Legally, you need a certain amount of car insurance to be on the road, and beyond that, you need to make sure that you have enough coverage to protect your vehicle in the event of an accident. However, if you want ways to keep your premiums down, then check out these money-saving tips.

Your premium refers to the payment you make monthly on your auto insurance, and your deductible is the amount you pay when you make a claim on your insurance. To explain, imagine you cause an accident and you need $3,000 worth of repairs. Your deductible is $500, so you pay that amount and your insurer covers the remainder.

As a general rule of thumb, the higher your deductible is, the lower your premiums will be. However, you need to play with your deductibles carefully. Make sure that you can easily afford whatever amount you select.



If your monthly budget is tight, you may want a low deductible so that you can come up with the money more easily after an accident. You don't want to be in a situation where you can't repair your vehicle because you can't afford the deductible.

2. Consider Adding Safety Features and Services

Safety features such as anti-lock brakes, air bags, and daytime running lights as well as many others can earn you a discount on your premiums. Some insurers even offer discounts for relatively new safety developments such as adaptive cruise control and lane-assist systems.



You may also be able to save by downloading a safe driving app to your phone or enrolling in a service such as OnStar. Talk with your insurer to see where you can earn discounts in your situation.

3. Make Sure You Have Ample Liability 

State law dictates the minimum amount of liability coverage you need when you own a vehicle. But, you should know that the mandated minimums may not be enough coverage in certain accidents. If you or someone on your policy causes an accident and the injured party brings a claim against you, your personal assets may be at stake if you don't have enough liability coverage in place.



To protect yourself, you may want to increase your liability coverage. While this step will increase your premiums, it can save you a lot of money in the long run if something ever happens.

4. Be Strategic About Adding Teen Drivers

Increasing liability when you add a teen driver to your policy is especially important because teens have a higher likelihood of causing an accident than other drivers. Whether you increase liability coverage or not, adding a teen to your policy usually drives up your cost, and to save, you need to be strategic.

Before your teen starts driving, talk with your insurer about potential ways to save. Typically, enrolling your teen in driver training courses and encouraging them to keep their grades up can help to save money. If you don't want your teen to be on your policy, you may be able to save money by excluding them, but you need to talk with your insurer about that as well.



However, special rules exist related to exclusions, and if your teen every drove your vehicle without permission, you may end up being personally liable.

5. Review Your Policy Regularly

Annually or more often as desired, go over your policy and make sure the coverage meets your needs. Add additional coverage where you're worried about facing an unforeseen expense after an accident, and remove coverage you don't need.

For instance, if you have multiple vehicles, you may not need rental car coverage to kick in after an accident. If your best friend owns a tow truck and is readily available, you may not need towing coverage.

Finally, also remember to do some comparison shopping and consider bundling various different policies. At American Quality Assurance Group, we offer multiple types of insurance, and we would love to give you a quote. To learn more, contact us today.