7 Ways to Cut Your Car Insurance

You may be eligible for discounts based on age, driving record, memberships or otherconsiderations. For example, drivers who are 55 and older typically qualify for a senior discount. Ifyour household includes teen drivers, they may qualify for "good student" discounts. Onlinedefensive driver courses may reduce your premium too.

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5. Shop around for a better deal.

If you think you can get better coverage for the same amount or less with another insurancecompany, obtain quotes online and talk with several insurers. Many consumers fail to look aroundfor lower car insurance rates -- and could be paying higher premiums as a result. If you'redispleased with your current insurer, tell the company that you're considering a switch. The insurermay want to give you a price break to hang on to your business.

Your car insurance company will determine your rates based on factors such as your age, drivingrecord, geographic location and driving habits. But if something has changed that could reduce yourrates, you'll want to make sure your car insurance company knows about it.

Many insurers offer discounts if you buy at least two policies from them. A typical combination is carand home insurance policies. Discounts can be substantial. For instance, Nationwide customers insome states receive as much as a 25 percent discount for bundling.

Points on your license mean higher insurance rates. It's worth your while to go to court to get pointsreduced on infractions. In addition, many states allow you and drivers in your family to completecourses to reduce those points.

2. Bundle your policies.

6. Guard Your Driving Record.

3. Ask for discounts.

Let's say you live in Michigan, where the typical household shells out a whopping 8 percent of itsannual income on car insurance. Or maybe you live someplace where the rates are cheaper-Colorado, say, or Massachusetts-but you'd like to save some cash. Is there any way to reduce youryearly payments?

4. Ensure your rates are based on accurate information.

Here are some more tips.

"While you're probably not going to move to a new state just because of car insurance costs, themost important thing to remember is that - regardless of where you live - you can get a better dealthan the Average Joe by shopping around," says Egan.

1. Don't pay for more coverage than you need.

Absolutely, says John Egan, the managing editor of CarInsuranceQuotes.com, which recentlyreleased a state-by-state breakdown of car insurance costs in all 50 states.

If your car is over, say, 10 years old, and you're carrying collision and comprehensive coverage, youmay want to look at dropping that coverage. State laws don't require that type of coverage, but moststates do require basic liability coverage. Â You may cut your premium by 20 percent or more bydoing this.

Deductibles as low $100 on your collision or comprehensive insurance raise your premium.Consider a $500 or $1,000 deductible-that's the amount you must pay when there's claim-and youmay save hundreds.

Jul 31, 2012 6:00am

7. Raise Your Deductibles.

You may be eligible for a lower rate if you've recently modified your driving habits. Example: Younow work from home rather than at an office and are driving far fewer miles each week.