8 Ways to Save Money on Auto Insurance

Your car insurance can cover repair costs, property damage liability or medical treatment after an accident. It's required to operate your vehicle legally, so consider eight ways you can save money on this valuable coverage.

Drive Safely

If you’re at-fault in an accident, your insurance rates may increase when your policy renews. Practice safe driving techniques and avoid moving violation tickets or at-fault accidents to keep your insurance costs low.

Maintain Good Credit

Auto insurance companies use credit report data to determine how likely you are to file a claim. Maintain good credit to save money.

Change Your Deductible

The deductible is money you owe if you file an insurance claim. By increasing your deductible, you could save money on your insurance premium, but be sure you can afford the increase.

Drop Collision and Comprehensive Coverage

If you purchase collision and comprehensive insurance, you could receive enough money to replace your vehicle if it’s damaged, lost or stolen. The insurance company will only pay fair market value, though. Consider dropping this coverage if you own an older car or one that’s worth less than $1,000.

Qualify for Usage-Based Insurance

Your insurance company may offer usage-based insurance (UBI) discounts if you employ certain safe driving techniques. A telematics device plugs into your car under the steering wheel and collects data such as when and how much you drive and how hard you use the brakes. With this data, the insurance company can determine if you qualify for discounts when it’s time to renew your policy.   

Ask for Discounts

You may be eligible for several auto insurance discounts. Ask your agent about discounts for:

  • Low-mileage if you don’t drive very often or long distances.

  • Car safety if your car is equipped with antilock brakes, air bags, a car alarm or other safety features.

  • Good student performance and grades in school.

  • Personal use if you do not drive your car for business purposes.

  • Membership discounts if you belong to certain professional or other organizations.

Comparison Shop

By shopping around with several different insurance companies, you could find the coverage you need at a cheaper rate. Be sure you look at the company’s professional and customer satisfaction ratings as you choose a reputable insurance company.

Get an Insurance Quote Before you Buy a Car

Certain vehicles are cheaper to insure. As you shop for cars, contact your insurance agent and ask for quotes on the cars you’re considering. Then you can factor in auto insurance costs as you buy a car.

Save money on valuable auto insurance in these eight ways. For additional money-saving tips, talk to your insurance agent.
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