Tips to Lower Auto Insurance Rates

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What can be done to save on the high costs of insurance premiums? Insurance rates are determined by factors: driving history, credit history, how many cars sit on the drive way, how far one drives, history of defensive driving and many more. These factors absolutely determine insurance premiums and simply ignoring or not knowing these tips may have consequential cost increases.

Keep in mind, auto insurance is a necessity to drive in most states and the minimal requirements vary from state to state. For example, Texas requires its residents carry 30/60/25; that is $30,000 per person for bodily injury, $60,000 per occurrence for bodily injury, and $25,000 per occurrence for property damage. Not having enough when it is needed will have a big impact on anyone’s wallet.
Always know what the state minimum requirements are. Do not buy more than is needed and do not assume the minimum requirements are best. Make sure coverage selected is ideal for the vehicle that is being covered. There are probably individuals who currently have full coverage insurance, also known as Casualty and Collision, premiums that exceed the value of the vehicle being driven. For instance, does it make sense to have a car policy in which the total premium equals $1,300 a year, but the value of the vehicle is only $1,000?
Unfortunately, some consumers choose not to purchase auto insurance because they may consider the risk of being caught is minimal compared to their perceived high out of pocket cost paid month to month. This thought process can be costly if the individuals gets into an accident, has a vehicle stolen, or is caught by law enforcement and found to have no coverage.
Shop around for coverage. Take insurance shopping seriously and look around at different avenues just like any other major purchase. Automobile insurance rates vary widely depending on the insurance company chosen, the type and amount of coverage needed, and what kind of vehicle is owned.
Ask the insurance company what type of discounts they offer. Most insurance companies allow for different types of driving education classes to be taken for discounts. One example is a defensive driving course, like Comedy Driving, Inc. These defensive driving courses can sometimes save consumers up to a 10% discount. Here is a list of other discounts which may be applied.
Drug and Alcohol Awareness Classes — these classes can lower insurance premiums by as much as 5%.
Multi-car Discounts—it’s more efficient to have all vehicles owned under the same policy.
Multi-Policy— For example, ask if there is a combo deal for automobile and homeowner’s insurance within the same company. This can save a good amount of money.
Anti–Theft Devices — Auto alarm systems and other such equipment may qualify for a discount on comprehensive coverage.
Passive Restraints — A discount for air bags or automatic seat belts.
Low Mileage — Believe it or not motorists who drive less than an established number of miles each year may qualify for a discount.
Good Driver — having no recent accidents or moving violations may provide an added discount.
Mature Driver — Drivers over the age of 50 may be entitled to a discount.
Continual Coverage – Drivers that maintain continual coverage with their current insurance company will see a rate reduction simply by staying with the same company.
Educational Discounts – Some insurance companies offer discounts for grades as well as completed degrees.
Additionally, good credit history does help when searching for insurance coverage. It seems unfair, but a high credit score could mean a low insurance premium. If there seems to be a discrepancy with credit history when it is pulled, know that an individual has the right to check their credit history once a year for free.

The best way to save on the cost of high auto insurance is to know the markets that are available and never assume loyalty with one individual company will result in the best rates.

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Jeffrey Bitner
Comedy Driving Inc
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