How to Cut Car Insurance Costs

By Larry Parr

  • Overview

    Most people don't realize that there are dozens of ways the average driver can lower the cost of her auto insurance. The ways range from where you park your car at night to where you sign up for coverage. If you take advantage of these methods, you can reduce the cost of your monthly auto premium by 20 percent or more.
    • Step 1

      Buy your car insurance online. Online insurance brokers have no overhead, and they pass that savings to you. Find websites that allow you to compare several insurance companies' prices side-by-side. Make your comparisons on at least three different websites that make comparisons so you are seeing prices from as many different insurance companies as possible. Choose the best price for the coverage you want. This step could save you as much as 20 percent over what you pay now.
    • Step 2

      If you are married, list the wife as the primary driver of all vehicles and the husband as the secondary driver. Women pay less for auto insurance than men do.

    • Step 3

      Join or start a carpool where you work. Joining a carpool with just one other driver cuts your rush-hour driving each month in half. Carpooling with two other workers cuts your rush hour driving by 66 percent. The fewer rush-hour miles you drive each month, the lower your insurance premium will be.
    • Step 4

      Park your car in a garage at night rather than on the street or on your driveway. Cars parked in a safe garage at night cost less to insure.
    • Step 5

      Install anti-theft devices on your car. A steering wheel lock and/or a device that disables your fuel pump unless you press a button or punch in a secret code can save you money each month.
    • Step 6

      Increase your deductible. Your deductible is the amount you pay out of your own pocket before the insurance company pays anything when you have a claim. Because the insurance company will pay less for each claim, it will give you a break on your premium each month. Use caution when setting your deductible, because you must be able to pay the deductible from your own resources if you should ever have a claim.
    • Skill: Moderately Easy
    • Warning:
    • Never lie on an insurance form. The penalties can be severe.

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