Tips to Save On Your Car Insurance

Almost every state requires its drivers to carry at least liability insurance coverage, and studies show that 65% of Americans are overpaying for their auto insurance.  Most people don't realize that there are a lot of different options out there and that saving money on auto insurance can be very simple.

It can be a challenge to find affordable auto insurance, especially if you don't have the best driving record, but there are a lot of different ways that you can save on your auto insurance.  Here are a few tips that could drastically lower your car insurance premium: 

1)  Take a defensive driving class.  Most auto insurance companies will lower your rate if you send in proof of completion.

2)  Ask about any special discounts that you may qualify for.  Every insurance company offers a variety of discounts to help drivers lower their rates, and these can vary from state to state.  Some examples include:

* The good student discount: This normally requires proof of a "B" average or better

* The good driver discount: If you have not had an accident in the past 3-5 years

* Safe vehicle discount: Get lower rates for having safety features such as air bags and anti lock   brakes

* Military or partnering organization discount: Lower rates for military personnel, and for members of certain associations or alumni organizations.

3)  Raise your deductible.  The higher you're deductible, the lower your auto insurance premium will be, but remember, this means you will have to pay more out of pocket should you file a claim.  If you rarely file claims or have a perfect driving record, you might be more willing to take the risk in order to lower your monthly car insurance payment.

4)  Multi-car savings.  If you have multiple cars on the same policy, the car insurance company will offer you a better rate than if you had separate policies for each car.  You can get additional savings by getting home, boat or RV insurance with the same company.

5)  Do your research.  The single best way to find cheap auto insurance is to shop around and compare quotes from multiple car insurance companies.  It is a good idea to compare quotes from at least 3-5 different insurance providers to ensure that you are getting the lowest rate possible.  You might find that one company offers you a rate $50-$100 lower a month!  Every company looks at different factors when determining your insurance premium, and some companies are more lenient on young drivers or drivers with a poor driving record.  You should also compare quotes every 6-12 months before you renew your policy.  Don't assume that the company you are currently with is still the best company for you. Insurance rates are constantly changing, and you could end up overpaying.

As you can see, there are a variety of different things that you can do to find cheap auto insurance.  Take your time, do your research, and make sure you have explored all of your options, and you should have no problem finding the lowest rate possible.