Keys to finding cheap auto insurance

Finding cheap auto insurance doesn't have to be difficult. In fact, there are a lot of things you can do to bring down the price. Here are some key tips.

Deduct and cover

Two of the biggest factors that go into determining your premiums are the deductible and coverage. By raising your deductible and reducing excess coverage, you will see a drop in price. But before you make those changes, be prepared to live with the consequences.

On the deductible front, you'll need to figure out if you're comfortable paying that amount out-of-pocket if you have an accident. When it comes to coverage, you can usually drop things like towing and rental without breaking a sweat. But reducing either your liability or uninsured motorist coverage will leave you exposed when you have a claim. So ask yourself if saving on car insurance premiums today are worth the risk of having to pay out-of-pocket down the road.

Consider the car

Insuring an expensive car will cost more than covering an inexpensive car. The greater the difference in value, the more you'll have to pay in premiums because the cost of replacing the car is greater. So if you really want to get cheap auto insurance, take a hard look at your vehicle. Generally, if you drive an older car, you'll pay less. However, some older cars may be harder to replace, which will drive up costs. And when you're in the market for a new car, you should definitely call your carrier to compare quotes.

What about the driver?

Being a risky driver will only add to your costs. Tickets and accidents will raise your premiums, while keeping a clean driving record and taking a defensive driving course can help reduce costs. But another way to save on auto insurance is to stay on top of your credit score, because insurers do charge more for drivers with bad credit. And remember to take advantage of discounts offered based on age, marital status and your profession.

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