The Insurance Information Institute, an association that tries to improve public understanding of insurance, recommends the following tips to help you pay less for your vehicle insurance.
Consider Higher Deductibles
Deductibles represent the amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive coverage, you may be able to lower your premium substantially. However, when raising your deductible, you should consider how much you'd be able to afford in the event of an accident.
Take Advantage of Low-mileage Discounts
Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.
Check for Safety Features
Purchasing a vehicle with a high safety rating or having anti-lock braking systems, airbags and other features on your vehicle may help lower premiums.
Invest in Anti-theft Devices
Tell your insurance company about any alarm systems, hidden tracking devices and other anti-theft devices installed in your vehicle. They may garner up to a 15 percent discount on your comprehensive coverage.
Show Your Insurance Company Loyalty
Your insurer may offer a 10 to 15 percent discount if they provide you with both homeowner and auto insurance policies.
Inquire About Education and Driving-related Discounts
Check with your insurance carrier for these common driving-related discounts:
- Safe Driver Discount—No moving violations or accidents in the past three years may reduce your premiums as much as 40 percent.
- Good Student Discount—Good grades could garner savings.
- Defensive Driving for Seniors—By taking a defensive driving course, seniors (especially those over 70 years old) may cut premiums by 5 to 10 percent.
- Driver's Education Discount—Some insurance companies may give you a discount for taking a driver's education course.
