Ways to Save Money on Car Insurance

Car insurance premiums can be spendy, but there are ways that you can reduce the cost. Below are a list of tips on how to cut down the costs of your insurance premiums.

Have Your Children Take a Driver's Education Class - Car Insurance Savings Tip #1

Besides your driving record, children are likely the most expensive factor concerning your car insurance premium, simply because they carry the most risk. Most car insurance companies will give significant discounts to students who take a driver's education class, which is usually a 4-6 week course on safe driving that can be taken after a driver gets their driving permit.

Get Good Grades - Car Insurance Savings Tip #2

Another way to reduce the cost of car insurance for your children is to encourage them to get good grades. Most car insurance companies will give discounts to drivers if they maintain a certain GPA.

Don't Get Tickets - Car Insurance Savings Tip #3

Getting moving violation tickets, which include speeding an reckless driving, can have a significant impact on your car insurance costs. Typically, after 3 violations, premiums will rise a pretty sizable amount. If you've had problems with moving violations in the past, the records will stay with you for at least 3 years, meaning that it will be a while before your car insurance premiums go down. It's best to avoid the problem altogether and just drive safely from the start.

Drive a Safer Car - Car Insurance Savings Tip #4

Car insurance companies base their premium rates on both the driver and the car being driven. They have statistical information on which cars are in the most accidents, which have the most damage in an accident and which cause the most damage in accidents. Factors in this rating include safety items like air bags and anti-lock breaks. If you're considering purchasing a new or used vehicle, compare the cost to insure the vehicle before you buy it.

Consolidate All Cars and Individuals Under One Plan - Car Insurance Savings Tip #5

Car insurance companies give discounts when covering multiple vehicles. If you end up in a situation where you have two cars under two different insurance plans, such as when you get married, call around and find out if you can get a better rate for having them both under a single plan. Chances are the money you save in car insurance premiums will be well worth the time.

Consolidate Multiple Insurance Types Under One Plan - Car Insurance Savings Tip #6

Sometimes insurance companies will give you discounts by carrying multiple types of insurance plans with their company. For instance, if you have both car insurance and home insurance with the same insurance company, they might give you a certain percentage discount on each.

See if You Qualify For Low-Mileage Discounts - Car Insurance Savings Tip #7

If you have a short commute to work, or work at home, or maybe just have a vehicle that doesn't get a whole lot of driving action, you might qualify for a low-mileage discount. Since vehicles that don't rack up as many miles have less of a chance of being in an accident, car insurance companies can offer more affordable rates.

Consider Higher Deductibles - Car Insurance Savings Tip #8

A deductible is the amount you are required to pay, usually per year, out of your own pocket before a car insurance company will start to pay. So if you have an accident where your rear bumper is smashed in and the repairs will cost $800, and you have a $500 deductible, you will be paying $300 out of pocket for the repairs.