If you are like most people that work hard for every dollar earned and are wondering how to save money on car insurance, continue reading. Raising your deductible is the first method of reducing car insurance cost. The deductible is the amount the insured will pay at the time of an accident before the insurance company will pay the balance. The higher the deductible the lower the car insurance will be. For example, if one has a deductible of $500 and the amount needed to repair the vehicle is $3000, the insured will pay the $500 deductible and the insurance company will pay the balance of $2500.

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.