How to Lower Your Car Insurance

By Stephanie Ewell

Overview

In today's economy, we are all looking for ways to cut back on our monthly expenses; insurance can be one of the easiest ways to save money. When it comes to car insurance, you need the right coverage at the lowest possible price. Regardless of whether you're shopping for new car insurance, ready to renew existing coverage or already have a policy, with a little planning you can cut your premiums and lower your car insurance costs substantially.

Step 1

Compare rates at several companies to ensure the lowest rates on your new car insurance policy. If you have homeowners or renters insurance, check with your company to see if they offer discounts for combining your home and auto insurance. If you have more than one car, ask if they have multiple vehicle discounts.
Step 2

Cut your existing car insurance premiums by raising your deductibles, lowering your coverage on older cars to liability only, removing auto rental insurance if you have more than one vehicle and attending defensive driving classes.

Step 3

Ask for a policy discount if you have recently gotten married, have an anti-theft system, safety features such as air bags or anti-lock brakes or have not had any accidents or tickets in the last five years. Students with good grades can receive a discount as well as drivers over 50.
Step 4

Reduce your car insurance costs further by paying your premium up front; have your payments automatically deducted and always make your payments on time. Lapses in coverage will disqualify you from receiving certain discounts.
Step 5

Receive additional discounts by carpooling or cutting back on the number of miles you drive. Ten-percent discounts are available for driving less than 5,000 miles a year and there are 5-percent discounts for driving less than 7,500 miles a year.

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