1.  Speak with a local auto insurance agent.

If you're purchasing vehicle insurance for the first time, having an experienced professional lead you through the process may be beneficial.  Captive agents, or licensed insurance agents that work only for one company, are paid to persuade you to sign up with that company.  An independent insurance agent, on the other hand, works with a variety of companies and can help you compare vehicle insurance quotes, including costs and policy details, to discover the best plan for your needs.

2.  Ask about discounts.

Insurance companies provide a range of auto insurance discounts, but if you don't ask, you can miss out.  For example, if you stay accident-free for a particular number of years or if your car has certain safety features, you may be able to save money on car insurance.  You also may be eligible for a discount on auto insurance if you are a good student or work in a certain field.

3.  Try to keep a clean driving record.

Obviously, this isn't something that you can fix after the fact, however accidents or tickets over the past three to five years can have a significant impact on auto insurance rates.  If you have had a good driving record over the last few years, ask the insurance agent if this would qualify you for a safe driver's discount.

4.  Ask about insurance policy bundling.

Many insurance companies offer discounts if you purchase more than one insurance policy with them.  So, if you need homeowners insurance, renters insurance, or life insurance, it may make good financial sense to bundle those policies with the same insurance company.

5.  When selecting insurance coverage limits, consider the potential risks.

When you buy liability insurance, you'll need to set the maximum amount that your insurer will pay for bodily injury and damage to the other party's car.  Additional coverage can mean you'll pay more for insurance, while lower limits will likely help reduce your premium.  While it may be tempting to choose the minimum amount of coverage required in your state to keep insurance costs as low as possible, consider the possibility of paying an outrageous amount out of pocket for someone else's medical or repair bills after an accident because the costs exceed your policy's coverage limits.  Even if you have a great driving record, you can't predict the future, so selecting higher coverage limits could help save you from a potential financial headache.

6.  Understand deductibles.

If you choose a higher deductible, which is the amount you pay out of cash when you submit a claim, you can usually lower your auto insurance cost.  A higher deductible means you will cover more of the costs in the event of an accident.  Your insurance company will offer you a reduced premium in exchange.  However, by choosing a higher deductible, you're taking a chance on ending up in a scenario where you'll have to pay a lot of money out of pocket.
If you choose a lower deductible, you will pay a higher premium.  However, you will pay less out-of-pocket if you get into an accident.  Because anything could happen, it's best to choose a deductible that's somewhere in between.

7.  Check your policy to make sure you aren't paying for coverage options you don't need.

Auto insurance companies frequently offer optional coverages that you may not actually need, or optional perks that are already covered via another source.  Avoid these and save money.



Our licensed insurance professionals are happy to assist you in finding excellent auto insurance coverage, and more.  Give us a call today.   (856) 267-5356