How to Save on Your Auto Insurance

Have you recently been in the market for auto insurance? If so, you may have noticed that rates can vary quite a bit from company to company. So how do you know if you're getting the best deal on your auto insurance? Here are a few tips to help you save on your policy:

Keep a Clean Driving Record

Getting behind the wheel of a car is a privilege, but with it comes responsibilities and potential consequences. Your driving record has an impact on your car insurance rate, as how safely you drive can be reflected in the amount of premium you pay. A good driving record means lower premiums and fewer claims filed, so safe driving pays in more ways than one. The more tickets or moving violations that are noted on your driver’s license, the higher your rates will be, as insurers consider this to be indicative of increased risk. Practicing defensive driving to avoid tickets, as well as minimizing distractions while operating a vehicle, can help you keep your premiums low and keep yourself and other drivers safe on the road.

Don't Settle - Shop Your Auto Insurance

Comparing different insurers and their prices, as well as their available coverage options can lead to some great savings while giving you the same level of protection. Auto insurance isn't just about a low price; it's also important to consider factors such as customer service, discount programs, and other features that may further benefit you when shopping. Doing your research may be the difference between overpaying for coverage you don't need and getting discounted rates for exactly what you want without breaking the bank.

Know What Discounts You’re Eligible For

Applying discounts on your auto insurance is a great way to help reduce costs. While each carrier is going to be different in what discounts they offer, there are a handful of common discounts you can ask your agent about:

• Multi-Policy: You may be eligible for a multi-policy or bundling discount if you purchase two or more insurance policies from the same insurer, such as auto, home, and renters. Ask your agent to quote out what the premium would end up being on both policies to see how much you could be saving.
• Low Mileage: Whenever you are getting a quote, you will generally be asked how many miles you drive annually. The reason behind that, is insurance companies want to rate risks accurately. Less time on the road driving equates to fewer opportunities to get into an accident.
• Good Student Discount: If your young driver can maintain a B average, you can qualify for this discount. This is typically offered for drivers from age 16-24 and the driver must be a full-time student to qualify. Keep in mind that the carrier will require you to submit proof like a report card or a transcript indicating the student’s grades.
• Electronic Funds Transfer (EFT) Discount: Auto insurance companies incentivize their customers for taking advantage of automatic payments, encouraging them to ensure continuous coverage. Automatic payment options are available through electronic funds transfer from your checking account or recurring payments using debit/credit cards
• Paperless Discount: Electronic billing is becoming the norm. By opting into paperless services, you can have your bills and policy information delivered right to your inbox or through a carrier's mobile app for easy access.

These are only a few of the many ways you can reduce your car insurance costs. By bundling, shopping around for rates, and applying discounts you are eligible for, you will be able to lower your payments and put that extra money back into your pocket each month. Take some time today to look over your coverage and make sure you are getting the best deal possible.