Insurance is the major money sucker of every car owner’s monthly expenses. However, there is a possibility of reducing this expense and control your auto insurance costs. There may be various reasons why you may be paying excess insurance premium. When you analyze the root cause, it is easy to build up a perfect strategy to save money on your auto insurance.

Here are some handy tips to help you save money over your car insurance.

Check insurance coverage prior to buying a car

Some cars may unnecessarily cost more money on the insurance. Use the rule of thumb – in case your car’s net worth is less than 10 times your premium, then you better drop the comprehensive and collision coverage as you can save more on that. If you have cars which are prone to auto theft or accidents may have higher premiums. Either install the anti theft and other safety devices or do not buy such a car.

Check if you can get higher deductible

When you buy collision or comprehensive coverage, you will have to pay deductible which is the out-of-pocket amount when you have an accident. Lower the deductible, higher is your premium. However, when there are no accidents, you will have to still pay the same premium. Instead, if you increase your deductibles, then you may be able to save on the monthly premium you pay. Generally increasing your deductible from $500 to $1,000 can save you 40% over the monthly premiums.

Look for discounts

Many insurance companies offer discounts such as low-mileage, multi-car, defensive driving, multi-policy, anti lock, anti theft, senior citizen, college students, safe driver discounts and many others to their customers. Make sure that you regularly check with your insurance providers about available offers and discounts.

Do not buy unnecessary coverage

Regularly review your coverage in order to avoid unnecessary payments. In case you have multiple insurance, try to bundle them with one single insurance provider. You may get better rates this way. You may want to consider dropping some of the services your auto insurance offers when you already have the same offered by your motor club. You can remove the rental reimbursement coverage when you already have another car at home in order to save over alternative transportation.

Credit history

Credit history is a very important factor which can affect your car insurance premiums. The better your credit is, lower would be your premium. Make sure to keep a check on your debt and pay your bills regularly to improve your credit.

Multiple policies from the same insurer

You may find one insurance policy may offer something which you need and another insurance what you desire. Try to bundle the insurance policies and keep them to a minimum so you don’t have to pay more for multiple insurances. Besides this, you can also save more money by insuring your entire family with a single insurance provider as there is every possibility of getting group discounts for the policy selected.

Thomas McCarthy