Ways to Lower the Cost of Your Car Insurance

How much do pay for car insurance? According to a study conducted by the Quadrant Information Services, U.S. drivers paid an average of $907.38 to insure their vehicles in 2014. Of course, rates can vary drastically from state to state, with drivers in Montana, Rhode Island, and West Virginia paying more than $2,000 per year for car insurance. Thankfully, though, there are ways to lower the cost of car insurance.

Get Multiple Quotes

Many drivers rarely, if ever, change their insurance provider. Once they sign up for insurance with a particular provider, they stick with them through thick and thin. But obtaining quotes from multiple insurance providers can save you big bucks. All it takes is a phone call, but that five minute-call could yield hundreds of dollars in savings per year.

Get a Higher Deductible

Let's face it, no one enjoys paying a high insurance deductible. If your deductible is $1,000 and the depreciated fair market value of your car is $5,000, you'll receive $4,000 in compensation (assuming your car was totaled). However, opting for an insurance plan with a higher deductible usually means a lower monthly payment. Go over the different plans and their respective deductibles to determine which one is best suited for your needs.

Bundle Insurance Together

Does your insurance provider offer discounts for bundling? If so, you should take advantage of this cost-saving incentive by bundling your home and car insurance together. This isn't going to yield a ton of savings, but every little bit counts. Furthermore, some insurance providers offer discounts when there are multiple cars insured under the same account.

Maintain a Clean Record

I know this probably sounds like common sense, but it's still worth mentioning that car insurance rates are typically cheaper for drivers who have a clean record. Accidents are bound to happen at some point in time, but you should use caution to mitigate your risk of having an accident. The fewer collisions you have, the lower your insurance will be.

Low Mileage Discounts

Check with your insurance provider to see if they offer low mileage discounts. As the name suggests, this is a premium discount given to drivers who tally fewer miles than other drives. If you only drive to and from work -- and your work is near your home -- you could be eligible to receive this discount.