Cut Your Insurance Costs In 2015

Over time, your car insurance costs could creep up without you even knowing. Whether you're being billed for added services or your policy was adjusted to reflect changes in inflation, your insurance can become quite expensive. What better time to reevaluate your car insurance than before New Year's Day?

So when you're making your New Year's resolutions in a few weeks, look into your insurance information and identify where you can save money heading into 2015. Here are six ways you can reduce your auto insurance expenses:

1. Buy a lightly used vehicle

The type of car you're driving has a large impact on the amount of insurance you are paying for. By opting for a different car, you could save a considerable amount of money. However, keep in mind newer cars typically result in higher insurance costs, as do sport cars and bikes. Further, if you buy a used car that is in poor condition, then your costs might increase as well. That's why it's best to settle for a used car that remains in good shape. This approach can lead to cheaper rates while still allowing you to drive a quality vehicle.

2. Look for alternative transportation

Depending where you live, driving can not only be a traffic nightmare, but also an expensive habit. Using public transportation or carpooling with others are great ways to reduce the amount of time you spend driving. There are many insurance packages available based on the number of miles you drive - fewer miles equals cheaper insurance. You'll also save on fuel expenses and maintenance costs by using your car less.

3. Compare insurance quotes

Your current insurance provider may not be the best fit for your needs. Most people get comfortable with their existing companies and forget that there may actually be better deals out there on the market. Look at all of your options and identify which insurer will offer you the best rates.

4. Pay all at once

While it may be more convenient for you to pay your insurance premiums in monthly installments, insurance companies prefer you do so in one lump sum - typically every six months. By paying everything up front, you can avoid hidden fees and graduated interest rates that increase over time. Further, providers usually give some kind of rebate for those who pay at once as opposed to monthly.

5. Combine your policies

If you have several different types of insurance with the same company, then it makes financial sense to bundle all of these policies together under one package. This will not only make it easier for you to manage your budget, but it will also save you money. For instance, if you have homeowners and car insurance, then you could combine them to pay just one cost. This will mitigate the amount of total interest you could be paying while also providing you with a discount because your insurance company will prioritize your loyalty after you've bundled your policies.

6. Ask about available discounts

Bundling's not the only way to get a discount. In fact, there are a number of factors that go into determining whether or not you're eligible for money savings. Some of the most common discounts are for safe drivers, honor-roll students, low mileage and cars that have advanced security systems. To find out about these discounts, speak with your insurance provider and figure out how you can save money on your premiums.

New Year's is a great time to get your insurance costs under wraps.

Contact CoverHound today for real-time car insurance quotes.