5 Tips To Minimize Your Car Insurance Costs

1. Sign up for a defensive driving course.

If you’re like most people, the last time you took a driving course was when you went to get your license. But if you are willing to invest a bit of cash and time into taking a defensive driving course now, you could lower your car insurance payment.

Taking a defensive driving course shows the insurer that you are a responsible and safe driver. This typically results in lower car insurance costs. Before signing up for a defensive driving course, be sure to talk to your agent. Ask if taking the course will lower your premium and if your insurer recognizes it.

If so, then go for it. Those few hours you spend learning about defensive driving could keep more cash in your pocket and make you a safer driver simultaneously so you can avoid costly accidents in the future.

As for how much you can save by taking a defensive driving course, some estimate a 10 percent savings.

2. Pay less as you age.

Some car insurance companies offer discounts for older drivers with clean driving records. Geico, for example, has a discount for safe drivers over 50. You can shop around for similar discounts or ask your agent if your current insurer has such an offer.

3. Put kids on the parents’ policy.

While older drivers can sometimes get discounts for their age, the opposite is true for younger drivers, who are seen as risky and inexperienced behind the wheel. If you have a teenager getting ready to drive, try putting them on your policy instead of their own. Statistics show this can result in 62 percent savings since parents are assuming the risk.

4. Be a safe driver.

Accidents and tickets will drive up your car insurance rates like nothing else, as they show a propensity for future accidents. Keep this in mind when driving as the safer driver you are, the lower your car insurance costs can be.

Of course, we cannot all be perfect, and there are times when we will have a fender bender or get a ticket. If you get a ticket and have been a primarily safe driver up to this point, see if you can go to traffic school to erase that hiccup. It can keep your record clean and your car insurance premium low.

5. Don’t stick with one company.

Believe it or not, car insurance companies do not reward you for loyalty with lower premiums. By shopping around each year or two, you can see if you are truly getting the best deal and whether you should switch to a new insurer. And if you do make the switch, you should see savings as most other drivers do.

If you like the convenience of staying with a single car insurance company, you can skip the yearly comparison shopping. However, it’s in your best interest to start shopping around if you know that next year’s premium will be higher.