Paying for insurance that you don’t use often can be irritating, but it’s very important for the times that you do need to file a claim. However, to soften the blow to your budget, there are plenty of ways you can reduce your auto insurance premium. Your agent can explain them in further detail, but here are five ways to save to get you started.

1. Policy bundles: By bundling your personal insurance policies together with a single insurance company, you can save up to 10 percent across-the-board on your insurance portfolio. It’s a win-win; insurers get more of your business and you save money on the coverage you need. The most popular bundle in America is auto, home and life, but you can add virtually any policy to your bundle.

2. Fewer payments: Each time you make a premium payment, you will most likely be charged a processing fee. Even though these fees may only be a few dollars, they add up over time. To minimize what you spend on fees, simply make less payments. If you can, pay your entire premium for the year all at once. If not, try biannual or quarterly payments as opposed to monthly. You’ll save in the long run. 

3. Safe drivers: Safe drivers save money. It’s that simple. If you maintain a driving record free of tickets and accidents, your premium is likely to be lower than a driver who displays reckless behavior. Insurers calculate premium prices based on the risk level of each driver, so don’t give them a reason to classify you as a risky investment. Another way to save on auto insurance is by taking advantage of carrier’s telematics systems. Below are ways utilizing a telematics system can help you save: 

• Lower rates — Your safe driving habits get rewarded with lower insurance premiums.
• Safer driving — When you know your driving habits will get monitored, it motivates you to drive safely.
• Sign-up discount —  insurers will give you a discount just for signing up 

4. Good credit score: A person with a good credit score is typically more responsible than a person with thousands of dollars of debt racked up. So, similar to the point above, individuals with good credit are viewed as a less risky investment and, therefore, are likely to pay less for car coverage.

5. Discount options: Most insurance companies offer a variety of discounts to good students, loyal customers, seniors, military personnel, teachers and more. You may not be told upfront, but you can always ask your agent if you qualify for a discount on your auto insurance.

We’ll help you save on coverage. Call Paris Kirwan Associates at (800) 724-2627 for more information on auto insurance.