How to Keep Your Premiums Low

by Michele Postler, Wednesday, November 28, 2012

It has been reported that Lindsay Lohan’s auto insurance payments are up to six figures. What an outrageous amount to be spending on auto insurance, even for a celebrity. She does have two accidents under her belt, as well as a DUI, couple that, with having a very expensive car at a young age and we can see why the payments would be so large.


There are a couple of tips to take out of this extravagant behavior, how to avoid paying too much on your car insurance.


  • Safe driving is the most obvious way to reduce your car insurance premiums. Try your best to avoid accidents and make sure not to leave the scene when you are in an accident. This will cause more harm than good. Accidents are sometimes inevitable and not your fault but its important to be aware and take steps to avoid a collision. Like keeping your focus and being aware of your surroundings while driving.
  • Obeying traffic rules will keep points off your insurance premium. If you do end up with a traffic ticket there may be ways to avoid an increase of your premium. Some companies offer an option to take a driving class in lieu of an increased premium.
  • Less expensive cars keep your insurance premium low. Expensive flashy cars are so tempting if you have the money and are shopping for something new. But it’s cheaper to go for the less expensive, not only for the initial price but also for your insurance premiums. More expensive cars not only increase your premiums but also are a more likely target for theft. Most cars these days give you just as many features and perks as the extravagant cars, with a reduced price tag.
  • Safety features on your car will warrant a discount as many insurance companies give discounts for cars that have safety features, like airbags, antilock brakes, and antitheft devices. If your auto insurance provider hasn’t asked you about this discount you should mention it when buying insurance.
  • Loyal customers often get lower prices from their insurance company if they have a safe driving record and they stay with the same provider. If you are renewing your insurance, find out with kind of discounts your current insurer will offer you for staying with them. Often times they will give a discount as they don’t want to lose your safe driving record.
  • If you are part of a program like AAA you may also receive a discount on your insurance premiums. But there are other memberships that afford you a discount on your auto insurance. When you are buying your insurance tell your agent about ones you think are relevant, you never know, you might get a discount.

If you live in a highly populated city with a no-fault insurance system you are most likely paying some of the highest insurance rates in the country. It is always good to shop around for cheap auto insurance quotes. And remember to make sure you are adequately covered for your type of car. If you have a newer car you will need full coverage auto insurance.