Cutting Car Insurance Premiums

As budget-minded consumers scramble for ways to save, one of their prime targets might be their auto insurance policy. Although auto insurance premiums dipped by an average 1% last year, there are ways to save even more, according to insurance experts. One of the primary ways to cut your car insurance tab, they say, is to shop around. Every year, before your policy comes up for renewal, you should compare rates, either through your agent, your state insurance department, or by going online to sites like Esurance.com.

There are other well-known ways to save on car insurance, including higher deductibles on liability and collision coverages. Dropping collision and comprehensive coverage on an older car is another way to cut your premium. Many insurers will give you a break if you also buy other policies, like homeowners insurance, at the same time you get your auto policy, while others may offer a low-mileage discount on a second car if it’s not driven often.

Don’t forget to ask about other, lesser-known discounts that may be available. A teen who maintains a B average in school or who has taken a driver education course may qualify for a lower premium. If your college student lives on an out-of-area campus, you may be eligible for a discount. Air bags, anti-lock breaks and anti-theft devices may also mean lower costs. And some even offer discounts to members of professional associations or alumni groups.