What is one way you can reduce your car insurance premium?

Maintain a good driving record Not only do you avoid costly speeding tickets or other traffic violations, but you'll also help keep your insurance rates low by demonstrating that you're a less risky driver. In addition, if you have a history of no claims or violations, you can receive additional discounts. You'll receive this discount when you quote car insurance online. When choosing car insurance, you can usually choose a deductible, which is the amount of money you would have to pay before the insurance pays the bill in the event of an accident, theft, or other type of damage to the vehicle.

Ask your insurance company about the company's different mileage thresholds, so that your efforts aren't wasted. Buying a huge SUV may sound exciting, but insuring a 5,000-pound top-of-the-line vehicle can be more expensive than insuring a lower-cost small (but safe) car. If your budget allows, consider paying higher out-of-pocket expenses instead of having lower deductibles with higher premiums on your home and car. To check the situation of a particular insurer, consider visiting a site that evaluates the financial strength of insurance companies.

Check with your credit card company to see if they offer roadside assistance benefits to cardholders, which could allow you to remove this feature from your car insurance policy. Also remember to compare the best auto insurance companies to find the one that fits your coverage and budget needs. However, people are sometimes surprised to discover that insurance companies may also consider credit ratings when determining insurance premiums. Simply choose to receive your insurance documents by email and you'll automatically receive a discount.

If you're comfortable signing your documents online (securely), that's another simple way to reduce car insurance. These discounts can range from as little as 1% to 39%, so be sure to show your insurance agent that your teen is a good student. If the policy includes a young driver who is a good student, has taken a driver education course, or is in college without a car, you may also qualify for a lower rate. Car insurance premiums are based in part on the price of the car, the cost of repair, your overall safety record, and the likelihood of theft.

Coverage and other features vary between insurers, vary by state, and are not available in all states. However, when planning a move, the possible change in your car insurance rate is something you'll want to consider in your budget. GEICO, for example, offers a “potential savings” of 25% if you have an anti-theft system in your car.