Shop around for car insurance.
This is the single most important thing you can do to get the best possible car insurance rate. The cost of a six-month auto insurance policy for the same driver with the same or comparable coverages can vary greatly from one insurance company to another. Stay smart and review your insurance coverage and shop around before you buy car insurance.
Know the market value of your car.
Car insurance companies generally only pay claims equal to a car's actual cash value or market value, so Comprehensive and Collision coverage may not be worth keeping on an older car that has depreciated. Consider dropping Collision coverage when the Collision premium equals 10 percent of the car's market value. Understand that by doing so, you will not be covered for damages to your car if it overturns or collides with another object. Also, if you have a lienholder because you've financed the purchase of the vehicle or you lease it, the lienholder may require you to insure for collision.
Raise your car insurance deductibles.
According to the Insurance Information Institute, raising your deductibles from $200 to $500 could reduce the Collision and Comprehensive cost of your car insurance policy by 15 to 30 percent.
Don't carry excess coverage.
When buying your car insurance policy, if you decide you want more than just Liability insurance, expect to pay more for each additional coverage you select. Optional coverages such as Rental Reimbursement, Loan/Lease Payoff and Roadside Assistance are benefits when you have a claim, but it's possible you won't need them on your car insurance policy. Other sources, such as an extended warranty, lease agreement or an automobile service like AAA, may already provide some of the same coverages to you.
Make sure your car insurance policy accurately reflects you.
Updating the information your car insurance company has about you, your car and your driving record is important. You may be eligible for a rate reduction if you have gotten married, moved to the suburbs, no longer insure a younger driver, installed an anti-theft device, or if it has been at least three years since your last violation.