Tips on Getting the Cheapest Auto Insurance

Saving on car insurance can be easy by following a few simple strategies, including paying on time and making sure your information is correct.   While many insurance companies offer loyalty discounts that may make staying with the same company beneficial, there is no harm in shopping around for the best deal.

• Don't let your policy lapse.  Many companies charge heavy fees to reinstate policies.  There's also the possibility of court fees and ticket costs if you're caught driving with lapsed insurance.


• Pay on time to avoid late fees. 


• Pay your whole premium up front.  Most insurance policies are sold in six months terms.  If you choose to break it up into monthly or quarterly payments you are paying service fees. 


• Make sure you have good credit.   Higher credit scores may mean cheaper insurance premiums.


• Be a safe driver.  Go to court or traffic school if you do receive an infraction to avoid points being put on your driving record. 


• Make sure your driving record is correct.


• Remain with the same insurance company to receive loyalty discounts if you are already receiving a competitive rate.


• Review your coverage and make sure you aren't paying for anything you don't need.   Are options like rental car coverage and towing assistance really necessary?


• Drive as little as possible.   The less miles you drive each year, the lower your insurance premium will be.  If your mileage decreases, be sure to inform your insurance company.


• Investigate what discounts may be available for you.   Membership with Sam's Club, Costco or AAA might give you a discount on auto insurance.   Professional organizations or university alumna associations might also have insurance discount programs.


• Bundle your home and auto insurance together if possible.  Companies frequently offer discounts for purchasing multiple policies. 


• Require your teenage drivers to purchase their own auto insurance policies.


• Shop around.  If you don't feel you're getting the best rate, investigate the rates at other companies.  Go with the cheapest premium that meets your needs.