Tips to Save on Auto Insurance

Comparing Car Insurance Costs: What to Look For

Compare identical policy coverage and limits, so it’s an apples-to-apples comparison. Refer to your auto insurance declarations page to get the information your current policy includes, such as your policy term, vehicle information, covered drivers, coverage limits, and discounts. You can provide this information to your independent insurance agent or input it into an online rating website to ensure that the quotes you get reflect the correct information for you, your vehicle, and your coverage limits.

Maximizing Car Insurance Discounts and Savings

Insurance companies offer discounts for various things. Be sure to ask about all the discounts you may qualify for to ensure you're getting the lowest possible auto insurance rate. These are some of the discounts you may qualify for to save money on your car insurance policy:

• Billing Discounts: If you are willing to pay your auto policy in full when you purchase it, or allow the insurance company to directly debit your checking account or charge your credit card for your monthly premiums, there is usually a discount through your car insurance carrier.

• Bundling Discount: If you have home insurance or renters insurance policy with the same insurer that you purchased your auto insurance through, you will be eligible for a bundling discount, which can save you up to 20% on the cost of your insurance.

• Defensive Driving Discount: Consider taking a defensive driving course to reduce the cost of your insurance.

• Distant Student Credit: If you are a student and attend a school that is more than 100 miles away from your home and you do not have a car on campus, you can qualify for a distant student credit because you will not have access to a vehicle full-time.

• Good Student Credit: This discount is awarded to drivers under the age of 25 who are enrolled full-time in school and carry a grade point average of 3.0 (B) or higher.

• Homeownership Discount: If you own a home, some car insurance carriers will give you a discount even if you do not insure your house with the same insurer that covers your car.

• Low-Mileage Discounts: If you don't commute every day or don't drive your car often, you may qualify for a low-mileage discount from your insurance company.

• Tracking Device Credit: Most auto insurance companies offer a discount if you sign up to use their mobile app or install a small device in your car that reads your driving activity and reports back to the insurer.

• Veteran Discount: If you are serving or have served in the U.S. military, your car insurer may offer you a discount for your service to your country.

How to Lower Your Car Insurance Cost with Safe Driving Habits

One of the biggest factors in determining your auto insurance premiums is your driving record. Car insurance companies typically look at the last five years of your driving history when determining your rate. At-fault accidents, comprehensive losses, moving violations, and even not-at-fault accidents impact your insurance costs. Practice safe driving habits to avoid getting into accidents or being cited for moving violations that may increase your car insurance premiums. If you know you have an accident or a moving violation that will age out of the 5-year underwriting period soon, be sure to request revised car insurance quotes so you are not paying for an accident or violation that should no longer be factored into your driving record.

Increasing Your Deductibles to Lower Premiums

Deductibles apply to the comprehensive and collision coverages on your vehicle. A deductible is the portion of a claim you must pay out-of-pocket after an accident before your insurance company will pay the rest of the cost to repair your car. You can choose how much of a deductible you want to pay when selecting a car insurance carrier. A higher deductible can lower your annual premium. Ask your independent insurance agent how your premium might be affected if you increase your deductible. If you are using an online rating tool such as A-MAX Insurance, be sure to quote your coverage at various deductible levels to see what kind of savings you can gain from raising your deductibles. If you do raise your deductibles, make sure that you can afford to pay the higher amount if you are involved in an accident.

Improving Your Credit Rating to Lower Car Insurance Costs

Your credit rating can impact your car insurance rates. Be sure to pay your bills on time and keep your debts to a minimum to improve your credit score and save money on car insurance. If you know your credit score has improved, but you have not seen a change in your car insurance rates, ask your independent insurance agent or insurance company to re-score your policy so that your premium can be reduced by your improved credit score.

Consider Pay-Per-Mile Insurance or Usage-Based Insurance

If you work from home or don't put a lot of mileage on your car, you may want to consider usage-based insurance called pay-per-mile insurance. This type of car insurance policy is for people like you, so your monthly premium is adjusted based on how much you drive. Like a traditional policy, you can purchase all of the coverage you need for your car. If you drive your vehicle less than 10,000 miles per year, request a quote for this type of car insurance.

Tips to Save on Auto Insurance FAQs

Q: How can I find a cheap car insurance company?

A: You can request quotes from your independent insurance agent or use an online rating tool such as A-MAX Insurance to find the best car insurance company for you.

Q: How can I make sure I am getting the same coverage on my new car insurance quotes that I have on my current policy?

A. Refer to the insurance declarations page for your current insurance policy when seeking new quotes. The declarations page will provide you with all of the information you need to get a quote on a new car insurance policy with the same coverage that you have now.