Ensure your insurance company is aware your vehicle is equipped with any safety or security devices, such as: a club, alarm (including a passive alarm), ABS brakes, air bags, automatic seat belts, etc. because you are entitled to receive a discount. Purchase a club, if you don’t already have one. The insurance cost decrease will offset the cost of the club and provide a security deterrence.

        Several insurance companies require you to carry a higher than normal amount of coverage, thus increasing the insurance cost, for a vehicle purchased through a bank loan. After the loan has been paid off, contact your insurance company to lower your coverage to a level that better suits your needs, not the insurance company's.

        Raise your deductible. The higher the deductible, the lower your comprehensive and collision insurance. The insurance company assigns a rate dependent upon the likelihood you will be the cause of an accident. Many factors contribute to the rate, such as: age, sex, vehicle, and geographic location. Raising the deductible turns the table because you are now betting you will not be the cause of an accident. The increase in the deductible will be offset by the decrease in the insurance, assuming you are not at fault in an accident. Before raising the deductible, ensure enough money can be accessed easily to cover the deductible cost in case you are at fault in an accident. A good driver will then be rewarded with lower insurance rates.

        Medical insurance offered by car insurance companies is not necessary if you carry adequate medical insurance from your employer. There is no need to duplicate expenses for the same benefit.

        Don’t carry collision insurance on an older vehicle. The cost of the collision insurance over a couple of years may be more than the value of the vehicle. Instead save the money for the purchase of another vehicle, particularly if an accident occurs. Evaluate the decision determining the best course of action. Contact your insurance company asking what they would pay you for a total loss because you may be surprised.

        Ask the insurance company for a list of all items that can result in a discount. Examples are: more than one vehicle ensured by the same company, accident-free for several years, low annual mileage, good student (must be single and under 25), student lives away from home, over 50 years old, or completion of a defensive driving course.

        Keep in mind the same principles may be applied to homeowner's insurance as well.


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