Five Ways to Save on Auto Insurance

Auto insurance can be a significant expense but it is a necessity. Skipping auto insurance coverage to save money may end up costing you lots of money down the road. Instead of leaving yourself and others unprotected, find creative ways to cut insurance costs.

1. Insure your car and home with the same insurer. A multi-line discount may save you 15 percent on auto insurance costs.
2. Don't buy a luxury car or sports car. These types of cars are more expensive to repair so they will garner you a higher insurance premium.
3. Lower coverage on older cars. There's no since in having $25,000 worth of collision property damage coverage if your car is only worth $5000. If you drive an older car, it may make sense to lower the collision limits on your policy. However, always purchase the most liability coverage you can comfortably afford.
4. Take a safe driving course. Insurers may approve certain courses for discounts. The safer driver you are, the less likely an insurer will have to pay out a claim in the future. This could get you a discount of up to10 percent.
5. Shopping around for auto insurance is the best way to get the lowest rates. You can save hundreds of dollars simply by looking at more than one auto insurance provider. Fill out InsuranceBureau's online form to get multiple quotes from independent auto insurers.

Sources

1. Six Ways to Save on Auto Insurance, Stephanie AuWerter. (2007). Retrieved April 18, 2008, from http://www.smartmoney.com/consumer/index.cfm?story=autoinsurance