12 Great Ways to Save Money On Your Car Insurance (1-4)

1. One Company, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you may be paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company. These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.

Tip. Talk to your agent about multi-policy discounts.

2. Good Driver, Good Price? – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however. Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies. These “middle” people pay less than the worst drivers, but more than the best. Many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?
The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, probably, no one told them there was even a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.

Tip. Make sure you’re getting the best discount for your driving record. Talk to discounts, which some insurers offer. your agent. And remember, be a safe driver. It will save you money.

3. Discounts for Taking the Bus (or Other Mass Transit) – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.

Tip. Some drivers should consider mass transit. Remind your agent that you are NOT driving to work so you receive the appropriate discount.

4. Low Annual Mileage, Lower Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.

Tip. If you drive less than the average, you could be eligible for low-mileage