15 Do’s and Don’ts For Saving on Car Insurance

If your monthly payments rise and fall more often than the Dow Jones industrial average, it may be time to revisit some of these common car insurance do’s and don’ts:

1. Don’t get a ticket – A speeding ticket can increase your car insurance rates as much as 15%, and if you’re ticketed for reckless driving or driving under the influence, you can probably expect to see your rates spike by at least 20%. First-time offenders may get off easy with just a warning, but the smartest practice is simply to drive safely and avoid seeing those blue lights in your rear-view altogether.
2. Don’t drive a flashy car – Insurance companies much prefer safety over showy, and a brand new sports car, regardless of its color, will obviously cost more to insure than a used minivan. The less likely you are to go for a spin at whirlwind speeds on the freeway, the lower your car insurance rates are likely to be.
3. Do wear your seatbelt – If you’re caught driving without a seatbelt in some states, you could face monstrous fines and see your car insurance rates go up as much as 3%.
4. Don’t get into an accident – Easier said than done, we know. But it’s important to remember, according to the Insurance Services Office, many providers follow a standard practice of increasing a policyholder’s rates by 20-40% of his or her base rate after an accident (although first-time offenders may get a warning).
5. Do report accidents – Even if you just get into one small fender-bender, failing to report an accident to your auto insurance company could result in the cancellation of your policy.
6. Do take a defensive driving course – Some car insurance companies will cut your rates by 10% if you can prove you’ve taken and passed an accredited defensive driving course. Plus, it’s an excellent way to help you avoid accidents and other claims down the road.
7. Do install anti-theft and safety features – According to the FBI, a car is stolen in the U.S. every 42 seconds. Rather than falling victim to this statistic, install a car alarm to help prevent theft and lower your rates. Airbags and automatic seatbelts also could help you save.
8. Don’t take regular cross-country road trips – In addition to depreciating your car’s value, a high mileage number could cause your car insurance rates to spike. The less time you spend on the road, the less likely you could be involved in an accident and the lower your rates are likely to be.
9. Do keep up a favorable credit score – Your credit score is closely tied to your insurance score, which is a big factor in determining your rates. Pay off those overdue bills and build up your credit score to help keep your insurance rates under control.
10. Do get married – While single life has its perks, many car insurance companies offer lower rates for married couples. (Although this probably shouldn’t be your only reason to say “I do.”)
11. Don’t fail algebra – Teenage drivers can qualify for “Good Student Discounts” by bringing home A’s and B’s on their report cards.
12. Don’t take the first deal you find – Smart shoppers know the best way to get a great deal on car insurance is to compare multiple quotes from different companies and explore your options when it comes to coverage and rates.
13. Don’t get complacent – Update your policy every once and a while to make sure you’re not overpaying for coverage you don’t need. If you’re paying new-car rates on a 10-year-old car – ask your agent to do that math again. Consider whether you need to have collision and comprehensive coverage.
14. Do bundle your policies – Purchase your auto insurance and your home insurance policy from the same provider, and you could qualify for savings of up to 20%. Many companies also offer multi-car discounts for customers who trust one provider to cover every car in the family.
15. Do call an agent – You might never know which big discounts you’re missing or which features of your policy are out-of-date unless you go over the details with a licensed expert.

Source: AutoInsurance