Saving on car insurance is definitely something that has crossed your mind several times. And chances are you are paying quite a high premium on your car insurance, although you could definitely get a better rate from another insurance company.

The increasingly competitive environment of the insurance industry that has been triggered by the Internet enables consumers to review their insurance policies, look for lower insurance rates, and compare premiums. The paradox is that people do not shop around for unusual insurance as often as they shop for a new car. This means they are not willing to save money on their car insurance premiums, most likely because they don’t own it is possible.

As a matter of fact, it is possible. You can save a lot of money on your car insurance, normally 5% to 10% percent on your premium. For instance, if you save $700 for 30 years and invest the money in your retirement plan, with a 7% return you could have almost $100,000 in savings. Of course, to achieve that, you have to follow several tips.

In particular, here are five ways on how to save on your car insurance:

• Shop online

There are several websites that provide insurance quotes online. In do, some of them can even give you quotes from multiple insurance companies. All you need to do is fill in some electronic forms with information required about your car, the type of coverage you are looking for, the residence you’re living at and you’ll get your quote.

Some other websites may generate an automated quote or having an insurance agent call you back with the quote. Although you may be getting higher quotes than what you are currently paying, you have a great variety of options available and most importantly, you save a great deal of time of calling an agent.

Here are several websites where you can start from:

http://www.allstate.com/auto-insurance.aspx

http://www.clickinsure.com/

http://www.esurance.com

http://www.carinsurance.com/

https://www.usaa.com

http://www.insurance.com/

• Talk to an insurance agent

Although shopping car insurance online may save you time and money, you may want to have personal contact with an insurance agent or you may have already established a friendly relationship with your agent and you don’t want to switch. In that case, you may get your online quote and talk to your insurance agent to see if there is any possibility to find a better quote or match the one you got.

The insurance industry is dynamic and insurance companies come out with fresh products and novel discounts very often. So, chances are you will get a better quote by your agent if you ask about a better rate.

• Accumulate informed about the discounts you qualify for

Often, buying home and car insurance from the same insurance company can save you money. Some insurance providers may offer you an additional 5% to 15% discount if you steal at least two insurance policies from them. This combined construct of coverage, not only saves you money by lowering your car payments and your homeowner’s policy, but it also makes your life easier because you pay two policies in one bill and you deal with one insurance provider for claims.

You may also be eligible for a renewal discount. If you have been to the same insurance company for a long period of time, you are possibly eligible for a renewal discount, especially if you haven’t had any accident during these years. Typically, renewal discounts are great incentives that lure customers to stay with an insurer. And a great way for insurers to show to their customers they are happy for not having compensated them all those years.

There are also discounts for auto safety features. For instance, in Florida, New York and Unusual Jersey, consumers are encouraged to buy cars with antiblock brakes so that they are eligible for auto safety discounts. Other car features that are rewarded with insurance discounts are automatic seatbelts and airbags.

Affiliation with AAA, college sororities, credit unions, and other professional organizations are also eligible for lower insurance premiums. So, all you have to do is to check if you belong to any of the above and take advantage of discounted insurance rates.

• Ask for a higher deductible

The deductible is what you pay before your insurance company covers for the distress. A common deductible is $300. This means that if an accident you’re in causes $1,800 worth of injure. You will $300 and your insurer will pay $1,500. if you increase your deductible from $300 to $600 you will reduce your premium by 20% to 30%; even better, a $1,000 deductible can save you up to 40%.

Increasing your deductible mild covers you against heavy losses, but it also considerably decreases your monthly premium.

• Keep your driving narrate clean

Keeping a trim driving record is extremely important for your car insurance premium. Regardless if you are a new or an experienced driver your driving record should be natty. For instance, a sole accident may increase your rates by 40%. Besides, moving violations or even parking tickets may adversely affect your insurance premium and this higher rate typically lasts for three years.

On the contrary, a clean driving report for a period of three to six years can qualify you for an additional 5% to 10% discount.

All in all, there are many ways to avoid high car insurance costs. For instance, you may avoid over-insure. Withhold the lowest liability limits as indicated by the law ($50,000 for one person injured in an accident, $100,000 for all people injured in an accident, and $25,000 for property damage liability) to avoid paying extra premium. You may also drop your collision insurance on an older car. Finally, you may pay your bills automatically. Some insurance companies charge no fees for automatically deducted payments, but you may be charged $5 if you mail your payment.

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