If you want to drive, you have to invest in car insurance. It is required by the law. If you don’t and get in an accident, you will be have to pay a fortune to get the other person’s car fixed and pay for your own as well. In addition, you will be in trouble with the law and you might lose your drivers license.

Car insurance can be expensive; however, there are ways to save to make sure that you are not overpaying for your plan. Here are the best ways to make sure you are not overpaying for your car insurance policy:

Look Into Getting A Bundle

You can get a better deal if you bundle multiple policies with the same insurance company. If you have life insurance and homeowners insurance you should look into putting both of the policies with the same insurance company as your car insurance. You can save upto 10% or more by putting all three under the same company.

Even if you bundle all your policies with the same company, you should still shop around and make sure that it is the best deal. Do not automatically think that bundling your deal will give you the best price.

Shop Around

Do not just purchase an insurance from the first company you speak with. Make sure you shop around! Each company has a slightly different algorithm to calculate their insurance premiums. In order to save money on car insurance you will have to compare companies. 

If you have been with your insurance company for awhile, you should definitely see what other companies offer. By switching companies you can get a good deal as a new customer. 

Take Defensive Driving Classes

A lot of car insurance companies provide a discount if you take a defensive driving class. You can get a monthly discount if you show proof of taking defensive driving. You won’t save a significant amount, but the savings can add up to  $100 a year.  Also, defensive driving classes can help you avoid accidents in the future. This of course can help you save money by having a clean driving record. 

Avoid A Traffic Ticket Or Accident

For all of the speed racers out there, SLOW DOWN! By slowing down and not getting tickets you can keep your driving record free of tickets. If you get a speeding ticket, it can raise your insurance premium for several years. If you want to have a good insurance policy, drive slowly and follow the traffic rules.

Also, drivers who speed are more likely to get into an accident. If you have an accident on our record your insurance cost will go up. Be sure to be careful when driving and be aware of your surroundings. 

Time To Get Rid Of The Sports Car

Sports cars have a higher car insurance rate. Cars are rated based on their price, model and class. Minivans and SUVs that are reasonably priced have among the cheapest car insurance policies. So before you buy your next car, keep you car insurance costs in mind. The shiny sports car you are eyeing is definitely nice, but it can cost you extra thousands of dollars a year on car insurance.

Raise Your Deductible

You can lower your monthly premium by raising your monthly deductible. A lot of policy holders have a $500 deductible. You can lower your monthly rate by increasing your deductible to $1000. This is an easy way to lower your monthly premium. This can help save you a few hundred dollars a year.

Increase Your Credit Score

This tip is not as well known. By increasing your credit score you can lower your auto insurance premium. Your credit score is a big part of how much you pay for your car insurance. So it is wise to check your credit rating and figure out how you can increase it.

Get Good Grades

If you have a teenager that is beginning to drive, encourage him or her to get good grades. These good grades can be shown to the insurance company and you can get a discount on his or her car insurance policy.

The law requires you to get have auto insurance. It is to your best interest to get the best car insurance you can afford. Of course, you should take the tips above to see how to lower your over all cost without sacrificing your policy.



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