How to Save Money on Your Car Insurance

How to Save Money on Your Car Insurance

It’s expensive to own a car.  First, you’ve got car payments, which can be substantial for a new car, and then there’s gas, registration fees and maintenance costs. For the most part, it’s difficult to save on any of those, but there is one thing you can save on and that’s your car insurance. The sales staff at The Chevy Source on Long Island, NY, a local Chevrolet dealer, suggested to us several ways that you can save money on your car insurance.

Bundling Discounts

Having multiple policies, such as car insurance and home insurance, with the same company can often save you money. In fact, all 10 of the top insurance companies now offer bundling discounts, and this could be from 10% to 20% in total savings.

Multiple Vehicle Discounts

Similar to having multiple policies, having multiple vehicles on your car insurance may save you money as well. Generally speaking, to qualify for a multivehicle discount, all the vehicles must be under a single policyholder’s name and those vehicles must be driven only by that person or by family members living in that person’s household.

Safe Driver Discounts

Being a safe driver and having a clean driving record will usually translate into savings with most insurance companies. Make sure when getting quotes from insurance companies that you are accident free and see if they have a discount policy regarding that.

Low-Mileage Discounts

Low-mileage discounts are offered by many insurance companies.  Be sure and let your insurance agent know if you infrequently drive or drive a small number of miles per year. Some companies may require electronic monitoring in order to qualify, which is typically a device that is attached to an electronic monitoring port (OBDII) in your car.

Good Student Discounts

The popular car insurers all offer a good student discount that applies to younger drivers who earn good grades in school.  No secret here, the insurance companies see students that get good grades as less likely to drive irresponsibly. Typically, to qualify for a good student discount, the driver must be younger than 25 years old, be enrolled full-time at a high school or college while maintaining a solid B average.

Sign Up for Automatic Payment

Some insurance companies offer a small discount for allowing automatic payments from your bank account. In addition to offering a discount on automatic payments, some insurance companies will also give you a discount if you pay your full premium at once.

Anti-Theft Device

Lastly, having an alarm system on your vehicle can net you savings with some  insurance companies.  This could translate to a discount of up to 20% on your comprehensive coverage, a significant amount of money on some cars.

Be Sure to Ask

You may find that your insurance company offers other discounts in addition to the ones we have discussed here.  Be sure and ask your insurance agent if there are additional discounts that you may qualify for next time you renew your policy.