If you own and operate a vehicle, auto insurance is a necessity. However, not all drivers will pay the same fees for auto insurance coverage, and it can be quite expensive for some. To save money, drivers sometimes choose policies that provide the minimum amount of required coverage. Unfortunately, drivers who try to save money by cutting back on their coverage may ultimately lose money when they are involved in an accident or become the victim of a theft. Below are some tips to help you save money without taking too big of a risk.
Know What You Need
In some cases, choosing a smaller insurance policy isn't necessarily a bad idea. For example, if you have an inexpensive car that wouldn't cost much to replace, investing in comprehensive insurance may be a waste of money. However, if your car is new or particularly costly to repair, comprehensive coverage is worth the extra expense. Regardless of the coverage level you choose for you own vehicle, make sure that you purchase sufficient liability coverage to protect against claims from other drivers or injured parties.
Look for Discounts
Instead of minimizing your coverage to reduce insurance costs, consider shopping for discounts instead. For example, many insurers now offer discounts to customers who drive for a certain amount of time without any accidents. You may also be able to save money on your auto insurance policy by enrolling in a defensive driving course, which is designed to teach students about safe driving habits.
If you have younger drivers listed on your auto insurance policy, you may be able to lower your monthly premiums through a "good student" discount, which is typically available for students in college and high school who earn at least a minimum GPA. Furthermore, most insurance companies provide discounts to subscribers who enroll two or more vehicles on the same policy, as well as to those subscribers who use the same insurance company for other policies, such as homeowner's insurance, renter's insurance, or life insurance.
Go Comparison Shopping
In addition to shopping for discounts and choosing the right amount of insurance, you can save money on your auto insurance coverage by looking for an insurer that charges lower rates to begin with. Not all insurers offer the same policies at the same rate, and comparison shopping can save you a great deal of money over time. To compare rates most accurately, be sure to factor in any discounts the insurer offers before making your decision.
Nothing will raise your insurance rates faster than a few accidents or violations on your record. In fact, repeated violations may even result in a suspension of your driver's license. To avoid these problems, drive defensively and always follow the rules of the road.