Consumers pay hundreds of dollars in auto insurance premiums each year. Insurance companies determine policy cost based on a variety of factors, such as vehicle make and model and the insured's driving history. Compare insurance policies to secure the lowest premiums. Making simple changes to coverage, such as lowering deductibles, can also trim expenses.
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Difficulty:
Moderate
Instructions
1
Find insurance companies. The American Insurance Association will assist in finding reputable insurance companies. Contact several different companies to request policy quotes.
2
Make a list of your coverage needs. States require automobile owners to purchase liability coverage, at a minimum. Collision and comprehensive coverage is also offered. Collision will cover your vehicle in the event of an accident. Comprehensive covers events such as automobile theft or damages resulting from a natural disaster. Personal injury protection (PIP) is also available, and provides extra coverage for your injuries in an accident. Choose coverage based on your needs and affordability.
3
Compare insurance prices by deductible. Insurance deductibles dictate how much you pay for an accident. For example, you will pay $500 if your insurance deductible is $500. The lower the deductible, the higher the policy costs. MSNBC recommends increasing deductibles to save money. For example, increasing a deductible from $200 to $500 will save 15 to 30 percent on policy costs. Boosting the deductible to $1,000 will cut policy costs by 40 percent.
4
Request a quote for low vehicle mileage. Qualify for a premium reduction by asking about low mileage discounts. If you don't qualify, consider making lifestyle changes to cut premium costs. For example, joining a carpool will reduce the numbers of miles you drive each year.
5
Request a multi-policy quote. Policy holders who have several policies, such as auto insurance, renters insurance and life insurance, may qualify for a premium discount. Compare multi-policy discounts between insurance companies when making a decision.
Tips & Warnings
If your car has a low market value, carry liability insurance only. Liability insurance is required by the state and covers damages and injuries caused to other vehicles and occupants. This will reduce the cost of insurance.
Don't risk a lapse in coverage when purchasing a new policy. Request that the new policy start the day before the old policy expires.
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