Tips for Saving on Car Insurance

By Heather Steel on February 2nd, 2009

Although gas prices are back down to a more reasonable price, many drivers are still utlizing public transportation to avoid gas costs and the other costs associated with driving. Undoubtedly the biggest cost of driving comes from paying monthly car insurance, but this is an unavoidable reality for those of us who don’t live in cities with good public transportation. Luckily, there are a number of ways to get a lower rate on auto insurance. Here are the top five ways to save:

Car choice – when buying a car, opt for a safe and even boring car. While a minivan or sedan may not be as exciting to drive as a convertible or SUV, you will save a ton on car insurance as drivers of conservative cars are considered to be safer drivers. Color can also have an impact, with drivers paying more to insure a red car than a gray or black car, even in the same model. Cars with high safety ratings and safety features also tend to see lower car insurance rates.
Avoid accidents and traffic tickets – this may be a no-brainer, but you’d be amazed how much one fender bender or speeding ticket can elevate your insurance cost.
Monitor your credit score – many people do not realize that insurance companies look at your credit score, but they do have the right to. If you have thousands of dollars in credit card debt racked up, you may also see a higher car insurance rate.
Take a class – most of us view defensive driving classes as nothing more than punishment for tickets, but taking these classes voluntarily can reduce your insurance rate. If the idea of sitting through a day of class is your personal idea of torture, try a comedy defensive driving class or an online class, both of which tend to be more tolerable.
ALWAYS shop around – constantly be on the lookout for cheaper rates. Most insurance companies offer online quotes for free. If you see a rate lower than what you are currently paying, your current provider might very well match it to retain your business – and if not, you can switch to the company with the lower rate and possibly get an incentive for switching!