Saving money on car insurance is not difficult or complicated. It requires a bit of time, but the savings you get can be significant:

1.   Shop Around: Auto insurance is like anything else; you have to shop around to get the best deal. Moreover, price is only one variable. When you compare car insurance rates, you have to pay attention to the amount of coverage you receive and the types of coverage included in the price. Often times, an auto insurance company will be able to provide you with a car insurance quote by reducing the coverage you receive – potentially leaving you in a lurch. For example, comprehensive coverage is frequently dropped in order to provide you with a lower auto insurance quote; if you do not have comprehensive coverage, you will not be able to claim it if a tree falls on your car, a hail storm dents your car and busts the windows out, or the damage to your vehicle if someone steals it.

2.   Get Discounts: To save money on car insurance, you also have to pay attention to the various discounts that may be available. Often times, you can get a discount on your car insurance for taking drivers education classes (from a few hour online defensive driving courses to traditional drivers ed courses – no matter how long ago you took them). Many drivers get discounts for being part of different organizations and civic groups, such as AAA, AARP, the Moose, Mensa, etc. Having certain safety features and theft deterrent devices can also help you save on auto insurance. For instance, having antilock brakes, side curtain airbags, or a steering wheel lock will frequently earn you a discount on your auto insurance.

3.   Reduce Coverage: You can also save money on car insurance by reducing your coverage. While reducing your coverage in general is not a good idea, in some cases it just makes sense to reduce the coverage you have on damages you do to your own vehicle. If your vehicle is only valued at $1,500 and you are just waiting on an excuse to get a new one, you just do not need as much coverage as someone with a car less than five years old and in good condition. By reducing your coverage, you can save as much as 40 percent off your current car insurance rates – money you could save toward the purchase or down payment on a newer vehicle.

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