Over your lifetime, just think about how much money you’ll spend on insurance premiums.  Whether it’s auto insurance, health insurance, or any other policy, those premium checks can really add up.

If you’re looking to save on your auto insurance premiums, what can be done?  Are you taking advantage of these discount opportunities:

1. Vehicle Safety Features – Is your car equipped with anti-lock brakes, airbags, or anti-theft devices to name a few?
2. Multiple Insured Cars – Do you have  several cars insured with the same insurer?
3. Affinity Discounts – Are you a member of an association that offers its members discounts on various services?
4. Relationship – How long have you been with the same insurer?
5. Combined Policies – Do you have your home insured with the same company?
6. Scholar Children – Do you have teen drivers in your household with greater than a 3.0 GPA?
7. Short Commuting Distance – Is your workplace just a few miles away from your home?

If you’ve answered yes to any of these questions, be sure your insurer knows about it.  Otherwise, you’re leaving money on the table.

With so much attention on gas prices, many Americans have cut back on their driving to save money. However, less driving can actually lead to another savings opportunity, paying less on your car insurance. If you have cut back on your driving lately, it’s a good idea to contact your agent or insurance company.

Consumers who are now utilizing public transportation or participating in car pools stand to save, because reducing the number of miles driven could lower the cost of their car insurance premiums.

Many insurers offer low mileage discounts to insureds who put fewer than 7,000 miles a year on their vehicles. While each insurer calculates rates differently, they all consider mileage because naturally the risk of an accident increases proportionately with the more time you spend behind the wheel.

However, lessening the risk of accidents isn’t the only benefit to driving less. The dollars you can potentially save is significant. A motorist who goes from 15,000 miles driven per year to 7,500 miles could qualify for say a 5 percent premium discount. Whereas, a driver who goes from 15,000 miles per year to 5,000 could save as much as 15 percent. Note that your insurance carrier may ask for an annual odometer reading to calculate annual mileage.

The Insurance Information Institute noted additional ways drivers could cut their auto insurance rates. SUV and truck owners who swap in their vehicles for a more fuel-efficient one can also reduce their insurance costs. Rates are substantially lower for a $25,000 sedan than a large $60,000 SUV. Besides the vehicle price, an insurer will determine the applicable premium rate for an individual vehicle based on factors such as the repair cost, its overall safety history and the chance that it will be stolen.

Motorists can also reduce their auto insurance premiums by opting for a higher deductible, establishing and maintaining good credit, and dropping unneeded coverages. Additionally, if you insure your boat, RV, or motorcycle with the same insurer, you may qualify for a multiple policy discount.

With the economy stuck in a downward rut, consumers all across the country are cutting back and trying to save wherever possible. Unfortunately, most never consider that they could be throwing money out the window by overpaying on car insurance.

If you’re wanting to save on your auto insurance, stay clear of these common car insurance mistakes:

Mistake #1: Not shopping around for the best car insurance quote.

If you choose the first quote that comes your way, you could be overpaying. It’s worthwhile to shop around and find the best deal available. When it’s time to renew, it’s all too easy to remain with the same insurer-but you won’t save any money that way. Car insurance companies all calculate rates differently, so you may find a much better deal somewhere else.

Mistake #2: Electing your state’s minimum coverage requirements

Although it’s tempting to choose the bare minimum car insurance coverage amounts required by your state, this could cost you over the long run. Just because you are in compliance with applicable state laws doesn’t mean you are fully protected. If you are underinsured, a single car accident could destroy your personal finances. Everyone’s financial status and budget is different, so talk to your insurance agent to discuss how much coverage you need.

Mistake #3: Choosing the lowest deductible

In the car insurance market, the deductible is the amount of money you’ll pay out-of-pocket on car repairs before the insurance company covers anything. Many consumers make the mistake of assuming the lowest deductible will save them money come claim time. However, this is not always the case.

Generally, if you buy a policy with a lower deductible, you’ll pay a higher premium. Over the long run, you’ll save more money by choosing a high deductible insurance plan with a lower premium. Do your homework to figure out what makes sense for your situation.

Mistake #4: Choosing coverage based only on cost

While you should definitely shop around for a cheap car insurance rate, this isn’t the only item to consider. As you compare coverages, examine the various benefits each insurer has to offer. Choose the coverage that best suits your needs first and afterwards compare prices.

Mistake #5: Ignoring major discounts

If you’re a safe driver or insure your car and home with the same insurer, you should be eligible for a premium discount. By taking time to learn about the available discounts from various insurers, you could save hundreds of dollars this year.

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If your teen is ready to get behind the wheel, it’s time to think about your car insurance options.  While a mind-numbing thought for most parents, with a little research and careful planning you can certainly obtain affordable car insurance for your teenager.  Let’s review some ways to reduce the cost of your teen’s auto insurance.

