Most drivers pay for their insurance through the same company for years without taking the time to shop around with other companies for discounts, or ask their current company for discounts Insurance companies know they are competing with other companies for your business

Make sure you’re not overpaying for your insurance each month by not checking on discounts for which you’re eligible 1 Comparison Shop Before assuming that you’re getting the best deal on car insurance, you need to research your options If you choose to purchase your car insurance online, it could save you hundreds per year The only problem with car insurance through an online dealer is that you can’t sit down and discuss problems or questions with a live person in their office

This doesn’t matter to some drivers, so if you’d like the cheapest car insurance, consider a virtual insurance company Even with online insurance companies, make sure you’re getting a few quotes as a comparison 2 Cheaply-Insured Vehicle When you’re car shopping, consider the cost of insurance when you’re ready to put your car on the road A sports car, even an older model, will not save on your car insurance every month

Family-friendly SUVs are among the least expensive to insure because they are driven most often by responsible drivers with children in the car Subcompacts are also cheap to insure since their drivers stay close to home Insurance companies take into consideration the lifestyle of certain car drivers when they’re setting their rates Cars with good safety ratings are among the ones with low insurance costs too Take this into consideration when you’re shopping for your next vehicle

3 Usage-Based Some insurance companies are allowing drivers to pay less when they can prove they are a good driver With good driver rates, they are able to save more than other drivers because the insurance company knows these drivers are less likely to have an accident In most cases, a device is plugged into the car, which records data on how hard the driver brakes, how often the person drives and when they drive Drivers who spend a lot of time in their vehicle at night or hit the brakes hard would not be eligible for a good driver discount

Usually, the data is collected and applied to the next policy 4 Low-Mileage Discounts Low-mileage discounts are like savings for those with good driving records When you’re less of a liability for the insurance company, they are more likely to offer you a discounted rate When someone doesn’t drive very often, they aren’t likely to have many accidents

This is a lower risk to the insurance company Each provider has a cap on the amount of mileage they consider low Seniors who don’t drive very often, people who work close to home and those who use the second car for short errands should ask their insurance company about discounts for low mileage 5 Research Discounts Don’t assume that your insurance company is giving you the best deal possible

Often, we will research insurance companies when we first start driving, but we’ll continue our policy year after year with the same company without asking for discounts Ask your agent about discounts that are available to you based on your driving record, car safety features on your vehicle or the low mileage you drive each year They won’t automatically be applied to your insurance policy You need to be proactive and ask about these discounts You could be getting a discount for being a good student and being married too

6 Occupation Discounts Professions that are considered low risk will often come with reduced or discounted insurance rates The insurance company looks at the statistics of people who typically hold low risk jobs and determined that they have less risky driving behaviors You’ll have to talk to your car insurance company directly, but many professions like nurses, pilots, accountants, scientists and teachers are eligible for discounts They are thought to be less likely to get into car accidents because they are more responsible due to the seriousness of their careers

In some cases, the person can hold a degree in an approved occupation but not be currently working in that field You’ll have to talk to your insurance company to find out if you’re eligible 7 Drop Collision and Comprehensive When you have an older vehicle, you might not want to pay high premiums over the years to maintain collision and comprehensive on the car If the car is totaled in an accident, you’ll receive the cash value of the car

An older vehicle might only be worth a few thousand or less, which means that any repairs will exceed the value of the car A car that is worth less than a thousand dollars shouldn’t have such high coverage Paying high premiums for comprehensive and collision doesn’t make financial sense 8 Group Savings If you’re part of a union or large professional group, you can take part in the savings offered to those groups

Organizations like AAA or AARP will offer their members discounts with certain insurance companies You can receive substantial savings when you already participate in these groups Professional and educational organizations like unions or alumni associations might be eligible for reduced rates for monthly insurance Sometimes, your employer might be able to get discounts for their employees You can investigate whether your company is involved in these reduced rates, or how they can get involved

9 Loyalty Discounts As a thank you to long time customers, many insurance companies offer lower rates to those drivers who stay with them for years The renewal or loyalty discount will vary depending on the insurance company’s individual policy on renewal discounts It could take a few years to receive these discounts though It’s important that you choose a company that has the best rates if you plan on staying with them for a few years to receive the discount

Each year before renewal, make sure you do a price comparison of other companies If you will save more by switching to another company, it wouldn’t make sense to stay for the loyalty discount 10 Training Discounts Drivers who take steps to improve their driving can reap the benefits of discounted rates Young drivers who participate in a driver’s education course will receive bigger discounts than other young drivers

Adults who have been driving for years can also receive training that could lower their rates too Defensive driving courses can be discounted by your insurance company as well This often depends on the age of the driver Drivers over the age of 50 might be the only ones who can get a discount on the class itself Defensive driving classes teach traffic laws, defensive driving techniques and driving in inclement weather

Find out whether your insurance company offers discounts for these courses 11 Monitor Your Teen When you put a teen on your insurance, you’re going to see a jump in the amount of money that you pay Teens are considered high risk drivers because they don’t have the experience of older drivers, and they can be more impulsive while driving Some insurance companies will offer discounts for customers who opt into their monitoring programs

They will install a camera in the teen driver’s car that will provide video and audio of the teen driving In some cases, there aren’t cameras, but the teen is monitored by GPS to see sudden braking as well as speeding Check with your insurance company to see if it’s offered since not all insurance companies have the program 12 Anti-Theft Device The insurance company is less likely to have to compensate you for a stolen vehicle if you have an anti-theft device on your car

They’ll give you a discount on your vehicle if there’s more security measures on your vehicle Often, a newer model already has an alarm, which the insurance company has discounted in your policy They’ll add more discounts for additional measures that secure your vehicle like an immobilizer on the steering column or kill switch on the ignition Talk to your insurance company to see what measures they’ll discount in your policy It has the added value of protecting your car from theft too

13 Pay a Higher Deductible The deductible is how much you’ll pay to have your vehicle repaired in case of an accident Often, the deductible is a few hundred dollars when you have a comprehensive or collision coverage policy If you agree to pay a higher deductible, your insurance company will lower the monthly premiums The amount they will lower will depend on how much deductible you agree to pay in case of an accident

You could go years with that monthly savings, but make sure that if there’s an accident or you have to make a claim with the insurance company, you can come up with the deductible 14 Bundling Discounts Choosing to bundle your car insurance with renter’s insurance, homeowner’s insurance or life insurance can save you money each month if you use the same insurance company If you currently have a policy with one company for your car insurance and another for your homeowner’s policy, you can talk to either company about making a switch You’ll have to ask about discounts for bundling the coverage

Check with both companies to see which will offer more of a discount You can shop around with other insurance companies to see what they offer for discounts too Insurance companies will not contact you about savings and discounts while you’re currently a customer It’s up to you to find the best policy for yourself Make sure you ask your insurance company about good driving discounts as well as discounts for loyalty, anti-theft devices and bundling

Don’t be afraid to switch your insurance company to get the best rates If you don’t need to visit a brick and mortar business, consider an online insurance company, which can cost you less money each month, but be sure that the company has good reviews before you switch