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How can I lower my car insurance costs?
First, comparison shop for car insurance quotes to receive the best deal. Then, make sure to ask about discounts. You may receive a discount for being good driver, taking voluntary driver-training courses, being a low-mileage driver and having certain safety features in your car. Most insurers also offer a multi-line policy discount if you have another car or your home insured through the same company.
When you opping for a new car, ask your insurer how much your car insurance rates will change based on the vehicle you plan to purchase. For example, cars with high theft rates or with expensive parts will cost more to insure.
There are other ways to reduce premiums. Consider increasing your deductible. You will save a large chunk of change but be prepared to pay more out-of-pocket in the event of an accident. Also, consider dropping collision or comprehensive coverage if you have an old car. If repair costs will likely exceed the value of the car, it doesn't pay to keep that coverage.
Finally, you can save some money by reducing your liability limits to the minimum required by your state. However, most insurers do not recommend this move because it opens you up to substantial financial risk in the event of an accident. If you have assets to protect, it's a good idea to have adequate coverage. Liability limits recommended by most insurers are $100,000 for bodily injury coverage per person, $300,000 for bodily injury coverage per accident and $50,000 in property-damage coverage per accident. For more, read 11 ways to save on your auto insurance policy.
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