(NAPSI)–What you pay for your auto insurance can vary by hundreds of dollars, depending on what type of car you drive, your accident history and the insurance company that provides the policy. To save money on your auto insurance policy, keep these seven tips in mind:
1. Ask about discounts. You may qualify for one if you haven’t had any accidents or moving violations for several years. If you drive a lower than average number of miles a year, you may qualify for low mileage discounts. Ask your insurance agent about discounts for:
• Antitheft devices
• Defensive driving courses
• Long-time customers
• Insuring more than one car
• No accidents in three years
• No moving violations in three years
• Student drivers with good grades.
2. Get multiple quotes. Rates can vary greatly and they change often. Review your coverage at least annually.
3. Reduce coverage on older cars. Consider dropping collision or comprehensive coverage on older cars. If the car is worth less than 10 times the annual premium, buying coverage may not be cost-effective. You can look up the value of your car at Kelley Blue Book, www.kbb.com.
4. Ask for a higher deductible. Deductibles are what you pay out before your insurance kicks in. By getting higher ones, you can lower your costs substantially. Before choosing a higher deductible, however, set aside enough money to pay for needed repairs.
5. Bundle your insurance. You can often get a break if you buy two or more types of insurance from the same provider, such as auto and homeowners. You may also get a discount if you have more than one vehicle insured with the same company.
6. Compare costs. Some companies offer a discount if you drive a hybrid or low-profile car. Before you buy a new or used car, check into the insurance costs.
7. Maintain a good credit record. Most insurers factor credit into pricing auto insurance policies. To protect your credit standing, pay your bills on time, don’t get more credit than you need and keep your credit balances as low as possible.
Check your credit record regularly and have any errors corrected promptly.
Talk with your friends, family and co-workers about the discounts they receive and ask your insurance agent about discounts specifically available to you.