5 ways to save on auto insurance

If you drive a car, it’s a good idea to have some auto insurance to help protect you in the event your vehicle is damaged in an accident. In fact, in most areas, it’s the law. Driving without proof of auto insurance is illegal in most parts of the country and you’ll get a ticket if you’re pulled over by the police without proof that you’re covered.

Still, there’s no reason to overpay for auto insurance. By following a few simple steps, you might be able to save money on your auto insurance premiums.

Here are five easy ways to save a few bucks on your auto insurance policy.

1. Shop Around.

While it may seem like the coverage is the same no matter which insurance company is providing the auto insurance policy, that’s not necessarily true. The cost and level of coverage can vary from company to company, so it can definitely pay off to get free quotes from a few insurance companies to make sure you’re getting the best deal. Then, you can make an informed decision about which company to go with.

2. Bundle Your Insurance Coverage.

You might save a few bucks by buying your auto insurance policy from the same company you have for your life, homeowners, renters or other type of insurance. By “bundling” all your insurance coverage together with the same company, you might save money.

3. Slow Down.

Auto insurance rates are based largely on how likely it is that the policyholder will be involved in an accident. So, insurance companies pay close attention to how many speeding tickets the driver gets. An easy way to keep your auto insurance premiums low is to avoid getting tickets for speeding, reckless driving, driving under the influence and other moving violations. Tickets can result in points being added to your driving record and points mean you’ll pay more for auto insurance.

4. Raise Your Deductible.

Another simple way to save a few bucks on auto insurance is to raise your policy deductible. A deductible is the amount of money the policyholder must pay for repairs before the insurance company will pay the remainder up to the amount of coverage. By agreeing to pay a little more of a deductible, drivers can save a bit on monthly premiums.

5. Reduce Your Coverage.

Auto insurance generally includes comprehensive coverage for the repair or replacement of your car from damage that doesn't result from an accident as well as collision coverage for damages if you're in a wreck. If you drive an older vehicle, it might make sense to drop collision coverage, since your car might not be worth the amount of insurance you have on it. On the other hand, comprehensive coverage is generally so inexpensive that it’s smart to hang onto that coverage to protect against storm damage, vandalism and theft of your vehicle.

Taken from: Guest Post (article, By Samantha Rivers), Google (images).