Four Ways to Save on Car Insurance

3. Drop Collision and/or Comprehensive Coverage

You also need to take into consideration what your car is worth. If your car is older, you may be carrying too much collision insurance, which covers damage to the vehicle sustained in an accident, or comprehensive coverage, which covers the cost of the car if it is stolen or damaged in some other way.

If the car has a Kelley Blue Book value of $2,000 or less, you may want to drop these coverages altogether. It's important to run the numbers and compare what you will pay for the insurance vs. how much you could get back if you ever have to make a claim. Between the insurance payments and the deductible, you'll likely come out ahead without any collision or comprehensive coverage for an older, less valuable car, even if something happens to it.

4. Get a List of Discounts

You may be surprised at the number of things that can get you a discount on your auto insurance, many of which you probably never knew about. That is because many insurance agents won't always tell you all the discounts available unless you specifically ask for them.

Since each insurance company is independent of the others, some may offer specific discounts that others don't. Here is a list of some of the possible discounts:

• Safe drivers: If you have had a safe driving record, it can qualify you for a discount.
• Courses: Some companies have approved defensive-driving courses you can take to brush up on your driving skills that will entitle you to a discount. These courses can sometimes cost you a few dollars, but the savings outweigh the expense and can be applied to several years of insurance bills. Much like defensive-driving courses, a driver's education class may also qualify you for a discount.
• Anti-theft and recovery devices: Some anti-theft devices, like steering wheel locks, will get you a discount on your insurance. Likewise, devices like LoJack or OnStar that help locate a stolen vehicle also can lessen your premium.
• Seat belts: By signing a paper that indicates that you always wear your seat belt when driving, you can get a discount.