Tips To Save On Car Insurance

Car insurance is one of the largest payments that most people will make. Due to the cost of car insurance, it is important for policyholders to make informed decisions about their coverage to get the best deal possible. There are various methods of saving on car insurance that people may be able to use.


Higher Deductibles

A car insurance deductible is the amount of money that a policyholder will have to pay out of pocket before the insurance company will pay on a claim. For example, if a person has a $1,000 deductible and has a covered claim for $4,000 in damages, the policyholder will have to pay $1,000 and the insurer will pay the remaining $3,000. As a higher deductible will reduce the insurer’s risk, higher deductible plans have lower costs than lower deductible plans. However, a policyholder needs to be certain to have a deductible amount that he or she can pay. In addition, most lenders will have a maximum deductible limit for borrowers.


Liability Only Coverage

Liability coverage is the most basic type of auto insurance. Liability coverage only provides coverage for damages that the policyholder may cause to another people’s property. For example, if a policy holder has an at-fault accident with another vehicle, the policy will only cover the damages to the other vehicle. Liability insurance should be considered for older vehicles that have little value and that the owner could replace without the assistance of insurance.



Most insurance companies provide incentives in the form of lower rates to customers who have more than one insurance policy with the company. For example, a company will offer lower rates to a person who has automobile insurance and home insurance with the company as compared to a person who only has one type of coverage. Companies offer these discounted rates for multiple policies as they decrease the overall risk to the company.



Insurance companies offer various vehicle insurance discounts for policyholders who meet a number of different criteria. Many insurance companies give discounts to drivers who have completed driver education or defensive driving classes. Teens and young adults have insurance rates that are much higher than older adults. However, insurance companies typically provide discounts for good students who maintain a minimum grade point average.


Shop Carefully

While the driver is the most important variable in determining the cost of an insurance premium, the vehicle that is being insured will also play a role in the cost of insurance. For example, it is generally more expensive to insure a convertible than it is to insure a four-door sedan. The reason that sports cars are more expensive to ensure is that they are involved in more wrecks and more expensive wrecks than are family sedans and other vehicles. In addition, vehicles with higher safety ratings are less expensive to insure as they do a better job of protecting the driver and passengers from injuries.

As each insurance company sets different rates for different vehicles, car owners should get rates from various companies to see who provides the best deal. By comparing rates and choosing the right coverage, a person can save a significant amount of money on auto insurance