Buying Car Insurance - Proven Tips

Consolidate Insurance Policies

Insuring two or more vehicles with the same insurance company can save you between 10 - 15% on your premiums. Covering your home through the same company that you have car insurance with can reduce your premiums by another 10-15%.

Increase Your Deductible

One rule of thumb is to carry the highest deductible you can afford.

By increasing your deductible from $100 to $1,000, you could save up to 25%.

Keep in mind, though, that your lender might not agree to a higher deductible.

Install Anti-Theft and Safety Devices

Installing a vehicle recovery system such as Lo-Jack or Teletracer could save you up to 7-10% per year. There are other relatively inexpensive anti-theft devices such as "The Club", which locks the steering wheel in place, as well as having your Vehicle Identification Number (VIN) etched on each window.

Safety features such as air bags, traction control and anti-lock braking systems (ABS) are viewed positively by insurance companies which, in turn, is reflected in your premiums. Although these systems may not reduce injury during an accident, they will reduce your premiums.

Clean Driving Record and Safety Courses

While traffic tickets and car accidents will increase your premiums, most insurance companies offer discounts to drivers with clean records.

Also, some insurance companies will offer a discount if you attend a Driver Training School Program, and your employer might even pay the cost if you use a company vehicle for your job. Training school discounts may vary between 7-10%.

Reduce Coverage on Older Vehicles

If you have an older car worth between $1,000 - $2,000, you might be better off dropping the collision coverage. Check to see if your collision premium is more than the value of the car.

Non-Smoker or Early Retiree Discounts

Yes, some companies provide discounts for Non-smokers and Early Retirees. Insurers consider smoking a dangerous driving activity.

Park in a Garage

Sometimes the difference between getting insurance and going uninsured is where you keep your vehicle at night. Most thefts do not involve a garaged car and this is reflected in premium discounts.

If you have a winter home with no garage, try putting the vehicle in storage.

Let your insurance company know that your car is in storage, and you could receive a partial premium reduction.

Carpool with a Co-Worker

Most insurers surcharge premiums if the commute to work exceeds 3 miles. Carpooling with a co-worker may result in a discount for low-mileage use.

Drive a Conservative Car

Before buying a car you might want to find out how much your insurance will cost annually. Insurance companies consider certain cars easily damaged and expensive to repair, and other cars the target of thieves. You could end up paying a premium surcharge between 10 - 20%. The National Highway Traffic Safety Administration (NHTSA) has established the Car Safety Hotline at 1-800-424-9393 to report safety defects or to obtain information on cars, trucks, child seats, highway or traffic safety. The Insurance Institute for Highway Safety provides information on death rates by car make and model as well as the standard safety equipment available. The Institute can be reached at 703-247-1500.

Teenage and College Bound Drivers

You may want to consider letting your teenager drive the family car instead of buying his/her own vehicle. This will very likely lower your cost to cover them.

Students in school and living away from home can reduce their premiums by 30 - 50%, depending on the insurer.

Conclusion

After reviewing all of the savings tips, you may have determined that if you added up all your credits you could receive a 70 - 90% reduction in your premium. Well, unfortunately it doesn't work like that. Certain measures that you take may qualify you for being placed with the "preferred" company of a particular insurance group.

This "preferred" company will be able to give you additional premium credits.

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