All car owners in the U.S. are required to have automobile insurance in order to protect
themselves and other drivers. Unfortunately, car insurance costs can be significant but you still
have some power to take action to reduce the costs of insuring yourself as an automobile
owner. Although insurance is highly regulated you should know that not all insurance companies
and insurance policies are the same. The following are some tips to help you save money on
automobile insurance.

Shop around

There are many different insurance companies that offer automobile policies, each with varied
pricing and benefits. This means that if you put in the effort to check out numerous insurance
companies and compare their products to each other you might be able to save yourself some
money by finding the best deal possible for your needs.
Shopping around can really make a difference if you have recently been in an accident, have a
low credit score, or have an insurance claim on your record. Each insurance company will treat
these items differ in their assessment of your insurability. However, if you do have a perfect
driving record and good credit you should still shop around for a good deal.

Avoid purchasing too much coverage

More is not always better when it comes to buying automobile insurance. You should
understand that the more coverage your insurance policy offers the higher premiums you will be
paying each month. For example, if your car is older you may want to skip paying for certain
kinds of coverage, such as comprehensive insurance which covers damage to your vehicle from
incidents other than accidents on the road. Another provision you may want to forego is collision
insurance which provides coverage for damage to your car resulting from a collision in which
you were deemed at fault.

Think about increasing your deductible

Another option for reducing your insurance costs is to consider asking for an increase in your
deductible. Your insurance policy’s deductible is the amount of money you will be required to
pay on a claim before your insurer starts paying for damages. When your deductible is higher

this generally coincides with a lower monthly premium charge. For example, if your policy
provides a $400 deductible you will receive $2,100 for a $2,500 claim.

Bundle different insurance policies

Insurers commonly offer various types of insurance besides automobile coverage. You can
usually obtain lower premiums if you bundle these different types of insurance policies with the
same insurer, allowing you to obtain a bulk discount. For example, you can bundle your car
insurance with your home insurance for lower total monthly costs.

Determine your insurance needs
How much insurance you need and what particular coverage you require will depend on
circumstances that are specific to you. This is why making decisions on insurance should be
integrated into your overall comprehensive financial planning. Hiring a professional financial
advisor will put these types of decisions into the proper context with a broader perspective on
your overall financial planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not
guarantee that it is accurate or complete. Any opinions are those of the author and not necessarily those
of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.
There is no guarantee that these statements, opinions or forecasts provided herein will prove to be