I am sure that everyone wants to save money, especially on auto insurance. Since none of us should drive without insurance, there is a way to be properly insured and still save money. Here are ten ways how you can lower your insurance premium.
- Place your homeowner’s, auto, renter’s, and any other policy with the same company. The insurance company will give you a companion discount. Depending on the company, this discount is from 10 percent and as high as 25 percent.
- Being married also gives you a discount. Insurance companies assume that marriage makes people more responsible. Check with your agent, domestic partnerships also counted as a spouse.
- If you have more than one vehicle and driver in the household, insure it with the same auto policy. Insurance company will give you a multi-car and multi-driver discount.
- Pay your insurance premium in advance. Pay semi-annually or annually your policy in full and you will receive a discount. You lose money when you pay your premium monthly. Insurance companies charge you additional $2 to $5 per month just for processing fees. You can save on those fees by setting your account to be paid automatically from your bank account. In addition, always pay your bills on time. Insurance companies charge late fees.
- Keep continuous insurance. Insurance companies don’t like a lapse in coverage. Depending on the insurance company, lapse can be tolerated up to thirty days.
- Shop for your auto insurance early. Many companies give up to 10 percent discount on advance quoting. It makes a big difference on the premium asking for a quote eight to ten days before you want your policy to be effective.
- Keep driving record and previous insurance history clear when the quotes are made. Some insurance companies don’t run the reports during the quoting. Tell the agent the truth about your driving record and claims. Reports still will be run at the time when the policy is issued and it can affect the policy premium.
- Keep your credit score clean and high. Depending on the insurance company, your credit score can help your premium or harm you. A high credit score number helps you get considerably lower rates.
- Having theft preventative devices on your vehicle also gives you a discount on your auto insurance. If you have alarm, active disabling device, passive disabling device, or OnStar service on your car, tell the agent about it.
- Good student discounts give you an additional discount if your children are on the policy and they are good students. The agent will require you to submit a copy of the grades.