Bundle Your Policies

Sometimes in an effort to get only the lowest insurance policy premiums, people end up getting their different types of insurance from different providers – they have their auto insurance from company A, while their homeowners insurance is from company B, and their renters insurance is from Company C, and so on.

While they do end up saving a few bucks here and there, it is possible that they are actually missing out on an even bigger savings on their insurance premium, by having insurance coverage that is all over the place. The truth is that you can sometimes get lower rates on your policies by having them bundled under one provider.

If you talk to a representative of an insurance agency, you may be able to convince them to give you much lower rates or discounts in exchange for getting all of your insurance from their company. You would be surprised at how many insurance companies are willing to give you lower rates just to get all of your business.



There is also the added benefit of making it easier to organize and manage all of your policies, since you only need to deal with one insurance company.

Get the Annual Payment Plan



Most auto insurance premiums are paid in either monthly installments, six month terms, or annually. Most people choose to pay monthly installments since they find the monthly rates more manageable than the huge chunk of one time payment a yearly premium demands. However, you could actually pay less when you choose the annual installment, because companies want to encourage people to take the annual installment plans, and as such are willing to give discounted rates. Ask your insurance company representative if there is a discount if you go for an annual installment plan, and chances are he will give you one.





Settling debts yearly also allows you to better manage your finances – you don’t have to worry about the insurance every month. You’ll have a more flexible budget if you just save the premium every month, until the premium is due.. This is much less stressful than trying to come up with the money every month.

Increase Your Deductibles

Your insurance premium will be reduced, probably drastically, if you increase your deductible, which is the amount that you have to pay out-of-pocket when it comes to damages to your vehicle before you are entitled to a claim. Think of it this way, you are not likely going to get in an accident very often and you can easily pay for minor damages and repairs. You only really need the insurance for really large repairs, so why not shoulder the small ones in exchange for a reduced premium?

Limit Your Mileage

Try to avoid using the car when unnecessary. For really short trips or commutes, you can easily walk, carpool, or take public transportation. This will drastically reduce your car’s mileage. If you report your lower mileage to your insurance agent, you may be able to get your insurance premium reduced. Additionally, driving less also means you consume less gas and therefore save money on that end as well.



Factor in Teenage Drivers

If you have a young son or daughter who is going to start taking his or her driving lessons soon, you might want to shop around and look at different insurance companies’ premiums when a teenage driver is involved. This is because insurance companies consider teens to be more likely to get into a collision than adults, and will therefore ask for a higher premium if your car is going to be used by a teenager. This is a very important factor to consider because the difference in premiums when a teenage driver is considered could be somewhere between a hundred dollars to a thousand or more.

If you do have a teenage driver, make sure you take the time to teach them how to drive properly or to at least check if they have learned enough from driving class. It’s not just about saving money, you could even help steer them away from accidents.

Overall, do not be content with just paying whatever premium the insurance company throws at you. Make sure follow the tips above, and coordinate closely with your insurance agent, as he or she can tell you of more ways to save on your auto insurance.