Buying a car hurts the bank account. Buying insurance on top of buying a car hurts even more. But there are ways you can save on auto insurance. Let’s learn how to save big on your car insurance without giving up critical coverage.

Shop Around

Your insurance company knows that you probably won’t shop around. That’s why they’re able to profit from your inertia and slowly raise rates without any consequences. There are several reasons why this is a problem. You may be sticking with an insurance policy based on your old driving habits. Maybe you weren’t the best driver in the past, with a few speeding tickets and accidents under your belt. Now you’ve reformed, you could be over-paying given your risk profile. Or maybe you chose your current insurer based on incentives you’re no longer getting. For example, you may no longer be bundling auto, home and temporary van insurance with the same company. If you shop around, you could become eligible for incentives by businesses that want your business. You could save 5 to 15 percent just by shopping around. Compare car insurance with iSelect so you can find a cheaper policy with the same level of coverage.

Raise Your Deductibles

Your insurance company charges insurance based on the level of risk you pose and how much risk they’re taking on having to pay a claim. One way you can lower their risk is by raising your deductible. If your insurance pays out for every fender bender and dent in the door, they’ll have to pay to process claims and pay the claim itself. Raise your deductible, and they’ll only have to pay out for major accidents. Just make sure you have enough set aside in your savings to pay for the higher deductible. You’ll lose out on any savings if you have to charge repairs on a credit card with 20 percent interest.

Lower Your Risk Profile

We’ve mentioned that insurers will base your premiums based on the perceived risk you pose. New drivers can do this by completing approved driver training courses. Even experienced drivers may be able to get a discount on their insurance premiums by taking these courses. This is also a good thing to do if you recently received a speeding ticket. Another way to lower your risk profile is to drive safer. Don’t speed. Don’t drive drunk. Don’t get any more speeding fines. You’ll save money, not only on the fines, but over time as your insurance premium goes down.

Another tactic is to pay for modest repairs out of pocket instead of filing an insurance claim. For example, you could pay for minor vandalism damage or a fender bender out of pocket rather than filing a claim with the auto insurance company. When you’ve had fewer claims over time, your insurance premiums should drop.

Reassess Your Needs

Everyone needs the minimum level of liability insurance. However, if your car has survived several years on the road, you might want to save money by dropping replacement value car insurance. If you aren’t as concerned about the repair or replacement cost of the vehicle, you may want to drop comprehensive coverage too.