7 Ways to Save Money on Car Insurance

Here are seven distinct ways that, if you only take a few minutes to put these suggestions into practice, you might be able to save hundreds of dollars on your auto insurance:

1. Reject coverage that is unnecessary

When you examine your auto insurance coverage every six months or so, you might discover that you are paying for a portion of your policy that you no longer use, even if it turns out that your existing coverage is still the best deal available.

Your insurance needs vary more frequently than you might realize, in addition to the regular changes in insurance costs. The list continues on and on whether you've added a new teenage driver, a new vehicle to your insurance, moved to a new zip code, etc. All of these factors have the potential to result in you paying for insurance that you no longer require.

2. Look for bargains

Never assume that since you looked into every vehicle insurance discount available six months ago that there aren't any new reductions available now for which you might qualify. Every time a new company announces a different discount offer to improve their market share, new chances to save money with a car insurance discount program arise.

3. Raising Credit Score

It goes without saying that higher credit scores translate into lower auto insurance prices. You may have put a lot of effort into raising your credit score over the past few months in order to be eligible for loans with lower interest rates, such as those for a home or car, and you are now beginning to see some of your efforts start to bear fruit.

Don't miss the chance to test if your vehicle insurance prices will also go down when your credit score goes up. This is something you should do whenever you notice a rise in your credit score. You've put a lot of effort into raising your credit score, so why not take a moment to check if it can help you not only get a cheaper interest rate but also a lower vehicle insurance quote?

You deserve to treat yourself to a great supper at your preferred restaurant, so take some of the money you saved on your auto insurance!

4. Use your credit card to pay your premiums

Want to reduce your overall auto insurance premiums by 1 to 5 percent simply by switching your payment method? The typical cash back credit card will provide you 1 to 5 percent cash back, which is equivalent to receiving a statement from your insurance company and only having to pay 95 to 99 percent of the total amount.

One to five percent may not seem like much, but as you can see with a cash back credit card calculator, that money can start to add up quickly. Depending on how much money you spend each month, if you use that cash back card for many of your purchases, your savings could eventually be enough to pay for an entire year of college tuition after fifteen to twenty years!

5. Advise your children to maintain good grades.

Almost all of the major auto insurance providers provide a good student discount of some kind. You will save money if your children receive good marks. Some businesses provide discounts for a passing C, but the majority will give you savings of between 5% and 15% if your student consistently earns a B or an A.

Perhaps it's time to give your kids a portion of those funds as a financial inducement to maintain their academic excellence (after all, why not just let the insurance company pay your kids to obtain good marks instead of you?).

6. Enroll in a driving school

Although no one wants to confess that they aren't the world's best drivers, if enrolling in a defensive driving course would save you time and money, why not? It's understandable if you don't want to inform your spouse that you are doing so.

At least you aren't among the worst drivers in the world, or at least I hope not! One driving course can save you money on your auto insurance for the rest of your life.

Ask your auto insurance provider what kinds of courses and training facilities qualify for a discount on your coverage.

7. Check to See if Your Job Can Save You Money

Did you know that different risk classes are actually assigned to various types of employment when actuaries determine car insurance rates? While some professions are allocated an additional amount of risk that raises their rates, others have affordable auto insurance.

In general, professions like engineering and teaching will pay less for vehicle insurance than business owners and attorneys. However, the various occupation risk assessment algorithms will vary from one insurance company to the next. So, if you're an engineer who runs your own business, what do you name yourself? You inform me.