5 Tips For Lowering The Premiums On Your Auto Insurance

Auto insurance is legally required, but those monthly payments can get expensive. Wondering how to save a bit of money? There's lots of techniques that can help. Try these ideas.

1. Increase Your Deductible

Contact your insurance company online or over the phone and increase your deductible. For example, if your deductible is $200, boost that up to $1,000. If you get into your accident, your outgoing expenses will be a lot higher, but in the meantime, your monthly payments will be lower.

2. Get Rid of Unnecessary Coverage

Also take some time to go over your policy and get rid of any coverage you don't need. To really save, drop your collision and comprehensive coverage and just stick with the legally mandated liability coverage. If you have a car loan, that isn't possible—most lenders require you to carry enough coverage to replace the vehicle if it's totaled.

In that case, look for extras that you don't need. For instance, if you have rental car coverage, cancel it, and just take a bus or have a friend drive you if you get into an accident. In a similar vein, you may also want to cancel medical coverage if you have private health insurance or coverage through a government program.

3. Reduce the Number of Miles You Drive

Many insurers take into account how many miles you drive, and that has an impact on your premiums as well. If possible, use public transit or ridesharing more often to reduce your driving time. Then, contact your insurer and see if you can get a discount for reducing your mileage.

4. Work on Credit Repair

Auto insurers take into account your credit history when they assign a price to your plan. To save money, it can help to repair your credit. If you have outstanding bills in collections, try to pay them. Otherwise, try to get all your credit cards so they are below the credit limit.

5. Remove Young Drivers From Your Policy

The drivers on your policy can also impact your premiums. In some cases, if you have a young teen driver or even an adult drive who has been in a lot of accidents on your policy, that can drive up the cost, but in other cases, those drivers are grandfathered in at your rate. Contact your insurer to see what's happening, and if necessary, take those drivers off your policy. If you do that, however, remember that they should no longer drive your vehicle.

If these tips don't work, it's time to get a new insurer, contact an agent, like Northeast Insurance Agency, for a quote today to see how much you can save. 

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