Bundle All Your Insurance Policies
Most insurance companies that offer multiple lines of insurance also offer discounts for bundling policies together. If they allow it, you can bundle your homeowner’s or renter’s insurance with your auto insurance and pay less overall.
Keep a Clean Driving Record
While shopping around for the cheapest quote is the best way to find a reduced rate, maintaining a clean driving record, free from accidents and violations, is the most effective way to keep it low. Of course, this is not always the easiest feat to achieve, even for the best of us. Still, as the saying goes, an ounce of prevention is worth a pound of cure. Obey the rules of the road, travel with plenty of time to reach your destination, stay vigilant while driving (no texting or similar acts, distracted drivers are the #1 reason for accidents), and never use drugs or alcohol of any kind before and when driving.
Choose The Right Car
Certain models are more expensive to maintain and repair, leaving you with higher rates. Insurance companies take different elements into account, like the engine size, weight, cost and the probability of the vehicle being stolen. Basically, the more expensive the car, the higher your payment will be. When choosing a new model to drive, consider how it might affect your insurance premiums in the long run.
Use Pay-Per-Mile or Telematics Insurance
A fairly new idea in the car insurance space is pay-per-mile or telematics insurance, or the use of GPS technology to track car mileage. Pay-per-mile (PPM) or pay-as-you-go insurance is a program that charges a low monthly rate and additional premiums for every mile you drive. For drivers who drive less, this can be an affordable way to protect themselves with full coverage while keeping their rates low. However, not all providers offer this plan. You will need to find a specialized insurer that has the appropriate technology.
Suspend Your Coverage of an Unused Vehicle
If you plan on not driving your car(s) for more than a month, it might be worth looking into suspending or canceling your insurance on it and informing the DMV that you are storing the car. For example, California offers drivers to set their vehicle status to Planned Non-Operations. “Planned non-operation” (PNO) means that the vehicle will not be driven, towed, stored, or parked on public roads or highways for the entire registration year. During this time, you can remove your insurance and save that money or suspend most of it and retain your comprehensive-only coverage to protect it from damages while stored.