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How to Lower Your Auto Insurance Premiums

by Amy Walters

Your car costs a lot to keep running, and gas prices seem to drain your wallet, so the last thing you want is to pay through the nose for car insurance. The rates aren’t likely to come down anytime soon, but you can take proactive measures to lower your premiums and still get great coverage. Here are some of them.

Choose a Higher Deductible

You pay high insurance premiums to lower your out-of-pocket costs; conversely, paying more in the event of an accident brings premiums down. If your driving record is clean and you don’t foresee any issues, consider a higher deductible. You could save hundreds of dollars a year, especially if you manage to avoid collisions or expensive repairs.

Drive Safely

Just like a construction management professional analyzes the risks and benefits of certain investments, an insurance agent will analyze your odds of car trouble. Keeping a clean driving record is one way to look less risky. Even little things like a fender bender or running a red light could raise your premiums significantly.

Drive Less

This is certainly one way to avoid an accident, but it could also help keep premium rates down. Many carriers base your rate on how much you drive, so leave the car at home and take the train to work twice a week. You’ll lower your bill, spend less on gas, and you have an hour or two to relax instead of watching the road.

Insure Other People

Buying in bulk saves money at the grocery store — it does the same thing when it comes to auto insurance. Buy all your driver policies from the same company; even if each policy costs more, you’ll save significantly for the whole package. To get even more savings, buy other insurance from the carrier, including home and life.

Drive the Right Vehicle

Your dream car might feel great to drive, but the thrill will wear off if your insurance costs keep going up. Insurers look at performance, cost for repairs and other variables when setting rates. As a result, you’ll save more by driving that sensible, slightly older car than if you’d rather drive around in an SUV or Porsche. A car with a thief deterrent system (built in or installed) will save even more.

Choose the Right Policy

Certain types of coverage make sense with one car, but not another. Collision coverage is appropriate with for a driver with a 5-year-old car and a fender bender, but not for a driver with a spotless record and a near-ancient car. The proper liability coverage depends on the value of your car, so talk to your agent before buying a policy that costs more than the car is worth.

You put a lot of money into your automobile — with the right insurance coverage, you can get more out of your policy for less.

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