How to Reduce Automobile Insurance Costs
- 1). Investigate, evaluate and maintain a good credit rating. Many insurance companies include your credit rating as factor in determining policy costs. Pay bills on time and request a copy of your credit report at least once per year. Contact the reporting agency immediately if you discover errors in the report.
- 2). Research the safety rating and average repair costs of a vehicle you are considering purchasing. The Insurance Institute for Highway Safety maintains safety ratings and crash test information for numerous vehicle types, and you can get information from a current or potential insurance company as well. Also, consider the make, model, year, and options on the automobile, as these factors will affect insurance rates.
- 3). Shop for insurance. Get a minimum of three quotes before making a decision to purchase automobile insurance. Use more than one source for obtaining quotes, such as online, through an agency, and by using an independent agent.
- 4). Ask questions. Never accept a policy quote without first asking questions such as price differences based on deductible amounts, available discounts such as group insurance discounts or a discount you may qualify for by providing documentation of a safe driving record, defensive driving course, or good student discount.
- 5). Combine home or renters insurance with automobile insurance. Many companies provide discounts for multiple policies.
- 6). Review your coverage on a periodic basis. Reduce or eliminate comprehensive and collision coverage on older vehicles and speak with your insurance agent to keep coverage adequate, while still making sure you are not "over insured."