Are You Paying Too Much for Auto Insurance?

Have you had the same car insurance policy for years? Have you simply assumed that you're getting the lowest rate you can? If so, it may be time to review auto insurance rates and see if you're eligible for further savings. Changes in your current vehicle and driving record, as well as competition in the insurance industry, can affect the amount you're paying every month.

Compare Auto Insurance Quotes

It's a myth that insurance rates are set by the government; in fact, rates for the exact same coverage vary dramatically between insurers. Getting quotes from at least three companies can help you ensure you're getting the best deal possible.

While price is important, check out prospective insurer's reputations before committing to a purchase by:

• Asking local body shops which car insurance companies have the smoothest claims process.
• Contacting your state's insurance department or visiting their website to learn more about the company.

Take Advantage of Discounts

Most insurers offer a variety of discounts that may lower your auto insurance premiums if you qualify. Here are just a few ways you may be able to save:

• Auto clubs and professional organizations: If you belong to AAA or certain professional organizations, you may qualify for lower rates.
• Combined coverage discounts: If you insure your cars and your home with the same company, you'll often get a premium reduction.
• Occupational discounts: Certain occupations are considered "low risk" for car accidents, so what you do for a living may lower your rates. Low risk occupations may include actors, artists, engineers and scientists.
• Safety feature discounts: Depending on where you live, you may be able to get discounted rates for driving a car with anti-lock brakes, airbags or automatic seatbelts.

Additionally, many insurers offer discounts to senior citizens.

Other Ways To Lower Your Auto Insurance Quotes

One simple way to lower your car insurance rates is to raise your deductible. If you are willing to pay out a bit more in the event of a claim, you'll save money on your payments all year. Some other ways you may be able to lower your auto insurance premiums include:

• Choosing a low-risk vehicle: Owning certain high-performance cars mean higher insurance rates. Consider choosing a less expensive car to insure for your next vehicle.
• Dropping comprehensive coverage on very old cars: If your vehicle is worth less than $2,000, you may want to consider dropping theft or collision coverage.
• Improving your credit score: Insurers have found people who manage their finances well are a lower claim risk, and often offer better rates to people with high credit scores.