Save On Car InsuranceCar insurance is unavoidable especially in some states that require citizens to buy at least minimum coverage for their vehicles. One of the reasons why the law mandates that people have car insurance is to ensure that the car-owner will be able to take responsibility should he cause damage to another individual or vehicle.

Car insurance can be expensive and it can slowly drain your resources away especially if you are unwise. It is a good thing that there are ways on how to save money on car insurance.

Here are 4 of the best ways to save on car insurance:

1. Compare Rates
Rate comparison allows you to find the best available rate in the market. If your current policy is about to expire, better start getting quotes from other insurance companies – you can save up to $500 a year by going with a different insurance company.

You can get quotes from various companies from the internet however if you could, contact the insurance company directly. Contacting insurers directly can also save you money as you eliminate brokers and other third party. Before buying car insurance from a company, make sure that the insurer has a good reputation. It is better to go with a well-reviewed company that offers slightly higher premiums than with an ill-known company if you’re going to end up struggling with them every time you need something.

2. Follow Up With Your Credit Rating
Your rates are determined by insurance companies according to your credit rating. According to statistics, those with higher credit ratings also file fewer car insurance claims. People who have paid their credit accounts regularly are considered by insurers as low risk.

Check your credit report and make sure that there are no mistakes. If there are, correct them before you shop for new car insurance. Cleaning up your credit report can greatly influence your car insurance rate. If after cleaning up your credit report the insurer you are dealing with still offers a rate you don’t like, check with other companies.

3. Combine Policies
There are companies that can offer you a discount of 10-20% if you agree to combine your car insurance with a homeowner’s policy from the same insurer. If you’re lucky, the insurance company will even offer the discount on both policies. You can also combine your car insurance with your health insurance. If you are young and healthy, you are less likely to need extended treatment if you get involved in a minor accident. You can keep your rates down as long as you stay healthy.

When thinking about combining policies to save on car insurance, be sure that the second policy is something you need. Combining policies is not practical if your health insurance is entirely paid for or if your job has a great deal on homeowner’s insurance. Don’t attempt to save a few dollars if you are going to end up in a worse financial situation!

4. Look for Discounts
Availing of discounts offered by insurance companies is the most common way to save money on car insurance. Discounts are not always automatically applied and insurers only try to apply them when appropriate however they often don’t have enough information to know that you qualify for a discount.

Take the initiative to know about an insurer’s available discounts and see if you qualify for any of them. Don’t entirely rely on the insurance company to monitor things for you because they also deal with so many people that it’s so easy for your discounts to get lost in all the shuffle.

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