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4 Ways To Save on Your Auto Insurance

Most drivers spend way more on car insurance then they need to. In 2012, the average American driver was spending more than $800 a year on car insurance policies. Regardless of how much you currently spend on this expense, there are plenty of ways for you to save. Even saving a little bit each month will help tremendously.

1. Be a Safe Driver

Most policies will offer discounts to drivers who have not been in an accident or have not gotten a ticket recently. In the event you do get a ticket, you can prevent your policy from increasing by attending traffic ticket school. You may not be able to decrease your rates anytime soon, but you can at least prevent it from going higher.

2. Improve Credit Rating

Car insurance agencies look at an array of factors when determining your premium and deductible. One of those factors is your credit score. If your score is currently in the fair range between 650 and 699, then take measures to get it in the good range of over 700. Paying your bills on time and staying debt-free are a couple ways to get a better score.

3. Drop Insurance You Do Not Need

You always need to have some kind of auto insurance to drive legally. However, there may be certain coverages you can do without. For example, if you drive an old car that is on its last legs, then you may not need collision insurance. This coverage normally offers a payout if your vehicle ends up needing repairs. For clunkers, you may not get that much, meaning the amount you pay for it each month will not ultimately pay off.

4. Look Into Discounts

Depending on where you get your insurance from, you may qualify for certain discounts. For instance, if you are a student with excellent grades, then your insurance provider may give you a “good student” discount. Additionally, drivers of all kinds may qualify for discounts if they take refresher courses from their local DMVs. If you install safety and anti-theft equipment inside your vehicle, then additional discounts may be on the table. When in doubt, always ask your provider.
Even if you only end up saving $20 a month on your car insurance, that still adds up to $240 in savings over the course of a year. That kind of money will help a lot when it comes to paying for other bills. Never pay more than you have to, and see how you can start saving.