2. Etching Your VIN. There is VIN etching available and most of the time car insurance companies offer this for free. It makes your vehicle 64% less likely to get stolen. Avoid a stolen car and you’ll avoid a claim.
3. Check All Available Discounts. Check the list of discounts that your car insurance company offers. Be sure you are taking advantage of all the ones you qualify for.
Here are some common car insurance discounts to look for:
- Driving habits: Low mileage or a short commute.
- Renewal discounts: Rewards customers who have stayed with the same insurance company for a long time.
- Multiple cars: Discount for insuring all your cars with one carrier.
- Training classes: Defensive driving and driver training classes.
- Car safety features: Air bags, automatic seat belts, anti-theft devices, and anti-lock breaks.
- Good students: Teens with good grades.
- Accident free: Multiple years with a clean record.
- Senior citizens: Discounts for older policyholders.
4. Shop Around. You can save up to $500 per year on a policy, just by getting quotes from multiple companies. Just make sure you stick with a car insurance company that is financially stable.
5. Consolidate Your Policies. Many companies offer you a discount on your car insurance to insure your house or other policies.
6. Maintain a Healthy Credit Score. Find out when your credit report is ordered. Try to have a good credit score for when your insurance company checks your credit. You can call your agent to ask when it will be ordered and how often.
7. Drive a Low Risk Car. When you are in the market for a new car, check the crash test ratings for safety. In addition, see the insurance loss data by make and model to get an idea of which cars are the least and most expensive to insure based on industry data.
8. Take on More Risk. You read everywhere that you should get a higher deductible, but why? Your ultimate goal is not to insure against scratches and dents. Rather your goal should be to insure against something that you cannot afford to happen. Save money each month to cover the cost of a $750 brush with a pole. Use insurance to cover the cost of a $400,000 accident.
9. Partially Insure Yourself. (This is for collision only) Avoid collision insurance on a really old car worth less than $2,000. Chances are you’ll end up paying more in premiums than the car is worth. Just make sure before you drop the coverage that you have the money in the bank to replace it if it is totaled.
10. Understand the Laws. You’ll need different coverage based on where you live. Most states have a traditional tort liability system. Negligence determines who will pay. However, if you live in a no-fault state, you need to understand how it works and why you’ll need different insurance coverage.
11. Purchase an Extra Car. As unlikely as this sounds, purchasing an extra car can save you in the long -run. Aim to buy a junker that may only be worth a few hundred dollars. The premium on your other cars will most likely drop significantly and the cost to insure the junker will be dirt cheap.