1.) Car Insurance is mandatory. It is the law to have a car insurance policy with at least the minimum amount of coverage
2.) Today it is just too expensive to have an accident without car insurance.
The best way to save money on your car insurance is to shop around.
Don't approach the first insurance company that you come across. Do some research on the rates different insurance companies offer by asking for car insurance quotes. You can approach an insurance company directly for a quote or get a quote online at an insurance web site.
Even if you have an existing car insurance policy, you can save money by changing to a better policy at the time of renewal of the insurance policy. There are several ways to save money on your insurance policy.
One way to get a discount on your car insurance is by increasing your deductible. In fact, you could save as much as 10% on your annual premium if you increase your deductible by 100%. However if you decide to choose a higher deductible, make sure you understand the risks involved with doing so. If you have an accident you will end up paying more out of your own pocket, so be sure that you have financial resources that will help you payout a higher deductible if you should ever need to.
It is important to remember that your credit report is influential in determining your car insurance premiums. This is a rather new determining factor insurance companies have started to use.
Many people don't understand the connection between their credit scores and their driving ability, but insurance companies tell us there is research which has proven a correlation between your credit history and the risk to a car insurance company. So if you maintain a habit of paying bills on time, while maintaining a good credit history, you should be able to get lowered car insurance rates.
It just may be better for you not to use your car to commute back and forth to work. Driving that's related to work usually brings on higher premiums than does pleasure driving.
This is another source of contention for some drivers. If you don't drive to work, what do you need the car for. At any rate, even if you keep your commute driving within a fixed mileage in a year, you will get to take advantage of a discount in the rate of your car insurance policy.
So if your insurance company offers this option, it may be worth it for you to drive a little less to be able to save a little more. You may decide it is more practical to car-pool or use some form of public transportation.
Driving safely gives you a price break on your insurance policy. If you maintain a clean driving record for several years, that means there are no accidents, no drunken or careless driving citations and no moving violations on your driving record you should be able to get a discount on your car insurance rates.
If your car is sporty, fast or expensive, your car insurance will cost more. These cars have parts and bodies that are more expensive to fix. People who buy a car that can go very fast, most likely want to drive that car at a high rate of speed.
Is the true for everyone who owns a sports car, no, but it is for most! These "hot" cars are also the targets of thievery. So if it's a discount on your car insurance don't buy a Vette or a Viper, check out a Toyota or a mini van.
By adding up lots of little tips and you can save a lot of money on car insurance. It takes a little time and foot work, but if you compare a few different insurance companies and the rates for their car policies you will see some savings. The more you look, the more ways to save money you will find.
Of course, if it has always been your dream to get a red convertible Corvette, you are not going to decide to give up this dream to save a couple hundred dollars a year. But there is still room for some give and take when you look over the different car policies and price quotes, you may be able to save yourself enough money for a couple of free tanks of gas!
