How to reduce the costs of car insurance

Car insurance is a contract which binds the insurance company to protect you from any financial loss that arises from any accident, damage, or theft of your car. However, the cost of insurance has been rising steadily with insurance companies having to settle too many accident claims and costly repairs. With most cars fitted with modern sensors, lane-departure alerts, high tech headlights, advanced driver assistance systems, any damage to these result in very expensive replacement or repair costs. With the addition of claims due to natural calamities, the insurance companies are incurring losses resulting in an increase in premium rates. Experts and analysts say that individual car owners can still reduce the cost of car insurance by some smart decisions.

Make use of discounts
Car insurance companies offer discounts for safety features, lower mileage, multi-car discounts. These discounts could range from 5 to 30%. Many companies offer discounts for affiliate groups – you can check out if you are eligible for any and buy policies which could offer you an additional discount.
Attend safety classes
Some states offer discounts for a good safety record and those who take safety classes. These offer 5 to 15 % additional discount, but there are some riders. You can enroll for these 4 to 6 hours courses costing $25 to $75 and become eligible in a reduction in your insurance rates.
Good credit report
Prompt payment of bills and maintaining a credit history not only reduces risk factors when auto insurance companies evaluate your profile but also get you better rates.
Good driving record
Fewer traffic violations and lesser collision or accidents on your record for the past 3 or 5 years definitely gets you a better rate.
Multiple Insurance from the same company
Instead of purchasing standalone car insurance, you can opt for additional insurance like home insurance from the same provider, which could get you additional benefits or discounts on the rates.
Deductibles
Say in the case of an accident and the cost of damages is around $2500, and the deductible you have opted for is $300, all you have to pay is $300 towards the repair. Increasing the deductible to $500 makes you eligible for an additional 15-30 % discount and increasing the deductible to $1000 increases the discount on a premium to 40%.
Upfront payment
By paying the policy amount in advance, gets you an additional 5 to 10% discount. Most insurance companies offer this benefit.
Older cars
If your car is more than 8 or 10 years old and has an estimated worth of $3000, you can opt out of collision and comprehensive coverage as they are optional.
Compare
With every tiny bit of information available online, you can use a website that compares insurance costs. Calculations can be made with all permutations and combinations of features. Use this comparison as a guideline to shortlist the policy which suits your requirement, budget and offers flexible payment options. Do not commit to an insurance policy unless you are absolutely sure that you are getting the best value for your money.