When you're trying to find cheap auto insurance it's a no-brainer that step one is sitting down at your computer and going online to do price comparison. Most insurance industry experts would tell you that the majority of American consumers pay more for insurance then they have to, partly because they aren't savvy shoppers. Getting multiple quotes and looking at the differences between them is an important part of the money-saving process. The quasi-anonymity of the Internet also reduces some of the pressure on buyers. Without an agent sitting across the desk making a hard sell, insurance shoppers are able to educate themselves and review information at their leisure.
What to Look For
While there are many discounts available to consumers with good credit, there are other credits that anyone can receive. Some of the ways you can knock down that premium are:
EFT - Agree to electronic payments, and you'll usually save a percent or two. Agree to electronic statements as well, and you could see your premium reduced by a total of five percent.
Defensive Driving - If you're not doing it to "erase" a ticket, you can take a defensive driving class at any point during your life, and doing so will generally net you a discount of up to three percent for three years, at which point you can repeat the course.
Bundling - Placing your auto and home insurance policies with the same insurance company is a tried-and-true method of saving money on your insurance.
What about that Deductible?
While it's true that raising your deductible will help reduce your annual premium, you should do the math before you commit to the possibility of paying more out of pocket. If an increase in deductible from $500 to $1,000 only nets you a savings of $100/year it may not be worth it, while a savings of $250-$300/year is. Take a good look at your finances, and talk it over with your agent before you commit.
Keep in Touch
If you've had your insurance with the same company for a long time, and don't want to switch, you can still reduce your insurance cost by staying in touch with your insurance agent. Various life changes can mean changes to your premium. Some examples include:
All of these are things that may occur in your life, but if you don't inform your insurer, they can't adjust your premium to reflect the changes.
From these examples, then, it should be obvious that if you want to find cheap insurance rates, you have to compare quotes, ask for discounts, examine your own finances, and keep in touch with your insurer - four simple things you can do to save money on insurance.