It is required that every car owner carry auto insurance. What is not required is for you to pay an exorbitant amount of money to get it. Auto insurance companies will gladly take your money, but if you are smart about it, you will not have to give them as much money for your auto insurance coverage as many other people.

Pay All At Once

Start by first checking into lump sum discounts. Some auto insurance companies offer an additional discount for those that pay their auto insurance premium all at once. The average discount that is given for auto insurance prepayment is 10% off the total cost. Ten percent may not seem like a whole lot, especially on a month-to-month basis, but over the course of a year it can amount to some significant savings. If you have two automobiles, then this can amount to even more savings.

Combine Your Policies

Another way to lower your auto insurance costs is to combine policies into one account. A lot of the bigger names (and even the smaller named ones) offer multiple types of insurance. Besides auto insurance, they might also offer home insurance, health insurance, life insurance, etc. Find out if the insurance company offers a discount for those that combine multiple insurance policies into one account. The savings can vary from one insurance provider to another, but the average discount is usually ten percent. This discount goes on top of existing discounts and is not an either/or type of discount.

Be a Safe Driver

A third way to save is to simply drive safe. Do your best to avoid accidents and try to avoid any traffic tickets. If you do so, then you may be eligible for a safe driving discount. This discount goes on top of the other discounts, as well. The longer you are accident or ticket free, the more money you can save on your auto insurance.

These are just a few of the simple ways that you can save money on your auto insurance costs. There may even be more discount opportunities available. You will just have to ask your local insurance provider. Most auto insurance companies will not go out of their way to tell you about all of the ways that you can save money, but they will be more than happy to check into it if you ask them about discounts. They will act even quicker if you have a quote from another insurance company.

For more helpful hints on saving money, be sure to review the rest of the Embassy Loans blog!