Increasing the amount of money you pay if you have a claim can greatly decrease your monthly rate, so if you consider yourself a safe, low-risk driver you might be better off with a higher deductible. If you’ve had a few claims in the past, paying more each month might be a financially safer route.

Choosing Your Car

Choose carefully before you buy, some cars are more likely to be stolen than others. Check with your auto insurance provider to see what the rate is going to be like for the car you’re interested in driving. Also, any car that is considered sporty, high performance, or race-worthy can drastically increase your monthly rate.

Coupons

Check out some of the online coupon sites such as RetailMeNot before you buy. Also, if you’re on the phone with a representative from an auto insurance provider, make sure to ask them about any current specials or discounts.

The WSJ recently wrote:

…don’t be shy about touting your child’s grades to your insurer. Most companies offer “good student” discounts. For instance, State Farm takes 9% to 35% off a premium, depending on the student’s gender and whether he or she is kept on the policy as an occasional driver or is at school…

Knowing this, make sure to ask your insurance agent if they offer discounts for good-student drivers. Many insurance companies won’t give up this kind of information, so you have to ask for it, and at up to 35% – it’s worth it.

I did a bit of research and found the providers which have good student programs, along with the conditions to qualify.

• Geico’s good student discount

  Sometimes it pays to be a smarty-pants. Full time students with a good academic record could be eligible for up to a 15% discount on certain coverages. (In most states, policyholders between the ages of 16 and 25, who are full-time students with a “B” average or better, are eligible for this discount.)

  Full Details

• Allstate’s good student discount

  Good Student
  If you’re 25 or younger, unmarried, and a full-time student who meets our GPA requirements, you could save on your auto insurance premiums with this valuable discount. (In some states, the qualifying age is 21.)

  Full details

• Progressive’s good student discount

  Progressive offers a good student program, but it varies by state. You’ll have to call them for details. Progressive’s car insurance FAQ

• Esurance’s good student discount

  Being a good student doesn’t just mean proud parents and a successful future, it could also mean auto insurance discounts! Whether you’re still in high school, or getting a college degree, Esurance wants to reward you for your hard work. In most states, we offer auto insurance discounts if you’re under 25 years of age, maintain a 3.0 (“B”) grade point average or better, and are enrolled full-time in high school, community college, or university.

  Full details

• Nationwide’s good student discount

  Get up to a 15 percent discount on your auto insurance when your teen earns a B average or above on their report card.

  Full details

• Statefarm’s good student discount

  Statefarm varies state by state, but they do have a good student discount program. (You’ll have to fill out the form or call them for details). Full details

Please note The following video is very graphic.

More and more companies are allowing employees to telecommute, and even in a recessive economy, many people are starting businesses they can run from their homes. Working from home significantly cuts the time you spend on the road. Some insurance companies have caught on and now offer special telecommuter rates. And even if your insurance company doesn’t, it’s worth calling them and informing them of the reduced number of miles you’re now driving if you work at home.

If your job would prohibit your working from home all the time, talk to your boss about the possibility of working from home just one or two days a week. If your company doesn’t currently have any telecommuters, suggest working from home on a trial basis so your supervisor and company can gain assurance that it won’t affect your productivity. Be sure to mention how the company can benefit through reduced overhead. You’ll also be able to reduce what you spend on gas, and on auto insurance premiums.

It may also be possible to reduce your insurance premiums during periods of unemployment. Even if you’re driving to and from job interviews, it’s likely you’re on the road less frequently than if you’re driving to and from work every day. Talk to your insurance company and see if they’re willing to reduce your rates temporarily while you search for work. Better yet, try to find a job that will allow you to work from home and keep those lower rates permanently.

Ok, let’s get the obvious use out of the way. If you’re in an accident, you need to call 911, especially if there are any injuries. You shouldn’t have to run around looking for a phone to call an ambulance when someone is hurt in an accident. And if that someone is you, you’ll be grateful if the other driver has a cell phone.

Aside from injuries and reporting the accident to the police, there are other calls to make. If you were on your way to work, you need to call your boss and explain why you’re going to be late. You also need to call a spouse or other family member to let them know what happened. And you need to call your insurance company and get a claim started as quickly as possible.

The sooner the claim process is begun, the sooner you can get your vehicle repaired and back on the road. The insurance company will also need information about what occurred, when, and where, things you may forget once you’ve left the scene of the accident, or that you may not notice without prompting questions because you’re understandably shaken up by just having been in an accident. Getting an insurance agent on the phone as soon after the accident as possible will allow them to walk you through those questions and get the information they need that will help them serve you better.

