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Cut the Cost of Auto Insurance

 Insurance for your car can get pricey! Find out the easy ways to cut your rates

By
Laura Adams, MBA
1-minute read

When you buy a new or used vehicle, remember to consider the insurance expense. A “family” car like a Honda Odyssey is cheaper to insure than a convertible Corvette, for instance. Other factors influence the cost of insurance (but may be out of your control at the time of purchase), such as your zip code, age, driving record, and credit score. Here are six tips to save big bucks on auto insurance:

  1. Choose a vehicle that’s inexpensive to repair because they generally cost less to insure. Get more information at the Insurance Institute for Highway Safety.

  2. Choose a vehicle with a low theft rate because that lowers the insurance cost.

  3. Track your mileage and report it to your insurance agency. Driving less each year because you’re working closer to home or because you begin commuting in a different car, may qualify you for a reduced premium.

  4. Get a volume discount by using the same agency for all your insurance needs.

  5. Increase your deductible to lower the monthly insurance premium.

  6. Shop around by comparing the exact same coverage from company to company. 

For more information refer to "Your Next Car--Should You Buy or Lease?"

Image courtesy of Shutterstock

About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlersbook is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.