– Deductibles. Changing the deductibles on your insurance can have a drastic influence on your insurance rate. You should make your deductible for collision coverage as high as you feel comfortable with. By having it as high as $1000, can make a big difference on your insurance. On the other hand, you probably want a low deductible on comprehensive coverage, since you do not want to be stuck with a big bill if someone hits your car in a parking lot and runs off. Take the value of your car in consideration. If your car is worth less than say $3000, you can probably drop collision coverage completely and save enough money in a couple of years to replace your vehicle.
– Sports and four-wheel drive cars carry a significantly higher premium than other cars, especially if you are under 25 years old. Make sure you can afford the insurance before buying such a vehicle.
– An anti-theft device carries a lot of weight with insurance companies. If your car does not have one, it might be worthwhile to have one installed. You could have one installed for as little as $100.
– Avoid unnecessary and frivolous claims. It might sound like common sense, but a lot of people abuse their insurance with petty claims. Consider how much your deductible is and how much the repairs will cost. If may be worth your while to pay out of pocket, since many companies reward drivers for being claim free.
– Exaggerating the value of your car does not impress anybody and will cause a higher insurance rate. Only insure it for the amount you need for replacement and update this amount annually.
– If you can, pay your premiums annually instead of monthly or quarterly. Insurance companies often add a service, or interest fee if you choose to pay monthly.