Personal Finance

3 Things You Can Do To Save Money On Your Car Insurance Costs

If you own your own vehicle, you also need to ensure that that vehicle, and any person inside of it, is properly insured. Without auto insurance, it’s illegal to be driving your vehicle. And without the right auto insurance, you could find yourself in some major financial trouble if you have an auto emergency or get in an accident.

However, many people find it difficult to balance how much auto insurance they need or should have with what they’re actually willing to spend on this expense. So to help you find the right balance for you, and hopefully save you some money along the way, here are three things you can do to save money on your car insurance costs.

Pay Your Year In Full

For most auto insurance policies, you’re given the option for how you want to pay for your coverage. Typically, you can either pay monthly or you can pay annually or biannually.

While it will be a larger bill to pay, the staff of The Penny Hoarder recommends that you choose to pay annually or biannually in order to save yourself some money. By paying your bill in full as opposed to making monthly payments, you can save yourself, on average, about $62 each year. While this might not seem like a lot, every penny counts.

Play With Your Policy

Another easy way to reduce your car insurance costs is to play around with your policy and find ways to rethink about your coverage. According to Amy Livingston, a contributor to Money Crashers, some of the best adjustments you can make with your policy to save the maximum amount of money include dropping coverage you don’t need and increasing your deductible.

Especially if you have an older car that isn’t worth very much money anymore, or you have a decent amount of money in savings that you can use in case of emergencies, it could be very worth your while to change your coverage and deductible.

Commit Yourself To Being A Safe Driver

Your driving habits have a lot to do with how much your insurance company is going to charge you in order to be adequately covered. Because of this, Glenn Curtis, a contributor to, advises that you commit yourself to always being a safe driver.

As part of this, you should limit the things you allow in your vehicle to distract you, make a commitment to never drink and drive, consider taking a defensive driving course, and picking a safe vehicle.

If you feel like you’re paying too much for your car insurance and would like to find some ways to reduce those costs, consider using the tips mentioned above to help you find some solutions for your particular situation.