Driver Training

Most teens opt for driver’s education programs offered at their school, and thankfully many car insurance companies offer discounts to drivers who complete a driver’s education course successfully.  Also, driver’s education provides proper behind-the-wheel training for your teen.  The instructor can teach all the road rules while  demonstrating proper driving techniques, such as defensive driving.  Learning how to drive properly helps decrease the chances of careless driving.

Pick Cars Wisely

Teens and sports cars – these two words shouldn’t be mixed if you’re shopping for auto insurance. Sports cars  carry higher insurance rates for drivers of all ages, but for teens especially.  Opt for a sedan with all the latest safety features.  And your insurance company may even offer discounts for some safety features, such as anti-lock brakes, air bags, and others.

Understand the Law

Stress to your teen that although driving is pleasurable, it’s also a serious undertaking.  Make sure they understand how the law works and associated penalties for speeding, reckless driving, drunk while under the influence, not buckling up, etc.  Make sure they understand that even one traffic offense can raise their car insurance rates for years to come, and may even cause a loss of  his driving privileges.

Good Student

Most insurers offer discounts to students who excel in the classroom.  Insurers  offer this discount because statistics show that a teen who demonstrates responsibility in school is likely to do the same while behind the wheel.

Consider an Add-On to Your Policy

When your teen first starts driving, you should consider adding him to your current insurance policy at least in the beginning.  You can do this so long as you remain the primary driver of the insured vehicle. In doing so, your teen will enjoy lower rates based on your discounts and age.

Shop Around for the Best Deal

You will be surprised at the rate differences among carriers.  Every insurer differs in what they consider to be a high risk driver.  Some insurers specialize in insurance for young drivers and can offer cheaper rates than competitors.

Having a teenage driver creates awareness about car insurance like nothing else.  Use these tips to guide you as you hunt for car insurance that will provide the most bang for your buck.

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Auto insurance can be a large expense in a family’s budget, and it makes sense to look for ways to reduce the cost. In addition to shopping for a better deal, some car owners may look at all the coverages they’re paying for and wonder if they need them all. One coverage that often has a big price tag is collision coverage – the coverage that pays to repair or replace a vehicle that has collided with another car or object. If the owner still owes money on the car loan, the bank will require her to keep comprehensive car insurance. Once that loan is paid off, does is make sense to drop the coverage? The answer depends on several factors.

First, how much is the car worth? Several resources are available to help answer this question. Check the classified ads in the newspaper to see what sellers are asking for vehicles of the same age and model. Publications like the N.A.D.A. Guide and Kelley Blue Book can suggest a starting point for determining value. Web sites like Edmunds.com offer calculators that take into account the vehicle’s mileage and condition.

How much does collision coverage cost? This information should be clearly stated on the insurance policy’s information page. Since many auto insurance policies run for terms of six months, the annual cost may be twice the amount shown on the policy. Compare the annual cost to the vehicle’s value. How many years of premium payments would equal the vehicle’s value? If the answer is a low number, dropping the coverage may make sense. Keep in mind two things: Collision premiums decrease as a vehicle ages, stabilizing when it’s several years old. Also, in the event of a total loss, the insurance will pay less than the vehicle’s value because the policy’s deductible will apply.

The amount of that deductible is also a consideration. This is the amount that the vehicle owner must pay out of pocket even when the insurance applies. If a collision destroys a car worth $3,000 and the policy features a $500 deductible, the most the insurance company will pay is $2,500. Therefore, an accurate estimate of the cost of collision coverage must include both the premium and the deductible. The premium decreases as the deductible increases, making the insurance more affordable and the loss less so.

Perhaps most important, the vehicle owner must determine what she can afford to pay out of pocket if a loss occurs. If she has a sizeable emergency fund in the bank, she may decide to skip the coverage and add the savings to the fund. If savings are skimpy and buying a replacement vehicle unexpectedly would present a financial hardship, keeping the coverage may be more prudent. Dropping the coverage also imposes other costs on the owner, such as time spent finding a replacement and negotiating its purchase, finding alternate transportation in the interim, and possibly renting a substitute.

Finally, dropping the coverage may mean the loss of associated coverages. For example, some companies offer rental reimbursement and towing and labor coverage only to customers who buy comprehensive and collision coverage. Some companies may also offer other benefits like “concierge” claim service to those customers. The vehicle owner must decide how important these are to her before she makes her decision.

Ultimately, each vehicle owner must decide how much financial risk she can bear on her own versus the certain cost of the insurance. An insurance agent can provide information on alternative deductibles and offer guidance. However, only the owner can decide whether the cost of the coverage is worth the potential benefit.

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