5 Ways to Save Money on Your Auto Insurance Today

The cost of auto insurance is something that concerns almost all drivers. As the years go by, the price of replacing and repairing vehicles seems to increase, placing a premium on quality affordable auto coverage. If you are concerned about your rates and are looking for ways to save, there are some simple things you can do today to get more for your auto insurance premium dollar.

Shop Around and Compare Insurers

First and foremost, it is crucial to understand the potential savings that can be had simply by shopping around among multiple carriers. According to J.D. Power, this is actually the single most effective way to save on auto insurance. Many major auto insurance online providers such as Esurance advise their customers to shop around and make it easy for them to do it.

These days, there is no excuse not to shop around and compare auto insurance costs and coverage. Take a look at a good number of companies and see how much money you might save. For many of us, the tendency through the years has been to stay with one company for fear of losing out on loyalty discounts, for example.

But many insurers today will actually credit their customers for time spent with their previous company and match those discounts, anyway, so it is always a good idea to look around.

Increase Deductibles (with Caution)

When you take the time to compare prices from several auto insurance companies, it is also a good idea to think about looking at the potential impact of adjusting coverage. One simple example is to increase deductibles, which in simple terms are just the out of pocket cost insured drivers have to pay in the event of an accident or other claim. Increasing the deductible on a policy will help lower prices, especially in full coverage plans.

But any increase in deductible should be done with caution. Nationwide recommends that customers set any net savings aside when they make this type of coverage decision, so they have the cash available in the event of a claim to cover their costs. Nationwide also offers a Vanishing Deductible that has more to do with good driving than cut-rate coverage. Under the terms of this program, drivers can save $100 off their deductible for every year of safe driving.

Save More by Driving Safely

In fact, safe driving is a common thread throughout many of the best and most effective practices for saving on auto insurance. It’s true that you can’t go out today and instantly create a long history of safe driving, but it is still something to work toward as a driver, and having financial incentive to do so makes it all the more appealing.

Many companies help safe driving a more attractive goal to reach toward by offering direct incentives on their policies. Met Life Auto & Home, for example, provides its drivers with safe driver credits that help them rack up rewards for avoiding tickets, accidents and claims.

There are also plenty of companies featuring discounts for defensive driving courses. In some cases taking a course like this and completing it successfully can even wipe a previous accident off your insurance record, helping you instantly save on your auto insurance.

First Accident Forgiveness

Of course, there’s no question that regardless of how safely we try to operate our automobiles, the risk will always be there for an accident to occur. That’s why some companies have devised a method called accident forgiveness (or first accident forgiveness) to extend an olive branch to those who have an at-fault claim on their record following a good run of safety over an extended stretch of time.

GEICO, for example, features first accident forgiveness for drivers who have completed five years of demonstrated safe driving as continuously insured loyal customers. In some ways the best chances to save depend on a combination of things, such as safety and loyalty.

Take Advantage of Discounts

These are just a few of the discounts that are available for drivers these days. Many companies offer a tremendous range of discounts. Allstate, for instance, offers over a dozen discounts for its policyholders. Take a look at all the ways you can save and be sure to claim all the savings you have coming when you purchase a policy, and save big today!

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