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Whether you are new to the insurance world, wanting to combine your policies or shopping for better rates or coverage, you probably have some questions. Here you will find lots of helpful information that will make it fast and easy to learn more about the often, confusing world of auto insurance.

If you are driving into Canada or Mexico, many people don’t realize that your American car insurance won’t cover you in a foreign country. You will need to purchase auto insurance ahead of time online, or in the border town or city where you will be crossing over into either Canada or Mexico.

If you can afford to do so, save some money on your car insurance by paying the entire year’s premium at once. Most insurers will offer the option to pay premiums monthly. But this adds on a fee for the convenience, which can add up over the course of the year. You can still save by splitting the annual premium into two payments.

If you are the head of the family purchasing auto insurance for your spouse and/or children, you can save money on your premium payments by bundling the policies. Instead of giving each driver his or her own insurance package, make sure everyone is insured with the same policy. This will save time, money, and allow for future group discounts.

When you rent a car, you will likely be asked if you want to purchase coverage for the vehicle. Before you answer, you should know whether or not your personal automobile insurance covers rental cars. If it does, how much is covered? Ask your agent, or read your policy to be clear.

If you are a young driver looking to purchase an auto insurance policy but do not want to pay an arm and a leg, a great step you can take is to get an older driver to share the insurance with you. Much like having someone with good credit co-sign a loan with you, having an older, experienced driver on your insurance will bring your payments down.

One great and underrated way to save on your monthly auto insurance premiums is to join an automobile club. Especially if you are driving a classic or rare vehicle, joining an auto club will allow you to join with a group discounted rate, ultimately saving you hundreds of dollars annually on your insurance premiums.

Exercise

A great way to save some money on your car or truck insurance is to drive your vehicle less frequently. Many of today’s best auto insurance companies offer discounts to customers for low-mileage, incentivizing people to keep their cars parked. If you can walk instead of drive, you can get some good exercise and save money on your insurance.

The information you have read, should give you the confidence so that you will be able to go out and make the right choice for your auto insurance needs. Now you should better be able to understand coverage, find affordable rates, keep your family safe and be prepared for any losses that may occur.

Note that every insurance company is different — not all of these ideas work everywhere. The first thing you can do to save money on auto insurance is to self-insure as much as you can afford. Do this in the following ways:

  • High deductibles. Everyone preaches this, yes, but it’s usually the easiest way to cut costs. Usually. (If your car is over ten years old, the savings may be minimal.)
  • Remove towing. Good maintenance and planning can save you money. Don’t run out of gas. Don’t lock your keys in your car. Make sure you have a spare and know how to change it. Sometimes your car willbreak down, but if your car is well-maintained, it won’t happen often. You pay $10 – $30 a year over the life of your policy and one tow costs $100. Note that in the event of an accident, towing is almost always covered under collision.
  • Remove car rental. Small economy cars cost about $20 – $25 per day to rent. Car rental is $20 – $40 per year. Play the odds. If you rent a car on vacation, your insurance will cover you while driving that car. Don’t pay for the extra coverage. The only things it offers are:
    1. Zero deductibles. You go all year long with your deductibles, why change now? Also, if you pay for the car with a credit card, they may pay for any out of pocket in the even of an accident.
    2. Downtime coverage. Downtime means that while the rental car you wrecked is in the shop being repaired, it can’t be rented out to other customers and they can ding you for the daily fee. This may be an issue if they can show that all other cars were rented out and they lost money because of you — Hawaii is notorious for charging this. But, again, it’s a risk you might decide to self insure rather than pay $21 a day for the insurance.

 

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