How to Reduce Car Insurance Premiums

Although a lot of companies claim that they can help get customers lower auto insurance rates, most times, it's the buyer who needs to act in concrete ways to reduce car insurance premiums and profit from the savings. Different strategies and tactics can lower auto insurance rates significantly for a driver. Here are some of the main ways a car insurance buyer can save money on policies for nearly any vehicle.

Items like roadside assistance may be loading up a policy with cost. Identify any parts of the policy that you don't need and eliminate them. Also, think realistically about which vehicles may need comprehensive or collision coverage, and which may not. Older vehicles may not be worth covering for extended comprehensive or theft insurance. It helps to calculate what the value of covering repairs or loss would be for any specific vehicle with a Kelly Blue Book value check.

Compare auto insurance for getting the best rates possible. Since each policy is different, some drivers save more with large commercial auto insurers, while others report savings from small, independent shops. Find the best rate by looking around and comparing quotes.

Many auto insurance companies will discount the policy based on up front payment for 6-month or 12-month periods. If you have the cash on hand, you could be saving in the long run.

Drivers can also get lower auto insurance rates by raising the deductible, which is the amount a driver would have to pay in the event of a collision before the insurer would pick up the tab for the rest. This means a greater liability in the event of a crash, but dollars saved off premiums month to month.

Some safety features on a vehicle, like anti-lock brakes and airbags, can get drivers money off of their auto policies due to decreased risk. Knowing what these features are can help when a driver is looking for a car on the dealer's lot.

A good, solid used car with basic options and an older model year with low-mileage can be a money-saver when a driver signs up for insurance. Think about what kind of coverage a vehicle will require before buying, and you may save additional money with cheap auto insurance policies.

Another way to save and reduce auto insurance costs is to be a return customer. Homeowners can often lower auto insurance policies by using the same insurance company that issued their homeowner's insurance. Alternately, drivers can use AAA to find additional breaks on auto insurance.