11 Cost-Effective Ways to Reduce Your Auto Insurance Costs

Auto insurance can be costly, even for those with an excellent driving record. The following are tips on how to reduce your current auto insurance bills without sacrificing quality. To ensure that you're getting the most discounts, simply print out the following list and use when you're ready to secure the best rates.

1. Usage Based Vehicle Insurance

If you have a good driving record, you may want to speak with an agent about a usage based auto insurance device. Once the object has been plugged into the vehicle, it will transmit data to the insurance agency based on your driving skills. Your rates will then be determined on how well you drive.

2. More Than One Vehicle Discounts

Whether you have one car or two, chances are you're paying a lot of money to insure each of the vehicles. But did you know that obtaining car insurance for two vehicles may be similar in price to just one car? If you can't get the same price for one, you may be able to garner a lower quote on both cars. Ask your insurance provider about discounts on multiple vehicles.

3. Secure a Yearly Policy

Although you may think it cheaper to change your insurance provider every six months, securing a yearly policy can be less costly. The agent deems it a greater advantage to lock in a consumer for the entire year. They also know that you won't shop around at the end of six months for a better rate. If you're unsure of the discounts, get both a yearly and six-month quote before securing.

4. Comprehensive Storage

If you don't use your vehicle the entire year and have it sitting in your garage, you may want to look into securing comprehensive storage coverage. Because the vehicle is not in use, you'll save money by not worrying about liability or collision coverage.

5. Mileage Check

Another excellent way to save money on car insurance is with a mileage check. If you drive a minimal amount of miles and stay within the allotment set by your insurance company, you may fall into a less costly insurance rate bracket. Speak with your insurance provider to determine their set mileage guidelines.

6. Group Discounts

Insureds who are affiliated with a group or organization may be granted a discount. This can include a credit union, company or college sorority. You may also be gifted a lower price based on your ties to a specific credit card. Your service center will be able to provide you with a list of the related organizations.

7. Assess Coverage

It's important to go over your insurance coverage well before renewal time. That's because your needs for basic coverage could change over time. You may want to start assessing your collision and comprehensive coverage first. If your premium is still high, you may want to tweak your deductible, liability and medical coverage for additional savings. While the costs may be lower, you don't want to sacrifice the quality of your coverage.

8. Automatic Payments

Airlines aren't the only business charging exorbitant fees. Your insurance company may also charge fees for mailed payments. Instead of mailing your check, ask your insurance provider if they offer deductions to have your payment automatically drawn from your bank account. You may also be able to give a credit card number.

9. Defensive Driving Instruction

When getting a quote on insurance, you want to ask your state commissioner or insurance provider if they offer discounts for defensive driving courses. Once the course has culminated, your rates could be discounted based on the state guidelines. The Internet will also have the closest recommendations for taking the courses.

10. Combine Other Policies

If you own or rent a home, you may be able to mesh both your home insurance and auto together. Having them within the same category can reward you with a discount of up to 20 percent. Ask your insurance agent how low they can go if you decide to blend the policies.

11. Keep a Clean Credit Rating

Watching your credit score monthly can help secure more buying power. A clean credit rating can also be used to obtain discounts on your car insurance. If you see blemishes on your report, you want to rectify the problems immediately.