According to the Insurance Information Institute, the national average auto insurance premium is about $850 per year. If that’s the average, many people are paying more–perhaps much more. Here are some simple ways to cut your costs.
* Go online. The Internet has many sites that will help you find lower prices. Just type “compare auto insurance costs” into an online search engine. If you’ve routinely been renewing your coverage each year, with the same company and the same agent, you might not be getting the best deals.
* Buy package deals. If you buy your auto insurance from the same company that you also use for homeowner’s and excess liability policies, you might knock 15% off the total price you’re now paying to multiple insurers.
* Enroll in a defensive driving class. Such courses may be taken in a classroom or online. By completing such a course, you might cut your auto insurance premiums by 10%.
* Ask for discounts. You can get discounts for all kinds of good behavior and safety equipment. Examples include good driving records, low annual mileage, online purchases, paying in full, insuring multiple cars, repeat purchases, anti-theft devices, anti-lock brakes, air bags, and automatic seatbelts. You may need to ask for these discounts.
* Raise your deductible. A higher deductible on your collision and comprehensive coverage can trim as much as 30% from your auto insurance premiums. You’ll have to pay for minor damages but you’ll still have coverage for major expenses.