If you own a car, you need to purchase car insurance. Car insurance is one of the most expensive purchases that users never want to use. Auto insurance is an unavoidable expense, but that doesn’t mean that you need to pay top prices to get the protection you need.

One of the best ways to minimize your car insurance premiums is by being shrewd about the type of vehicle you purchase. There are certain styles and brands of vehicles that are always going to cost you more on your premiums. For example, an expensive sports car or a European luxury model are going to cost you more than an American made sedan.

You should be able to drive whatever car you choose, and still save on your auto insurance. Let’s take a closer look at a few easy ways to lower your auto insurance costs.

Annual Review

Your car insurance may have been a great deal when you first signed up a few years ago. But, over time, your rates may have continued to rise even when you haven’t made a claim. One of the reasons for this is that many insurance companies offer discounted prices to draw in new clients that eventually run out after as little as a year. If you are tired of paying higher premiums each year, it may be time for a change.

When your premium is coming due, it’s a good idea to review your coverage. You may be able to make some changes within your current policy that could save you money. You can also shop around and take a look at what other insurance providers have to offer.

Deductible

One of the easiest ways to reduce your monthly insurance premiums is to increase your deductible amount. Your insurance deductible is the amount that you have to pay out of your pocket before you are paid for your claim. Most people set a $500 deductible. However, if you increase the amount of your deductible, it will lower your monthly premiums by up to 40%. If you choose to raise your deductible, you should put that extra money aside so that you have it available if you need to make a claim.

Bundle

Every insurance company wants your business and is willing to give you discounted premium prices for using them for all of your coverage. If you have a home, an RV, a motorcycle, and a car, you may have several different policies. By using one broker for all of your policies you can take advantage of significant savings on your insurance costs.

Discounts

Most insurance companies don’t advertise the discounts that they make available to their customers. For that reason, it is up to you to ask your broker if you may qualify for any of these savings discounts. Common insurance discounts include:

• Senior discount
• Military and Veteran discount
• Low mileage discount
• Safe driving discount
• Driver training discount

Maintain Good Credit

In most states, your insurance company will check your credit score when you apply for coverage. If you have a good score, you may be able to save on your insurance premiums. For customers that have a poor credit score, the insurance company is taking more of a risk and may charge more for coverage.

If you own a car, you will need to pay for insurance coverage. Follow these tips to help you save on your auto insurance.