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Four Ways to Save on Car Insurance

When was the last time you reviewed your car insurance? If you are like most people, it was probably when you first purchased the policy and you have had it automatically renewed ever since.

If that is the case, or if you haven't reviewed your insurance in the past year, you are likely spending more than you need to on your auto insurance.

You should review your car insurance on a yearly basis. Many people like their current insurance company and don't want to switch. But even if you are perfectly satisfied with the insurance company, bringing in competitive offers from other insurers can help you negotiate a better rate. If you are willing to switch companies, you can likely save even more money.

Here are a few steps you can take to save money on your auto insurance:

1. Use the Internet

The Internet has greatly evened the playing field when it comes to insurance. It has increased competition between car insurance companies and given consumers a much easier way to compare rates and analyze coverage that insurance companies offer.

There are a wide variety of insurance comparison sites that you can use to compare rates. Simply use any search engine and plenty will show up. It pays to use several since they may contain different car insurance companies in their engines. All you need to do is input your information and if a better deal appears, you're on your way to saving money.

If you don't want to switch car insurance companies, take in your lower quote and explain that you don't want to switch, but have received a better offer. Your insurance agent will do everything in his or her power to get you a competitive price. From there you can choose whether to stay or go to the other company. Either way, you will be paying less on your insurance premiums.

2. Raise Your Deductible

Another way to lower your car insurance premiums is to raise your deductible -- the amount you have to pay before your insurance kicks in to cover a claim.

If you have $1,500 worth of damage to your car and a $500 deductible, you must pay the first $500 and the insurance company would pay the rest. While a lower deductible may sound preferable, it means you'll pay much more for the insurance -- even if you don't use it.

You should raise your deductible as high as possible, as long as you will have the money to cover it should you ever have an accident. Moving your deductible from $500 to $1,000 can knock up to 30% off your yearly car insurance payments.
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