Three Main Ways to Save on Insurance

What You Drive Matters

Don't drive a sporty vehicle that can go from zero to 50 in two seconds. Cars that look and act like race cars are in more accidents than others and will cost you more in insurance even if you are a very safe driver. Don't drive an expensive vehicle either, with all the doodads and gadgets you can get. These are prime targets for thieves and carry a higher insurance cost because of it. Besides that, they're more expensive to repair if you get into an accident.

Take All the Discounts You Can

Make sure you get all the discounts you're entitled to. Ask your agent if you're not sure, but read your insurance policy first to see if you already have some discounts. You could be eligible for discounts for being a good student, having certain safety equipment, being in the military, keeping a low annual mileage or having multiple vehicles insured or other multiple policies with the same insurance companies. There are other discounts your insurance may offer and your agent will know about them, but may not offer them unless you ask.

The Impact of a Stable Lifestyle

Someone who changes jobs every year, moves often, has traffic tickets, is in accidents even though they're minor, gets deeply in debt early or even takes out bankruptcy, is not a good candidate for low automobile insurance. It's easy to see why, when all the factors are put together. An unstable lifestyle speaks of a person who is not settled or responsible in mamy areas of life and insurance companies consider that this will spill over into the person's driving style and attitude.

If this is you, you can't change your record overnight, but you can begin working right now to stabilize your lifestyle. Keep that job another year, don't move unless you really have to and keep up on all your bills. Better, get out of debt. Drive carefully and take a defensive drivers's course, both for the discount and to help you be a better driver.

More Than Insurance Savings

All of these things together guarantees that you will have lower car insurance premiums with the same or better protection than you have now. Many of these things will cost you less in other ways, too. Driving less means less gas and wear on your tires. Moving less often saves you money on the move itself (even if you move yourself) and on deposits. Driving a less showy car means that you pay less for it to begin with. Doesn't that make dollars and sense?

Frugal ways to cut your auto insurance

When we think about frugal ideas, we often focus on things like reusing plastic bags and not throwing out leftovers. They do save money, but things like auto insurance premiums can often stand a little adjustment that will save you quite a bit more.

How? Go through your auto insurance with a fine toothed comb. Check each item that you're charged for. Is it necessary? Are you paying more than your state requires? Are you paying twice for the same coverage: Hospitalization on your car insurance and hospitalization on your health insurance, for instance, just isn't frugal.

If you've recently paid off your vehicle, make sure full coverage is dropped unless there's a real reason for it. Most people don't need it unless their lending institution requires it.

Make sure you're getting all the discounts you're eligible for. If your agent doesn't offer them, ask. Some discounts to ask about:

Clean driving record
Multiple vehicle
Good student
Low mileage
Driver education
Safety equipment
Armed services
Multi-policy

Other than that... it never hurts to look around. Check some online sites that allow you to compare different automobile insurance companies and never let loyalty to your old company stand in the way of saving money.

I was surprised when I checked mine out recently. I thought I had the most frugal insurance possible, but I found another one that saved me around $30 a year. Why not? Now I can do something else with that money.