5 Ways to Save on Car Insurance

illustration courtesy of fotosearch.com

Don't we wish money grew on trees? With gas prices and the price of everything else rising, many families are having to make their money go as far as possible. In April, I posted 5 Ways to Use Less Gas. As I think of other areas where we can save, I'll post those as well.

Today, I want to share 5 ways you can save on car insurance.

1. The first way drivers can save more is by comparison shopping for car insurance online. Don't just get one quote and be satisfied with that. Even if you have been with an insurance company for a zillion years, there might be another company that can give you the same or better coverage for less. It might be a good idea to shop around every year just to make sure you are still getting the best insurance coverage for the lowest price.
   
2. Be a safe and responsible driver. There are times when accidents are unavoidable, but driving defensively and obeying the rules of the road are two ways you can do your best to avoid accidents and traffic tickets. No accidents and no tickets means you will get a cheaper insurance rate than someone who has accidents or tickets on his record. (Sidenote: Speeding is not worth what a ticket and court costs would run, it burns more gas than does abiding by the speed limit, and it doesn't gain you much time, either.)
   
3. Ask about multiple-car or car-house discounts. My insurance company offers a discount for insuring multiple cars with them. A previous insurer gave both the multiple-car and a car-house discount.
4. Opt for an older vehicle. If you are purchasing a vehicle, instead of buying the brand new model, see if you can find a gently used late-model vehicle. My experience has been that the newer the car, the more you will pay to insure it. Our Suburban is a prime example. If we had purchased a newer model, we would be paying quite a bit more in insurance right now.
   
5. If you pay monthly, find out if your company charges a fee for that privilege. If they do, switch to paying quarterly, semi-annually, or annually. If that seems too hard, divide the lump sum payment into monthly payments, and put that amount into a savings account each month so that you will have the money on hand when the bill comes due.

Here's a bonus tip: review your policy every time it renews. Do you use a vehicle for pleasure that was once used for work? Did you overestimate the miles you would use in a year? Do you still need comprehensive coverage on that older vehicle? Let your insurance company know of any changes you wish to make, and your rate should drop a bit.

Do you know of any other ways to save on car insurance?