The next step to reducing the annual premium on auto insurance is to eliminate road side assistance. There would be an increased level of risk taken by eliminating this rider from the policy, however, the net result will be reducing the auto insurance premium. If this is still a desired way to go make sure of several things; don’t run out of gas, don’t lock your keys in the car and make sure that there is a spare tire in the car and know how to change it. Remember that towing due to an accident is automatically covered under most car insurances.

A final tip in reducing auto insurance premiums is to eliminate the car rental portion of the plan. It is easy to figure out that if an insured pays for this adder each year and does not require a rental, it would be less expensive for one to pay for one out of pocket when it is needed. If the time comes that a leased vehicle is needed do not pay for the zero deductible insurance. It is a waste of money since the basic plan already covers the car rental.

One of the easiest ways of reducing the premium on your auto insurance is to go paperless. Many insurance companies offer discounts to customers who take the option of foregoing a monthly paper bill. This is as easy as going to the company’s website and registering your information such as email address and/or bank account information. You will then receive an email notice that the premium is due. The payment can be paid either online or in your local insurance company’s office.

For those who do opt for a paper bill, there are still options available to reduce your payments. Look into what the insurance company’s monthly service charge is just for mailing you a bill. Sometimes, this can turn out to be a high amount if you have a substandard policy. You can eliminate or lower this fee in a couple of ways.

One option is to consider paying your entire premium upfront, eliminating a service charge altogether. This also reduces any chance of forgetting to pay the bill and incurring a late payment fee. With this method, you are paying your premium and nothing else.

Another option to consider is to have your payment automatically withdrawn from your bank account. Making a payment in this way can help save money as most insurance companies offer a slight discount for enrolling in this service. It also ensures timely bill payment and no fees evolving from late payments. Always remember to notify your insurance company if you close the account or if you have limited funds. Failure to do this results in an insufficient funds notice, costing you more money due to the associated fees.

One way to have auto insurance savings is if you have a perfect driving record. If you are already insured by a company, you can get other discounts by taking a course on defensive driving. Most companies will show you this on their web site on a page about how to get more discounts.

Some companies will have a link for you to click on and go to a site that tells you all about the defensive driving course. On that site, you should be able to search for courses in your area. There will probably be a time frame in which you have to show the insurance agency that you have completed the course. In order to get the discount you will have to send them proof of the course by that deadline date.

If a person attends college, they may qualify for a discount for being a student (each insurer has different rules about this and the discounts involved for a person who attends school).

If a person insures multiple vehicles or other things, like homes and ATV’s with the same company, they will get discounts, too.

Your credit score can also help you to get discounts when you insure your auto. If you have great credit, this is a good thing.

With the availability of online companies now, finding auto insurance savings has never been easier. If you already have coverage, you can check out other companies to see what their rates are. If a company is online, you can go to their site and request a quote from their web site.

Some people get discounts because of the amount of time their car is parked. If you have not been driving your automobile as often as you used to, contact your insurance agent and ask them about the auto insurance savings you can receive for driving less.

Another way to save money on your policy is to lower the amount of coverage you have on your vehicle, if possible. If you have an older vehicle and are not paying monthly payments to a car dealer for this vehicle, you can put just liability on the vehicle now.

This is a personal decision for people, though. Some people want to keep full coverage on their vehicle in case something did happen. That is fine, but there might be a way to lower your monthly payment if you choose to keep full coverage. Contact your insurance agency and ask them if you can raise the deductible for the collision and the comprehensive. Having higher deductibles can help a person to have auto insurance savings, too.

Make full premium payments to get lower prices for your payments. When you pay per month or on a 6 month pay plan, you are paying a fee each time they issue you a bill, and possibly other fees, but if you pay it in one payment, you can save a few dollars this way.

Paid In Full Payments

Question your insurance company about pay in full options, whether they offer six month or one year policy terms. It is very possible that a discount may be offered for paying your auto insurance policy in full. Paying your policy in full is a good indicator to the insurance company that you are a loyal customer and will be staying with them through the life of your policy term. Therefore, it is logical that they would present a chance for you to save money. So, if you can afford to pay your policy in full, this affords a great opportunity to keep some extra cash in your pocket.

Automatic payments

Another incentive that an auto insurance company might present is an automatic payment plan if you choose not to pay the policy in full. Just as with the pay in full option, automatic payments might indicate to the company that you intend to stick with them for the long haul. Also, if they charge a fee to make a payment with them, it is possible that an automatic payment plan can help curb these additional charges or installment fees.

