Want To Save Money On Car Insurance? Actions You Can Take Now To Reap Real Savings

Car insurance premiums are a mandatory expense in most American households. Unlike some other types of insurance, most states now require drivers to maintain basic coverage to ensure financial responsibility in case they are involved in an accident while driving. But even though car insurance is required, the costs can vary greatly, so it makes sense for drivers to search for ways in which to reduce premiums. If you are a driver who would like to save money on your car insurance premiums, taking the following actions is a great place to start. 

Earn discounts by combining policies

One of the easiest ways to see discounts on auto insurance premiums is to combine coverage for more than one type of insurance with a single insurance company. For instance, most insurance companies offer some type of discount for drivers who purchase their car insurance along with home, life, health, or other insurance coverage at the same time. Since the amount of the discount available can vary, always check and compare several insurance companies before making a final decision. 

Consider opting to drive a different vehicle

Another excellent way to reap instant savings on car insurance is to choose the type and model of vehicle you purchase according to the amount it will cost to insure. Cars that are considered to be at much higher risk for being stolen or those considered to be at higher risk of being involved in an accident, such as high-performance or sport models, are typically much higher to insure. If you currently drive a higher risk vehicle, consider trading it in on a mid-range vehicle with higher overall safety ratings. 

Avoid monthly payment options

Car insurance premiums that are paid monthly or even quarterly typically cost several dollars more than those that are paid in advance for six or twelve month terms of coverage. A good way to budget for this higher annual payment amount is to continue to set aside an additional one-twelfth of the annual payment amount each month, so that it will be ready each year when the policy is up for renewal. 

Maintain good credit and a good driving record

Credit scores and driving records are just two of the factors used by insurance companies to set premium amounts. Since poor credit and poor driving habits can both be indications of risky behavior, many insurance companies charge higher premiums to insurance applicants who have these problems. Drivers who want to reduce their vehicle insurance costs can do so by working to improve their credit while also taking care to obey all traffic laws and to exercise caution when operating a vehicle. 

For even more ways in which to reduce the amount of your family's car insurance premiums, take time to discuss your concerns with a car insurance agent such as those at Hayes McDowell Insurance Agent soon.