Keep your policy active: Cancellations and lapses really add up. Many car and homeowners insurance companies charge cancellation/reinstatement fees. If you do incur a lapse or cancellation, car insurance companies will take away the prior insurance discount which can be up to a 20% off discount. Once that discount is lost, it will take 6 months of continuous insurance with no cancellations or lapses in order to get that discount back.
Try and keep a clean driving record: Although it is easier said than done if you can resist getting moving violations or accidents it will save you lots of money in the long run. Remember if you do get stuck with a moving violation or accident they will stay on your record, thus you paying a higher insurance premium for three years.
Make EFT Payments: Many car insurance companies are now charging up to $5.00 or more for mail payments, but sometimes nothing if you choose to have payments automatically deducted. And, sometimes the deductions can come from your credit card, so you don’t have to worry if the money will be in your bank account when payment time comes.
Stick with Yearly Policies: Choosing a yearly policy can extend your savings on your car insurance. Purchasing a yearly policy instead of a six month policy gives you a rate that cannot be changed for one year vs. changing every six months.
Defensive Driving Course: Some companies give considerable discounts on car insurance for attending defensive driving courses. Check with your state insurance commissioner, insurance company or when obtaining an online insurance quote to see if you could qualify and to find out where to take courses.
Combine Auto and Home or Renter’s Policies: Most insurance companies give a discount if you carry your auto and home or renter’s policy with the same company. This discount can be anywhere from 5%-20%!
Watch Your Credit Rating: Another great tip to get cheap car insurance – keep your credit clean! Yes, a lot of insurance companies are checking your credit and basing your policy on what is found. Make sure you check to see if your credit is in good shape, and if it is not, you may want to seek out companies who do not do credit checks.
Train Teenage Drivers: Drivers Education can not only give a reasonable discount on your car insurance, as well as good grades. You can report them to your car insurance company every semester.
Ask for a Multiple Car Discount: Did you know sometimes insuring two cars can be the same price as insuring one? If not the same price, insuring another car usually does not cost as much as you may think. If you have two cars, it is very wise to check with your insurance agent, or while obtaining your online insurance quote, to make sure you can get this discount on your car insurance. Also, if you are planning to sell a second car, the cheap car insurance trick would be to keep that car on just liability to get your multiple car discount. Sometimes people are surprised when they call their car insurance company to take a car off of their insurance, only to find that their price did not go down but possibly increased!