurance (You can check out my article: How to Improve Your Credit History)

5. Multi-Policy Discount: If you have multiple vehicles, then try to get all of them insured together from same Auto Insurance provider. Multi-policy discounts are normally huge.

6. Safe Driver Discount: In some cases, the insurance company may offer a safe driver’s discount if you happen to have a safe driving history for the last 3 years.

7. Valued Customer Discount: If you have been with an insurance company for long, they could offer you a renewal discount.

8. Good Student Discount: If a young person on a policy is still in school, their good grades (usually 3.0 or better) can qualify them for an auto insurance discount.

9. Type of Car Discount: The type of car that you buy may also be a factor for what affects the cost of auto insurance. The auto insurance quotes that you get for a luxurious car may be much higher than what you get for a simple automobile.

10. Multiple Product Discount: Most insurance companies are large entities and provide a wide range of other insurance coverage in addition to low cost auto insurance. If you use the same company to insure multiple areas in addition to your vehicles, you’ll usually qualify for a discount.

11. New Business / Transfer Discount: If you were insured with another auto insurance company and are switching to a new company on your own accord, you may qualify for this discount if your driving record has been clean for the last few years.

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12. Senior Citizen Discount: Auto insurance often gets lower with age because the elderly don’t drive as aggressively as those who are younger. If you are 65 years or older, you may qualify for a discount.

13. Public Transportation / Carpool: If you travel to and from work by public transportation or by carpool, you may be entitled to a discount on your auto insurance.

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14. Low Mileage: If the mileage you drive your vehicle yearly is lower than the average, then you will likely qualify for a discount.

15. Military Discount: Some low cost auto insurance companies offer discounts to members of the US military and military reserves.

16. Professional Organizations & Clubs: Being a member of certain professional organizations such as AAA can mean a discount on your auto insurance.

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Try these tips, and your insurance premium will definitely go down. This will help you Save Few Bucks, month after month.

You can read my previous article here: Tips to Choose Right Coverage Limits for Auto Insurance

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2 Responses so far.

  1. Thanks for sharing…
    I have enjoyed reading in here.
    I will try to visiting this blog very often

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  2. […] Once you have decided the right coverage limits, there are some tips to further reduce the auto insurance. Check out my article: Tips to Reduce Auto Insurance Premium […]

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