Pointers to help you save on car insurance

With ever skyrocketing gas prices, we all want to find ways to drive more cheaply. The bad news: unless you have your own crude oil well, there’s not really a lot of wiggle room in your fuel budget. The good news: it is relatively easy to reduce your car insurance premiums. Here are some tips that will let you save on your car insurance. Ready? Go!

If you have your own policy, you already know that having a good driving record with no violations or prior insurance claims is an asset. However, more and more insurance companies are offering discounts for good drivers by tracking their driving habits. This is done with an “intelligent” device connected directly to the diagnostics port of your car. The device collects information on acceleration, hours of use, annual mileage and sudden stops.

A simple way to save on your car insurance is to increase the deductible, or the portion of damage costs that you’ll have to cover in the event of an accident or other claim. Generally, the higher the amount or percentage of your deductible, the more the premium is reduced. Of course, you need to be sure that you can cover such an amount if anything happens.

As your car gets older, you may want to take out insurance that only covers damage caused to others in an accident for which you are responsible. This kind of policy doesn’t cover damage to your own car. You can also waive your rights to some specific kinds of protection.

Most insurers offer discounts when you bundle your auto and home or tenant’s insurance. You could also get good discounts when you insure other people in your family, such as spouse or children, or other vehicles, such as a motorcycle or RV.

If you’re willing to sign a contract for two years’ coverage instead of just one, your insurer might offer you a discount.

Insurance companies may ask you if your car is equipped with an anti-theft immobilizer. If you have one, it could reduce your premium. Keep in mind that the type of car you own can have an impact on your premium, especially if it’s a desirable model for professional car thieves.

The best way to save on your car insurance is to shop around. When insurance renewal time is approaching, get estimates from a few different insurance companies. In time, this small investment could lead to big dividends when you get to spend the money you save on fuel.