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How to Lower Your Auto Insurance Premiums

Updated on June 3, 2010

Are you looking for information on how to reduce your auto insurance premiums? Here are some tips on how to do just that.

Shop around

If you take the time to compare quotes from other insurance providers, you may be surprised at how much you could save by switching to one of their competitors. Have a look at price comparison websites to see if you can get a better deal elsewhere and switch if you find that you can.

Take voluntary driving courses

It's probably not an ideal way to spend your free time but you can lower your auto insurance premiums by taking safe drivers classes. Assuming that you've not been ordered to take this kind of driving class as punishment for road traffic offences, insurance companies can look favorably on you as they can deem you to be a lower "risk" to insure.

Increased security and safety

Fitting your vehicle with devices that will increase security can lower auto insurance premiums as technically, it's harder for the car to be stolen. Think gadgets like anti-theft devices. On a similar note, adding safety devices can also be beneficial.

Opt for less popular vehicles

It might be nice to drive a desirable make of car but this increases your auto insurance premiums, not least because you're more likely to be targeted by vehicle thieves. These kind of cars can also be expensive to repair and insurance companies tend to be less keen to insure them.

Increase your deductibles

If you're happy to up your deductible (the amount that needs to be stumped up before your insurance cover kicks in), you can reduce your auto insurance premiums by quite a large amount. For a deductible of $1,000 or more, your auto insurance premiums can come down by as much as 40 per cent so this is worth checking out.

Ditch worthless coverage on older cars

Got an old car? Paying for collision coverage or comprehensive coverage can mean that your auto insurance premiums are actually higher than what the car is worth. In this scenario, it's pointless to carry on paying the premiums for these types of coverage.

Watch your credit score

Credit scores are often used to decide how much of a "risk" you'll be to insure. Generally speaking, a better credit score means lower premiums so you can increase your chances of getting lower auto insurance premiums by improving your credit score.

Low mileage discounts

If you're not clocking up the miles in your car, see if you can get discounts for low mileage. Not all insurance companies will offer this but it won't hurt to enquire.


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    • Hello, hello, profile image

      Hello, hello, 7 years ago from London, UK

      Thank you for pitting these great tips together which will help people so much.