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7 Ways You Can Save Money On Auto Insurance


Auto insurance may be mandatory for drivers in the U.S., but it doesn't mean it has to expensive. Especially if you know where to find the discounts.

1. Multiple Vehicles/Bundle Coverage: If you have 2 or more vehicles, or need another line of insurance (like home, renters, life, health, etc) you may qualify for a lower premium rate. Chances are, the insurer would like to have all of your business - and with that often comes lower rates for added coverage.

2. Raising Deductibles: $250, $500, $1,000. These are typical insurance deductibles, and many people don't pay enough attention to them. If you can afford to pay $1,000 for a deductible (the amount you must pay out of pocket before the insurance company will cover losses) you can save hundreds of dollars.

3. Cheaper Vehicle: Obviously, this may not be something you can instantly change, but, if you happen to drive an anonymous, inexpensive, used vehicle you're going to find substantial savings over a brand new expensive vehicle.

4. Eliminate Unnecessary Coverage: Do you really need towing coverage? How about comprehensive and collision with a $500 deductible on a $5,000 vehicle? Ultimately, it depends on your specific needs but many people are paying hundreds more than they need to each year simply because they have coverage that isn't right for them. It's important to note that when eliminating insurance coverage, make sure you're within the minimum auto insurance requirements of your state.

5. Ant-theft Device: Believe it or not, this is a big deal to an insurance company. The less likely your vehicle is to be stolen, or if it's stolen, recovered. The better. Passive alarms are available from the factory on most new vehicles, however a Lo-Jack will really make a difference.

6. Student/Good Driver Discounts: 3.0 GPA? No tickets or accidents? Both? That's even better. Insurance companies use a complicated risk profile along with personal information to determine your auto insurance rate. While each insurance company rates risk differently, there is a common theme. Responsible drivers are less of a risk, and therefore, less likely to file an insurance claim.

7. Comparing Rates: By far the #1 way to save money on car insurance. If you're like most people and you flip open the Yellow Pages every time your insurance company raises your premium, you're really missing out on getting the best possible rates. Why? Because, also like most people you're probably not comparing rates, instead just jumping on the first "lower" rate you get. Sure, that's effective for lowering your premium, but it doesn't mean you couldn't also save a lot more. Comparing automobile insurance rates online, using a service like Quoteserv.com will show you the rate quotes from up to 4 insurance companies. This model allows you to review coverage, and premiums on your computer - not over the phone with one company or in the office of a high pressure agent.