How to Save Money on Car Insurance

Car insurance is probably one of your largest monthly expenses, especially if you’re just getting started in your career. The following steps can help reduce the costs.

Get credit for discounts. Find out if you can save money by paying your premium in a lump sum, choosing paperless billing, bundling your auto insurance with home or renters insurance, and getting good grades for high school or college students. Ask about discounts for low mileage, certain occupations (such as teachers) or members of certain groups (such as alumni associations).

Increase your deductible. Boosting your deductible from $250 to $500 or $1,000 can cut your premiums by up to 20 percent per year and prevent you from filing small insurance claims that could cause your insurer to raise your rates. Save the extra money in an emergency fund to cover any claims.

Shop around when you have life changes – such as if you get married, move, or buy a new car. The company that had the lowest rate for you in the past may no longer be your best option. Find contact information for other insurers from your state insurance department (visit www.naic.org/map for links to your state) or an agent can help you shop.

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