You Should Never Pay More for Auto Insurance Than You Have To

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You already know you’ll pay less for your auto insurance coverage if you are a good driver. If you pose less liability risk to the company that insures you, it will reward you with lower premiums. One mistake many drivers make, however, is failing to look into additional ways to save on their auto insurance coverage. Are you one of those drivers? Don’t be. This comprehensive guide will offer savings tips on your vehicle coverage as long as you find a carrier that offers these programs.

Age Matters…

Insurance carriers look at age when they write an automobile policy. The younger you are, the less experienced a driver you are and the more prone you are to get into an accident or be the unfortunate recipient of a moving violation. If you are 25 years old or younger, plan on paying more for your auto insurance premiums, but don’t throw your arms up in the air and yell, “I’m a good driver! It’s not fair!” just yet. You might have another way to realize savings.

According to, many insurance companies will reward you for doing well in school. If you are a high school or college student who hits the books full time, you may earn premium savings by keeping your grades up. Look for a company that offers a good student discount. The company will offer you savings if you keep your grade point average to a minimum it designates, so hit the books and save money on your automobile coverage.

… Even if You’re Older

If you graduated college decades ago and are finally reaching your Golden Years, happy retirement to you! If you are throwing your arms up in the air and yelling, “I’m a good driver! I always have been!” you needn’t be penalized for your age, either. Today’s insurance carrier is finally getting it right: Older drivers are more experienced and less likely to have issues on the road. You, too, can secure premium savings if you go back to school and take a defensive driving course.

Group Discounts

Just like the good driving discount, group or bundle discounts also make sense. Many people forget that insurance companies are just like any other company, and for some reason, they don’t consider that an insurance company must make a profit to keep its doors open. One way to do this is to offer many different types of coverage, such as automobile, home, life, and even health insurance at times.

When you approach an insurance company and ask it to meet all of your coverage needs, it jumps for joy, because it’s just secured more than just your automobile business. This looks good on an insurance company’s bottom line, and it must have a bottom line in the black. As such, many carriers will offer significant discounts on all of your insurance premiums if you bundle your coverage and cover everything.

This Includes Other Drivers

If you’re perfectly happy with your home insurance carrier and aren’t looking to switch, you still might secure some savings with a bundle package. Many insurance companies offer group policy discounts, which mean every driver on the house is insured through the same company on the same policy. This is another way to group things together to get a better premium rate, regardless of whether you pay for your coverage monthly, quarterly, or annually.

Speaking of Annually…

If you pay your annual premium all at once, you will shave off even more dough. One thing insurance companies do not like is cancelation, unless they’re the ones doing the canceling. In fact, even if you make monthly payments on your coverage, many will you bill you the balance if you cancel prematurely. Instead of dealing with this and the expense of a monthly payment, realize significant savings by paying for your yearly coverage all at once. Many carriers offer huge discounts for this.

Finally, electronic payments are the name of the game with most any bill anymore. Your utility companies, cable companies, and car and home lenders encourage you to pay your bills online. So do most insurance carriers. Many will give you a discounted premium if you sign up for electronic payments and you may realize even more savings if you use PayPal to make them. Don’t be one of those drivers. Don’t pay more than you have to for your auto insurance.