How To Save Money on Car Insurance

Its pretty easy to save money on car insurance.  All that is required is some effort on your part to do some research.  Consider these seven tips as you begin your quest:

- Shop around. According to a study by JD Power, only 39% of Americans looked for new auto insurance last year.  The next time you need to renew, get annual quotes from other companies.  Be sure you look at local companies, too, not just the ones on the net advertising low rates.

- Cut coverage on older vehicles. Once your car is 10 years old, the cost of repairing it could be more than the car is worth. Consider scaling back to just "injury and property damage" coverage on all your older cars.

- Bundle insurance policies. Use a single company to insure your home and auto.  This could bring your rates down by more than 10% a year.

- Consider being monitored. Many insurance companies now offer drivers a discount if you install a device (plugs into your OBDII port in your car) that lets them monitor your driving habits. Progressive, for example, gives discounts of up to 30% for drivers who drive conservatively.  

- Do you qualify for a mileage discount? Some companies will offer you a discount if you drive less than the average number of miles per year. 

- Do you have good credit? Your credit score could be factoring into your insurance rate.  Make sure your agent knows what your credit score is.

- You don't always have to file a claim. Filing a claim following an accident can raise your premium by an average of 30-40%, if you are at fault. So if you're involved in a minor collision, carefully consider whether the money you'll get back will exceed the premium hike. For small accidents, it might be best to leave blemishes on older cars.

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