As many people already know, owning a car can get expensive. In addition to monthly payments (EMIs), gasoline, maintenance costs, and insurance payments can all make a huge dent in your bank account. That is why saving money on your car insurance is of the utmost importance. Finding the right insurance policy, at the lowest price, can be time-consuming and frustrating, and the process often includes comparing multiple quotes. Having car insurance is a must, but there are some ways you can lower your costs.

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Car Insurance on a Budget – Fast, Efficient Ways to Save Money

Raise Your Deductible
Higher deductibles translate to lower payments for you. This may be a viable option for many people, especially if you drive safely and properly maintain your vehicle. The deductible is the amount of money you must pay for damages before your insurance takes effect. Raising your deductible on an older vehicle, or a vehicle that is only driven a few miles a year, can help you save a considerable amount of money. If you don’t mind paying more after a collision, raising the deductible can drastically reduce your insurance costs.

Combine Policies
Combining insurance policies is one of the most popular ways to lower your insurance costs. If you already have multiple policies from the same company, combining them can entitle you a significant discount. Many companies allow you to “bundle” policies such as life, home, car, and renter’s insurance in order to attract business. You can use this to your advantage when it comes to reducing your premium.

Pay the Full Price
Most auto insurance companies allow give you the choice of breaking your yearly premium into monthly or biannual installments. The prospect of having to pay a large sum of money up-front may not be appealing, but it can save you more in the long-run. By paying your insurance bill all at once, you will more than likely be eligible for a sizeable discount. This option may seem somewhat pricey at first, but remember, it does pay off in the future.

Maintain Your Credit
Your insurance quote, like most things these days, is heavily influenced by your credit score. Drivers with lower scores are subject to higher prices and fewer discounts. If you pay your bills on time, and spend responsibly, you will seem like less of a credit risk to car insurance companies. This is one of the most surefire ways to save on car insurance.

Drive Safely
Insurance companies also factor in your driving record when calculating your rates. Drivers that have a history of collisions, whether they are at fault or not, will have to pay more. If you have been convicted of a vehicle-related crime, such as DUI, or reckless driving, you will also be subject to increased costs.

Talk to Your Agent or Company
Remember my post on diamonds, fish and wealth? Always get expert advice. While each of the methods above can save you money on car insurance, but there is no substitute for speaking directly to an expert. Your agent may also be able to inform you about additional, unadvertised discounts. By remembering these tips, and working closely with your insurance company, you will undoubtedly keep your expenses to a minimum.