Now, just any cell phone will serve this purpose. But before you turn down any of those bells and whistles when you buy a new phone, think about how they might help you in the event of an accident. Many cell phones now come with built-in cameras, some with better quality than others. Sure, you’re always going to get better resolution from a digital camera, but if you’re in an accident, a camera phone can really come in handy.

Depending on where the accident occurs, and if it’s a minor fender bender, you may need to move your car from the roadway as quickly as possible to avoid causing a traffic jam. Before you do this, it’s a good idea to snap a few photos of both (or all) the vehicles involved, and where they are in relation to each other before you move them. Get a few shots of the damage to your car. If you’re the one who rear-ended someone else, be sure to get photos of the damage you caused so it can’t be exaggerated later by an unscrupulous driver trying to get more money out of you. You can show these photos to the police when they arrive, and to the agent handling your auto insurance claim. And if things escalate and you end up in court because of the accident, photos may be important evidence to help your case.

Say you get rear-ended and the other driver decides to flee the scene. With your camera phone, you may be able to get a shot of the vehicle, or at least its license plate, before it speeds away. But even if preparing the camera takes too much time and the car is gone by the time you’re ready to take the photo, if your phone has voice memo capability, you can at least record the license plate number before you forget it, and you can provide this information to the police and your insurance company. Depending on how long of a message your phone can record, you may also want to turn that feature on if the other driver stays in order to record any conversation you may have. Most states allow this as long as both parties know the conversation is being recorded, and in some states, it’s enough for just one party to be aware of it. Check your state’s laws before using your cell phone in this manner.

It’s unpleasant to think about it, but if you’re in an accident, there’s a chance you may be badly injured and unable to call for help, or to notify your loved ones that you’re being taken to the hospital. Your cell phone can come to your rescue here as well. It’s becoming common practice for people to enter ICE numbers in their contacts list. These are In Case of Emergency numbers that will allow emergency personnel to quickly find and call those people who need to be notified that you’ve been hurt. You may even enter a contact as “ICE-Husband,” or “ICE-Mom” so that emergency workers know whom they’re calling. You may also list numbers as “ICE-1,” “ICE-2” and so on. This signifies an order of whom to call in case the primary contact can’t be reached.

Maybe someday insurance companies will give cell phones as free gifts when you buy an auto policy, the way banks used to give away toasters with new accounts. Until then, even if you hardly ever use it otherwise, it may be a good idea to get one yourself, just in case.

We’ve compiled a list of the factors that auto insurance companies take into account when calculating your rate, including age, driving history, theft, location, credit score, and whether or not you own a new or used vehicle. You can read the full list here: Article Insurance Factors

1. You need it – If you’re still making payments on your car, you must have insurance. Your lienholder will require it to ensure they are able to recoup any losses if your vehicle is damaged, totaled, or stolen. Most states also require a minimum amount of coverage. Even if your car is paid off, and you happen to live in a state that doesn’t require any coverage, you need insurance. The small amount of money you would save by not paying a monthly premium is insignificant compared to what you would have to pay if you were at fault in an accident, or worse, if you were injured. Insurance provides protection and peace of mind.

2. Your lienholder may have certain requirements – If you’re buying a new car, or thinking about switching insurers on a vehicle you’re still paying for, find out if your lienholder has any requirements about the kind of auto insurance you need. Some banks will require a low deductible. They want to make sure you’ll be able to pay it if you need to. This is also important to know because a lower deductible will in turn give you a higher premium. Check with your lienholder before calling any insurance companies.

3. There are several factors that determine your rates – Other than the deductible you choose, insurance companies determine your rates based on several factors such as your age, whether you’ve been in any accidents before, and your credit score, just to name a few. Look over these factors and know where you stand before you start asking for quotes.

4. Requesting a quote can affect your credit score – It’s best to do as much research online as you can before you start requesting quotes from insurance companies. The first thing any insurance company will do before calculating a quote is check your credit. A high number of inquiries on your credit report can have a negative effect on your credit score, and it doesn’t matter that they’re a result of your attempt to comply with your state’s auto insurance requirements. Do your homework, narrow your choices down to three or four companies, then request quotes to keep the number of credit inquiries low.

5. You can create your own discounts – Most insurance companies will offer their policyholders discounted rates for having more than one policy with them. This can be accomplished by insuring more than one vehicle, or by adding another type of policy, like homeowners insurance. Many companies will also offer discounts on auto insurance if your vehicle has anti-lock brakes, airbags, or an anti-theft device installed. Keeping all your policies with one company, and making sure your vehicle has as many of these options as possible can help you save money.