1. Shop around
Auto insurance is one area where it is worth your while to shop around. It's a good idea to compare rates from at least three insurance companies. There are online comparison sites, such as thezebra.com where you can compare rates from multiple insurers based on your vehicle type. Since how an insurance company handles accident claims is as important as the price, you may want to ask friends and family for their recommendations as well. Your state's department of insurance can be a good source of information about the financial condition of an auto insurer -- particularly helpful when it's a lesser-known name.
2. Buckle up and drive the speed limit
Many auto insurance companies offer good driver discounts. Following traffic rules and avoiding texting, eating or talking on the phone while driving means that you're less likely to have an accident.
3. Improve your credit score
More and more insurance companies consider credit scores when they are setting rates. Not sure of what your score is? Go to annualcreditreport.com to access free reports from the three major credit bureaus. Consider signing up for a credit monitoring service like Credit Karma to see how you are managing your credit is affecting your score.
4. Increase your deductible
According to kbb.com, increasing your deductible by a few hundred dollars can save you 15-40% in collision and comprehensive damage rates. Make sure you add your car insurance deductible amount to your emergency fund so the money is there when you need it.
5. Drive less
If you don't put a lot of mileage on your car, you may be eligible for a low mileage discount. Check with your insurer.
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