Sections

Yahoo!-ABC News Network | © two thousand seventeen ABC News Internet Ventures. All rights reserved.

• Yahoo!-ABC News Network | © two thousand seventeen ABC News Internet Ventures. All rights reserved.

Let’s say you live in Michigan, where the typical household shells out a whopping eight percent of its annual income on car insurance. Or maybe you live someplace where the rates are cheaper-Colorado, say, or Massachusetts-but you’d like to save some cash. Is there any way to reduce your yearly payments?

“While you’re most likely not going to budge to a fresh state just because of car insurance costs, the most significant thing to reminisce is that – regardless of where you live – you can get a better deal than the Average Joe by shopping around,” says Egan.

Here are some more tips.

1. Don’t pay for more coverage than you need.

If your car is over, say, ten years old, and you’re carrying collision and comprehensive coverage, you may want to look at pulling down that coverage. State laws don’t require that type of coverage, but most states do require basic liability coverage. You may cut your premium by twenty percent or more by doing this.

2. Many insurers suggest discounts if you buy at least two policies from them. A typical combination is car and home insurance policies. Discounts can be substantial. For example, Nationwide customers in some states receive as much as a twenty five percent discount for bundling.

3. You may be eligible for discounts based on age, driving record, memberships or other considerations. For example, drivers who are fifty five and older typically qualify for a senior discount. If your household includes teenage drivers, they may qualify for “good student” discounts. Online defensive driver courses may reduce your premium too.

4. Ensure your rates are based on accurate information.

Your car insurance company will determine your rates based on factors such as your age, driving record, geographic location and driving habits. But if something has switched that could reduce your rates, you’ll want to make sure your car insurance company knows about it.

You may be eligible for a lower rate if you’ve recently modified your driving habits. Example: You now work from home rather than at an office and are driving far fewer miles each week.

5. Shop around for a better deal.

If you think you can get better coverage for the same amount or less with another insurance company, obtain quotes online and talk with several insurers. Many consumers fail to look around for lower car insurance rates – and could be paying higher premiums as a result. If you’re displeased with your current insurer, tell the company that you’re considering a switch. The insurer may want to give you a price break to string up on to your business.

6. Points on your license mean higher insurance rates. It’s worth your while to go to court to get points diminished on infractions. In addition, many states permit you and drivers in your family to finish courses to reduce those points.

7. Deductibles as low $100 on your collision or comprehensive insurance raise your premium. Consider a $500 or $1,000 deductible-that’s the amount you must pay when there’s claim-and you may save hundreds.

Related movie: