Ways to Lower Auto Insurance Costs

Written by Michael Browne

Auto Insurance CostsYou've picked the perfect car, loaded with safety features and a reasonable engine - maybe it's even a hybrid, or a plug-in electric. You've combined your auto and home insurance, and you've also got a multi-car discount because your spouse's car is on the same policy. Even so, you still think you're paying too much for car insurance. Is there anything else you can do?

Actually, even though we've already shared a number of ways you can save money on car insurance, there are still many more. Here are five relatively easy ways to lower your auto insurance costs:

  1. Go electronic: Almost every insurance company gives some kind of a discount if you set up EFT (electronic funds transfer) payments, and some increase that discount if you accept statements by email.
  2. Make fewer payments: If you can afford to pay for the full six- or twelve-month term of your auto insurance at once, or at least make quarterly payments, you'll save a percent or two on your premium.
  3. Be loyal: While many discounts are aimed at getting new business, insurance companies know the value of a loyal customer. If you've had your coverage from the same company for more than two years, ask about a loyalty discount.
  4. Renew early: Whether you're sticking with the same company or switching to a different one because of a better product selection, renewing your coverage before your term is over can sometimes result in a lower premium.
  5. Go back to school: Defensive driving classes aren't just for erasing traffic tickets. If your driving record is clean and you successfully complete a defensive driving class, you'll earn a discount that can last up to three years. Even better? You can take another class when your discount runs out.

These are just a few of the ways you can save money on auto insurance premiums. If you still believe you're not getting the cheapest auto insurance available, be sure to ask your insurance representative for any other discounts that may apply to you.