20 Simple Tips to Save Money on Car Insurance

For many people, their vehicle is one of their most significant monthly expenses after rent or mortgage payments and groceries. We've already written up some tips to save money on groceries, and these ways to cut spending on gas help reduce the costs of using your car, van, SUV, or truck. But along with gas, auto insurance is another big part of the monthly cost of a vehicle, so now we'd like to cover some tips to save money on car insurance.

While it may seem like car insurance is a fixed cost you have no control over, that's not actually the case. Lots of drivers just don't go through the trouble to comparison shop for coverage, find out exactly what they're paying for, or ask about possible discounts.

But if you do these things, there's a good chance you can reduce your monthly premium by 20, 30-maybe even 40 percent. That's can take a little pressure off the monthly budget, and the savings definitely add up over the course of a year.

So, take a look at these tips to save money on car insurance and save!

How to Reduce Car Insurance Costs

1. Shop around for coverage by requesting quotes from all the carriers in your area. This is quick and easy to do online on carrier websites or the many free quote comparison websites.
2. Give your VIN when requesting quotes to increase the likelihood of getting discounts for things like anti-theft and safety features.
3. Show competitive quotes to carriers you're interested in to see if they'll match or beat them.
4. Raise your deductible in exchange for a lower monthly premium.
5. Ask a representative from your insurance company about the discounts they offer and whether you're eligible for any.
6. Eliminate optional coverages.
7. Buy only the minimum coverage limits required by law in your state.
8. Carpool, walk or bike, use public transportation, and otherwise keep your mileage down to qualify for a low-mileage discount if your carrier offers one.
9. Drive responsibly to keep a clean driving record, as this helps you get a lower premium and often qualifies you for safe driver discounts after a certain number of years.
10. Never let your coverage lapse, as this results in a spike in your premium.
11. Look into bundling your auto coverage with renters or homeowners insurance. This often comes with a discount.
12. Buy a new policy 10 days or more ahead of when you need it activated, which typically reduces the cost a little.
13. If possible, pay upfront for a term of coverage rather than in monthly installments. This, too often, earns some notable savings on the total cost.
14. Go "paperless" by getting and paying bills online if your insurer offers a discount. But even if they don't, do it anyway, since it's more environmentally friendly!
15. Sign up for automatic payments if that gets you a discount.
16. Compare insurance quotes before buying a new car for the vehicles you're considering. The type, model year, cost, and safety features affect rates, so this helps you make a financially smarter choice.
17. Do some quick comparison shopping every six months or so, just to see if there are any better offers out there.
18. Shop for a new policy any time you move out of your zip code, as the location is a factor in your premium. Just do a little research first to make sure you're not setting yourself up for an increase.
19. Check-in with a representative from your insurer if you graduate college, as this often qualifies you for a discount. Also, shop around after graduating to see if you get a better deal from another carrier.
20. Work on maintaining good credit or improving poor credit, as this is a factor in car insurance premiums in most states.