Don’t let your car insurance payment keep you from doing the things you enjoy in life. To help you hack down the amount you fork over each month for your monthly auto insurance plan, we have created a practical guide to follow.

1. Get good grades

No your parents did not tell us to create this addition. Insurance companies actually give discounts to astute students with a 3.0 or better, so make sure to ask your insurance provider about that. If you were ever wondering how you could get paid for going to school, this is it. You indirectly get paid by saving yourself cash on your payment by having good grades. Now you should have plenty of incentive to excel.

2. Go without comprehensive or collision coverage when its economical

Comprehensive coverage protects your vehicle from non-collision damages like natural disasters, theft, and vandalism. Hence, you can take a little risk by going without comprehensive coverage, then mitigate that risk by being smart with where and how you park.

Also, consider going without collision coverage when you have an older, less valued car. Think about it… If your car is only worth $2500 and you are paying $500 on collision insurance a year, is it really worth it?

3. Raise your deductible

Obviously, raising your deductible is the easiest way to lower your monthly payment. All this means it that you will have to pay more out-of-pocket if an accident does occur. Simply, drive safer.

4. Complete a defensive driving course

Once you raise your deductible, the pressure is on to drive safer to not get into an accident, so take a defensive driving course. The other tangible benefit of taking a defensive driving course is that insurance companies will appreciate you doing that by lowering your monthly payment.

5. The less you drive the less you pay

One factor insurance companies use to calculate¬†your monthly payment it the number of miles you anticipate driving. This is simply because, the less you drive, the less risk you have for an accident. Not only will you be saving the environment by driving less, but you will be saving yourself some bones for sodas or what have you…

6. Stay on your parent’s insurance and bundle your policy

Having more cars on your auto insurance will lower the overall cost for all parties. Even if your parents make you pay your portion of the bill, it will be much less than what you would pay for opening up your own policy.

7. The kind of car you have matters

Don’t act like a baller until you actually are a baller. That meaning, stay humble and buy an older car. That way you can have lower premiums because having comprehensive or collision insurance will be unnecessary. Also notably, if you buy an SUV, convertible or sports car your rates automatically go up due to these style of cars being more prone to accidents.

8. Have a car with anti-theft or security features

Another factor insurance companies calculate into your monthly payment is if your car has anti-theft or security features. Features insurance companies take into account are alarm systems, anti-lock brakes, automatic seatbelts, daytime running lights, driver-side and passenger-side airbags, electronic stability control, and rearview cameras. Simply by having these features your payment goes down.

9. Shop around

You are going to want to shop around to find the best rates. The extra work looking into the various rates from different companies will be well worth the peace of mind knowing you ended up with the best rate possible.

10. Make payments in the most efficient way

Most insurance companies will offer a little less of a payment if you set up automatic payments. Also, companies tend to favor clients that make automatic or make early renewals, so do not drag your feet during that time of year. Finally, ask companies if you can benefit from paying six months or a year’s worth of coverage at one time. The short-term cost is definitely worth the long-run savings.

We hope our car insurance guide helps you save some money to open up your budget to do things you enjoy most in life. Start your hunt to understanding car insurance costs.

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