5 Great Ways to Cut Insurance Costs

January 14, 2016

When shopping for car insurance, it can be shocking to discover how much premiums can cost. You need to do some digging and take a look at your driving habits before deciding on your insurance coverage. If you can’t handle to costs of the premiums you’re being quoted, learn these great ways to cut your insurance costs.


Here are 5 Great Ways to Cut Insurance Costs

Shop Around

A lot of people will pick a popular auto insurance company and purchase the premium that they are quoted. Most don’t realize how different the price can be between different auto insurance companies. They offer different discounts and have different criteria for discounts. Some put a lot of stock in the driver’s credit, while other companies don’t. Make sure you check out all of your options before you make a decision.


Take Defensive Driving Classes


If you can’t receive a safe driver’s discount because you have too many points on your license or were recently involved in an accident, find a defensive driving course that will reduce the points. Many auto insurance companies will give drivers a large discount on their premium for taking the course. You can even find defensive driving classes online so you don’t have to worry about your busy schedule getting in the way.




When you get your quote on your auto insurance, you will tell the auto insurance company how many miles you drive each year. The more you drive, the more expensive your auto insurance is going to be. There are a few different ways that you can cut back on your miles. If you live near someone you work with, talk to your coworkers about starting a carpool. The more people you get to join in, the less you’ll need to drive your own vehicle. If carpooling isn’t an option, utilize Park and Rides. You can park at a mass transit station and take mass transit to work and back to your vehicle.


Raise your Deductibles


Raising your deductibles can be a tricky situation. If your deductibles are too low then your premiums are going to be through the roof. It’s great if you ever need to file an insurance claim because you won’t have to pay much out of pocket, but it’s not worth it if you’re paying more in premiums every month. If you raise your deductibles too much, you’re going to have low premiums, but you’ll be stuck paying astronomical deductibles when an accident happens. Make sure your deductibles are as high as you can afford to pay out of pocket if you need to and no higher.


Drop Unnecessary Coverage


If you’re driving an old vehicle, comprehensive or collision insurance might not be in your best interest. If the insurance costs more than it would cost to replace your car, stick with the basic coverage.


These tips will help you save money on your auto insurance premiums. Pay attention to the types of coverage you are choosing and which types of discounts you can receive. Talk to an auto insurance agent to explore all of your savings options. Click here to find an agent in your area.