The Complete Beginner's Guide to Saving Money

Finding ways for how to save money on auto insurance always seems to be a popular thing to search for. Our monthly bills add up so quickly these days with many things that seem to be “fixed” line items in our budget. You know, there’s the phone bill that costs a certain amount, the cell phone bill you hate, but can’t live without, the cable and energy bills that have long been fixed items we just simply pay every month.

What I’d like to try to help you tackle today is another bill that belongs up there; your auto insurance. Car insurance is a bill that many people feel once they have chosen a company and coverage, that’s pretty much what you pay indefinitely, unless of course something happens to raise it. Well, with auto insurance, you have control over some things that affect your rates, other things, you have no control over. So, sticking with the things we can control, here are 8 ways for how to save money on auto insurance you may not have known or thought about.

Your situation may change a lot over time, and auto insurance companies may take a different view of you as well. This is important to remember, especially if you’re going through a lot of “major life changes.” Maybe moving, getting married, changing jobs (which may change how much you drive, or discounts you may qualify for), maybe carpooling now to save on gas, etc. If any of this may apply to you, shopping around and comparing rates once or twice a year may prove valuable and end up getting you a much lower rate somewhere. There are lots a places you can quickly compare car insurance quotes online like Insweb.com.

My next tip for how to save money on auto insurance involves asking your carrier for whatever discounts they offer. Many auto insurance companies offer all sorts of discounts; some states even require it for people with clean driving records. Some of the many discounts that may be offered include discounts for various safety features that came with your car (like air bags, car alarms, antilock brakes, etc.), good student discounts, being over 50 yrs old, low annual mileage, working in certain professions, if you’ve taken any driving/safety classes . . . the list goes on.

My fourth tip for how to save money on auto insurance is if your car is older and paid off, you might want to consider eliminating your collision coverage. Collision coverage pays for any damage that you may cause to your own vehicle, and it can make up a large part of your insurance premium.

Though the thought may have just caused your heart to skip a beat, the simple fact is that the higher your deductible is, the lower your car insurance premium will be. If you get in an accident, it will cost you more, but the savings on your premium may be worth the risk.

This is an idea for how to save money on auto insurance you may not have considered. Before you plunk down your money on a nice, new, shiny car, get a quote from your car insurance agent and find out what it is going to cost you in premiums. They can fluctuate a lot depending on the make, model and year of the vehicle in question.

One of the most under-utilized discounts, and my next idea for how to save money on auto insurance, is a multi-line insurance policy. According to many sources, buying your home and car insurance from the same carrier can save you up to 15% or more on both of your premiums.

My next tip for how to save money on auto insurance involves how often you decide to pay your premiums. With most auto insurance carriers, you can set-up to pay your premiums monthly, quarterly, every 6 months, or annually. Many people choose to only pay monthly . . . and they pay for it! Most carriers will charge you various “administrative” fees and surcharges when payments are split up into installments. Even small fees can end up costing you by the end of the year. Many insurance carriers may actually give you a hefty discount for paying in lump sums; up to 15%-20% in some cases.

The last tip for how to save money on auto insurance, is to make sure you read and go over your coverage. Many people end up paying for things they really don’t need. For instance, if you have road side assistance through an auto club, you likely don’t need a towing clause in your policy. If you have health and disability insurance, you may not need medical payment coverage on your policy (requirements for this vary by state, so it may pay to find out). Look for other ways to cut-out extra coverage or unnecessary costs.

Hopefully some of these ways for how to save money on auto insurance can help lower your car insurance premium. Either way, don’t ever make the mistake of finding insurance and just sticking with it. Keep checking around and be sure to keep your coverage up to date. If you have any other ways to save on auto insurance, be sure to sound off in the comments section!