Getting the Most from Your Auto Insurance Money Saving Tips

Finding the right insurance for your car is important, but it does not have to be costly. In fact, drivers can save hundreds of dollars --- if they try these eight money saving tips* before calling an auto insurance company about coverage.

Spending 6 hours and less than fifty-dollars for a course to improve driving skills could save drivers 10% off their auto insurance for three full years. Authorized Motor Vehicle Accident Prevention Courses are available through local affiliates of several organizations, including the National Safety Council.

When buying a car, think carefully about the type of anti-theft device to install. They are not all alike. The most common ones that merely sound an alarm but do nothing to prevent the car from being started can result in a 5% discount off Theft coverage. Installing a passive alarm that disables the ignition earns 10% off. Install a "homing device," like Lo-Jack, and it’s 15% off --- and when they are installed in combination with each other, the savings can add up even more.

Many local police departments offer a program to etch the vehicle identification number into the car windshield that can result in a 5% saving off the car’s Theft coverage.

The amount of insurance coverage is important, but to save some money, drivers may want to consider increasing the deductible (the amount you pay in the event of an accident). Going from a $100 to a $500 deductible on the Collision and Comprehensive (non-collision) Coverage can result in as much as 45% off the annual Collision premium and 33% off the Comprehensive premium.

It is common sense that safe driving is good for you, but it is also good for your wallet. Maintaining a "clean" driving record (39 months without a violation and 5 years and 3 months without an accident) can result in a 15 % discount off the Liability and Collision premium.

One of your most important decisions is determining the amount of Liability coverage to take. Although most states have minimum requirements for passenger vehicles, they may not be sufficient for your needs. Drivers need to assess their financial situation and determine their "exposure" in the event of an accident. Additional liability coverage could save thousands if you are involved in a costly accident and subject to a lawsuit.

Auto insurance is increasingly competitive and companies have very different rates, discounts and eligibility requirements. Nowadays, there can be as much as a 50% difference between companies. So, shop around.

Be sure to ask the insurance company about their specific discounts. Are you getting all the discounts to which you are entitled? And, be sure to have your current policy declaration page in front of you so you can compare "apples to apples" when checking out the coverage and rates offered by the competition.

* Discounts cited may not be available from other auto insurance companies. Discounts vary depending upon insurance regulations in your state.