Pay Less for Auto Insurance

While in debt, you should always look at ways to lessen your expenses, even in little ways. One expense that most likely cannot be cut from your budget is auto insurance. Most states require it in order to operate a motor vehicle.

However, just because you must carry it doesn’t mean you cannot work to get a better price. The federal government offers the following steps that you can take to reduce the cost to your auto insurance.

•    Shop and compare – Get price quotes from at least three companies from agents or over the phone or Internet. Ask questions. Make sure the company is in stable financial condition.  Check for complaints with the state insurance department.
•    Compare insurance costs before purchase –Some cars have better insurance rates due to excellent safety records.
•    Higher deductible – By leaving yourself exposed to a higher dollar figure in the event of a crash, this step can be risky. But taking a higher deductible can reduce your insurance policy cost by significant dollars.
•    Reduce old-car coverage – you could drop the amount of things covered by your insurance on older cars, if the value of the car is so small that you know your car would not be worth the cost of repairs.
•    Bundling – See if your insurer will reduce your cost if you take several different policies from that same company.
•    Low mileage discounts – Offered by some insurers to customers who do not drive that much. No, that doesn't sound like us, either. 
•    Group insurance – Yes, if you can convince your employer or your garden club to go in with you, this is possible.
•    Other discounts – Long-term accident avoidance, defensive driving discount, taking a college student off the insurance, etc.