Bill Plans

Most auto insurance companies can offer a variety of bill plans to their customers. Examples of bill plans are:
• Monthly payment plans
• Eleven month or five month payment plans
• Quarterly payment plans

These different payment plans might not save you money, but the flexibility option is nice.
Always ask your insurance provider what options you have in your billing plan and ask them to explain the benefits of those payment options. You may be glad you did!

Always ask about discounts. If you are a student, many companies have discounts for getting good grades. Also there are discounts for being a senior citizen that you may qualify for. One of the biggest discounts that most people receive is for insuring more than one car under the same policy. If you have a second vehicle, insure them both in the same policy that way you can get a discount on your auto insurance. Often times, a company will even give you a discount if you have your life insurance, home owner’s insurance or renter’s insurance with the same policy.

Lastly, shop around. Don’t go with the first company you get a quote from. Call a few different agencies to get quotes before you decide. Ask them about every possible scenario so that you know whether that is the right place for you. Some might give you a quote over the phone but once you give them your information and they pull up your driving record and credit history, they will tell you that it’s a much higher cost that what you were quoted. The longer that you stay with a company, the better your insurance will be as well. If you are loyal customer, many times you will be given a discount for continuous years of service.

Choosing the right car to drive

The vehicle you drive will have an enormous impact on what your auto insurance premiums will be. Auto insurance companies go by risk and if your type of vehicle has a high theft rate or high repair costs then you are more at risk and your auto insurance premiums will be higher. If your vehicle is real expensive to insure then you might consider trading it in for another vehicle that would not cost as much. A good idea would be to talk to your insurance agent and see what kind of vehicles are not so costly when insured. You just might find a vehicle that you would love to own and is not to expensive to get insurance on. If you search online you may also be able to find a list with statistics that show which vehicles have higher theft rates and higher collision rates.

Increase Your Deductible

By increasing your deductibles you can save lots of money on your monthly premium. Your deductible is the amount of money that you will pay upfront and out of your pocket if you have to file as insurance claim, the auto insurance company will pick it up from there. The more you increase your deductible, the less your monthly premiums will be.

Dropping Some Coverage That you Don’t Need

Collision and comprehensive insurance account for over 40% of your auto insurance premium. If you have a real old car you may want to consider letting go the collision and comprehensive part of your auto insurance. Why? Because collision and comprehensive covers your vehicles replacement and if your car does not have much value you may be wasting your money.

Many people don’t know that having a good credit report can save them on their auto insurance cost. If your credit report is really bad some insurance companies will not even consider insuring you and if they do, your credit report will have an impact on what your premiums will be. If you have had a poor credit history you can sometimes pay up to 40% more than what you would have paid if you had a decent credit history.

Different credit data is used by different states by insurance companies. They will usually pull what is called an insurance score to judge what your risk as a driver is. It is very similar to a credit report but insurance companies pay more attention to your bill paying consistency than your overall balance/credit limit ratio. In other words it is not your credit score that the insurance company is concentrating on but how often you miss your monthly payments on your bills.

If someone is interested in getting a copy of their insurance score they can do so by paying a small fee. Just like everyone should do with their regular credit report, a person should look over the information in their insurance score to check for accuracy. Any errors that are found should be cleared up as soon as possible because by them being there can cost you thousands of dollars through out the years.

Those who have a bad credit history should always keep in mind that their credit score can be improved in time by paying their bills on time thus saving them money on their auto insurance premiums.

Passive restraint systems are most common in newer model vehicles and typically must be factory installed and meet federal safety standards to qualify for discounts. Air bags, motorized seatbelts, and effective head restraints all fall within this category. The National Highway Traffic Safety Administration claims almost 20,000 lives have been saved by air bags since their inception. Fewer serious injuries and deaths equal savings for insurance companies. Discounts are offered as incentives to drivers to purchase vehicles with these features.

Unlike air bags, anti-lock braking systems are considered an active system because they require some action by the driver to function. A key feature is the driver’s ability to maintain steering control while they are activated. Although statistics do not show a marked decrease in serious injuries or deaths in accidents involving automobiles with anti-lock braking systems, these systems have been shown to reduce the frequency of crashes and deaths, particularly on motorcycles, resulting in fewer insurance claims.

According to the Insurance Information Institute, over one million automobiles are stolen in the U.S. each year. Anti-theft systems drastically decrease the likelihood those vehicles will be stolen. For vehicles that are stolen, anti-theft systems that include a tracking device increase the odds of the vehicle being recovered.

Daytime running lights prevent collisions by making vehicles visible at greater distances. This feature is standard on several automobile models. Kits can be purchased to install the lights on vehicles that do not already carry the feature. General Motors estimates the cost of running this equipment to be approximately $3 per year for the typical driver.