Insurance Information Institute Offers 9 Tips for Lowering Auto Insurance

February 3rd, 2010

In an effort to help reduce fraud and help drivers on the road, the Insurance Information Institute is offering nine tips to help lower auto insurance costs.

If you’re looking for a way to lower your auto insurance, then take a look at the following tips:

1. Shop Around

The first tip from the Insurance Information Institute (III) is to shop around for your auto insurance. By collecting quotes from a number of websites, you can get a more well-rounded idea of what the average quote for your car is, as well as being able to take advantage of the best price for your budget.

2. Determine Insurance Costs before Buying the Vehicle

One very smart decision to make before even purchasing a car is determine the auto insurance rates by vehicle.

This way, you won’t be blind sighted by an astronomical auto insurance rate after you’ve already signed on the dotted line for your car.

3. Request Higher Deductibles

Another great tip from III is to request a higher deductible on your auto policy. By increasing your deductible, you could lower your monthly premium costs – especially for comprehensive and collision coverage- by as much as 30 percent.

4. Reduce Coverage on Older Cars

If you have an older car with a replacement cost in under $10,000, it wouldn’t be smart to carry coverage that is valued at ten times the car’s value. By lowering the coverage amount on your older vehicles, you could lower your premium.

5. Buy More Than One Type of Insurance Through the Same Insurer

Many insurers offer discounts to policyholders who opt to purchase more than one type of insurance with them. So if you own a home and a vehicle, you might consider purchasing both policies with the same company to take advantage of the discounts it may offer.

6. Maintain Good Credit

Since many insurance companies look at your credit to determine your auto insurance premium, it’s good to make sure you regularly check your credit report and maintain a good credit score.

7. Take Advantage of Low-Mileage Discounts

Programs like Progressive’s MyRate are cropping up that allow customers to only be charged by how many miles they drive, versus other factors like age, driving history and credit scores. Take advantage of these unique programs to lower your auto insurance rate.

8. Inquire about Group Insurance

You may be able to receive a lower auto insurance premium if you opt into a group insurance program. These types of programs are usually available through employers or other associations.

9. Check for Additional Discounts

There may be other discounts to take advantage of depending on the insurance company you work with and your specific circumstances. There may be student driver discounts, older driver discounts, online discounts or even discounts for having a AAA card. You never know what’s out there until you ask.

Isn’t it great to know that there are tons of ways to lower your auto insurance? Now it’s your job to get our there and lower your premiums to give yourself the affordable coverage you deserve.