Tip 20: Shop Around for Insurance

Shop around for insurance. If you're getting good service from your company and are happy with the rates, you may want to stay with them, especially if you have had accidents or tickets. But if your record is good, shop around to see how much you can save, then decide if the savings are worth the switch. 

Potential Money Savings:  $50-200/yr.

Tip 16: Avoid Tickets

Avoid tickets for speeding or moving violations. Many insurance companies give a discount of up to 20% if you have not had an accident or ticket for three years or more.

Potential Money Savings: $100/yr or more.

Tip 14: Student Discounts

If you have a high school or college student under 25-years old in your household, ask about the good student discount for auto insurance. If your student qualifies, you could save 25%.   

Potential Money Savings:  $125/yr.

Tip 9: Qualifying for Insurance Discounts

Make sure you notify your insurance company of all the safety features that qualify you for discounts on auto or homeowner's insurance, such as automatic seat belts or air bags in your car, smoke detectors in your home, etc. Non-smokers or non-drinkers can often get additional discounts. 

Potential Money Savings:  $50-100/yr.

Tip 6: Insurance Advice for Older Cars

If you drive an older car, consider dropping collision and comprehensive coverage (don't drop liability coverage). Collision coverage is required if you have a car loan, but for older cars that you own, weigh the car's book value (what the insurance company would pay you if the car was totaled) against your collision premiums. If your car is over five years old or is worth less than $1000, keeping collision and comprehensive coverage may not be worth what you're paying in insurance premiums.   

Potential Money Savings:  $100-300/yr.

Tip 3: Smart Insurance Planning

Ask your insurance agent how much money you can save by raising the deductible on your auto collision insurance. Often, raising the deductible from $200 to $500 can save you 10% to 30%. If you have a good driving record, you could come out ahead.  

Potential Money Savings:  $50-225/yr.