How to Save Money when Shopping for Car Insurance

Depending on the number of cars you or your family owns, auto insurance can be quite expensive—that is, if you don’t shop around every few years.

Here are some tips from insurance experts to make sure you get maximum coverage at the lowest possible price.

Multiple Insurance Companies

Maybe your homeowners’ insurance provider is different from your auto insurance provider. Or different cars and drivers have different policies. Gather all your insurance policies and see if you can save money by combining them under one policy.

Diagnostic Devices

There is a free plug-in available that analyzes your behind-the-wheel driving habits. It could save you $150 per year – but it’s both good and bad. It tracks your speed, whether or not you come to a complete stop, the time of day that you drive.

However, it could COST you more if the tracking device records that you drive over the speed limit or drive mostly at night (a high percentage of accidents occur then) or constantly slam on your brakes.

School-Aged Children

If your high school or college student has a 3.0 grade average or better, most auto insurance companies will lower your rates by 15 to 20 percent.

Your Deductible

Just increasing your deductible from $500 to $1,000 can save you up to 20%. Having a higher deductible that you pay out of your pocket (in case of an accident) usually costs less than paying a higher premium.

Low-Mileage Discounts

Most insurance companies will lower your premium if your car is driven 10,000 miles or less per year. Savings tip: If you drive 12,000 per year to and from work, consider carpooling a couple of days a week to get down to the 10,000-mile limit.

What other things have you done to save money on car insurance?