Everyone can benefit from saving a few bucks whenever possible. And, while car insurance is necessary—both to meet state requirements and for your own financial security—it would be helpful to pay less for it. Your auto insurance premium is calculated using a variety of factors, but, luckily, there are things you can do to reduce your rate. Try the following six tips for saving: 
- Multi-line policy: Bundling your policies with a single insurance company can result in savings on each one. Insurances companies are businesses after all and, as such, it’s in their best interests to incentivize your increased business.
- Fewer payments: Each time you make a payment to your insurance company, processing fees are tacked on to cover administrative costs. Though these fees are usually only a few dollars, they can add up to cost hundreds over the years. The solution? Make fewer payments. Instead of paying monthly, pay quarterly, biannually or even annually if you can. You may save money in the long run.
- Drive safe: The less risky a driver you are, the less you’ll generally pay for insurance. Accidents and tickets can increase your rates and mar your record. Safe drivers not only have lower calculated premiums, they can also be eligible for further discounts.
- Ask about discounts: Just like good drivers can save, so too can good students, seniors, loyal customers, military personnel, teachers and more. Ask your agent if you qualify for a discount and start saving today.
- Shop smart: Different models of cars will have different insurance rates based on their overall safety. Sports cars and luxury cars tend to be the most expensive models to insure, while sedans and compact SUVs typically cost less to insure. When car shopping, ask your agent for a quote on several models of your choice to help you determine which cars are within your monthly budget.
- Don’t over-insure: If you drive an older car, the cost of collision and/or comprehensive coverage could be more than what the car’s worth. In such cases, it may be beneficial to reduce your coverage to help ensure you aren’t paying for something you don’t need. You can even pocket the extra money you save to put toward a new car.