The rising cost of fuel, tires, servicing and insurance make it more expensive than ever to own a car. But did you know the price you pay for your auto insurance can vary by hundreds of dollars, depending on a number of variables? Keep in mind these eight tips when looking to save money on your current or next auto insurance policy:

1. Ask about discounts

You may qualify for a discount if you haven’t had any accidents or moving violations for a number of years. Ask your insurance agent if discounts are available for the following, such as:

  • Antitheft devices
  • Defensive driving courses
  • Long-time customer
  • Insuring more than one car
  • No accidents in three years
  • No moving violations in three years
  • Student drivers with good grades
  • Paying in full
  • Purchasing a annual policy instead of the traditional 6 month policy

2. Bundle your insurance

You can often get a discount if you buy two or more types of insurance from the same provider, such as auto and homeowners or auto and renters. You may also get a discount if you have more than one vehicle insured with the same company.

3. Get multiple quotes

Rates can vary greatly and they change often. Review your coverage at least once a year and get multiple quotes from different insurance companies.

4. Calculate your mileage

As a general rule, the more miles you drive, the more chance for accidents and therefore the higher your premium. If you don’t accumulate much mileage, you might pay less.

5. Ask for a higher deductible

Deductibles are what you pay out of your own pocket before your insurance policy kicks in. By requesting higher deductibles, you may lower your costs substantially. For example, increasing your deductible from $250 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30%. But before choosing a higher deductible, be sure you have enough money set aside to pay for needed repairs.

6. Reduce coverage on older cars

Consider dropping collision or comprehensive coverage on older cars. A good measure to use when making this decision: if your car is worth less than ten times the annual premium, purchasing the coverage may not be cost effective.

7. Compare insurance costs before purchasing a car

You may have always dreamed of driving a sports car—but your insurance premiums could be a hindrance. Variables include the likelihood of theft, cost of car, repairs, overall safety, and potential damage the car can inflict on another car. On the other hand, 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.

8. Maintain a good credit record

Most insurers use credit information as a factor in pricing auto insurance policies. By establishing a solid credit-based insurance score, you can cut your insurance costs. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

There are many ways to save money on your auto insurance, just make sure that a low price doesn’t sacrifice coverage. Talk with your friends, family, and coworkers about the discounts they receive and be sure to ask your insurance agent about the discounts specifically available to you.

Still not sure you’ve got the right coverage?  Our experienced team of licensed insurance agents can help you. Visit Wells Fargo Auto Insurance to learn more.

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