Car insurance is an essential investment if you want to protect your financial interest in your car, and it's a mandatory investment in many states. However, that doesn't mean that you can't save on the cost of that insurance when you have the opportunity. There are a few different ways that you can reduce your car insurance costs. Here's a look at some of the things that you need to know to help you save money on your auto insurance policy.
Automatic Payments Or Full Payment
When you get your auto insurance policy, opting for automatic deduction of your monthly payments or paying the full premium up-front can often come with a deduction on your premium. Sometimes, you can save as much as ten percent off the total cost just by choosing automatic deduction or paying your policy in full at renewal.
Defensive Driving Classes
Some insurance companies will give you a percentage discount if you show a completion certificate from a local defensive driving school or a state-sponsored driving education course. Whether you're taking it to reduce points on your license or taking it just because you can, it's in your best interest to ask about a possible insurance discount for completing the class successfully.
Car insurance premiums are based upon the level of risk associated with your policy. The more your car is on the road, the greater your risk of an accident. If you are looking for ways to save on your insurance policy, make sure that your annual mileage and car usage information are accurate. If you're insuring a car that you only drive occasionally on weekends, you don't want that car's policy rated for commuting at 12,000 miles per year. Talk with your agent about how you use your cars to be sure that you're being rated properly.
Have a passive alarm system installed in your car to help reduce your insurance premiums. Passive security alarms will reduce your rates by several percent because they don't depend on you to set them. These alarms engage automatically when you get out of the car and lock the doors, so they provide added security whether you think about them or not.
These are a few of the most common ways to save money on your car insurance. Talk with your insurance agent today for more help and information. They can examine your policy and find you any areas where you might be eligible for savings.