While it is important to have the maximum coverage from your car insurance to cover all possible exigencies, paying the high premium is a disincentive. However, by being circumspect and sensible, you can lower your premium amount significantly while still getting the coverage you need. Some handy tips:

Choose Your Car Wisely 

While it can be great fun driving a sports car or a super-luxury saloon, you will find their insurance premiums very high. If you don’t want to spend a lot on car insurance, you should buy a modestly-priced car model, which is not an attractive target for thieves. Buying a used car can also bring down the cost of insurance significantly.

Shop for the Best Rates

If you shop around, you will be surprised to find out how much the rates differ for the same coverage. However, it is not wise to automatically choose the insurance company offering the lowest premium. You should check the fine print for the coverage details as well as their track record of settling claims and reputation for customer service. Perform a rate check every year before you renew the policy, says David R. Lampsen, a leading insurance consultant.

Buy Coverage Wisely

State regulations will specify the minimum coverage for your car, however, you should decide how much more insurance you require because a costly claim can wipe you out financially. Buy a basic insurance policy and then add other types of cover depending on what you need so that you can keep the cost down. If your car is old, you may decide not to buy a collision cover or theft cover. Similarly, you may have roadside assistance built into your car warranty, so you need not pay extra when buying insurance.

Optimize the Compulsory Deductible

Insurance companies insist on a mandatory deductible to deter frivolous claims, which means that every time you prefer a claim, you will need to bear the amount of the deductible from your pocket. If you have a higher deductible, it can knock off a good amount from your insurance premium. For example, raising your deductible from $200 to $1000 can give you a saving of around 40%. If you have a good driving record or don’t drive too much, a higher deductible can save you a lot of money.

Avail Of the Maximum Discount

Most insurers offer a variety of discounts to customers with a low-risk profile. For example, a good credit score, certificates in defensive driving, your age, installation of anti-theft and safety equipment, low mileage, membership of affinity groups, and your occupation can make you eligible for discounts. Even students can claim a discount if they have good grades. You can also get a discount if you bundle your home insurance with your car insurance with the same company, according to a Forbes report.


While you are focusing on saving the maximum amount of money, you should not lose sight of the fact that you need your claim to be settled quickly and without any hassle. Dealing with an insurance company with a poor reputation for customer service will prove expensive in the long run.


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