Having auto insurance is a must when owning a vehicle and we all would like to know ways that we can save money on our auto insurance premiums. There are many different various ways to save but we will discuss three different major ways here that can save you lots of money on your auto insurance premiums.

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.