If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances they are willing to give you a deal if it means you’ll bring in more of it.

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle.

If one of your drivers is a teen, you can expect to pay more to insure them. However, if your child’s grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.

Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.

2. Mindful Driving Cuts Costs

In other words, be a safe driver. This should go without saying, but in today’s age of increasing in-car distractions, this bears mentioning as much as possible. The more mindful you are, the more accidents or moving violations you’ll be able to avoid—events that raise your insurance rates. Travelers offers safe driver discounts of between 10% and 23%, depending on your driving record. For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums (all else being equal).

3. Take a Defensive Driving Course

Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course.

Make sure to ask your agent/insurance company about this discount before you sign up for a class. After all, it’s important that the effort being expended and the cost of the course translate into a big enough insurance savings. It’s also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses, and GEICO allows you to check what they are by state on its website.3

4. Remember, cheap doesn’t always mean good, and going with the lower-priced company isn’t always the wisest decision.

After all, what good is a policy if the company doesn’t have the wherewithal to pay an insurance claim?

To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.com’s site bases its insurance company ratings on data assembled by Standard and Poor’s.

5. Use Mass Transit

When you sign up for insurance, the company will generally start with a questionnaire. Among the questions it asks might be the number of miles you drive the insured automobile per year.

If you use your vehicle to commute three hours to work every day, you will generally pay more in insurance premiums than someone who only drives one mile a day. If possible, try to use mass transit to rack up fewer miles, keeping in mind that you will usually have to decrease your mileage significantly before incurring a discount. Ask your insurance company about the company’s different mileage thresholds, so your efforts won’t be wasted.

6. Larger Cars Cost More

Buying a huge SUV may sound exciting, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost commuter car. Some insurers will offer a discount if you buy a hybrid or an alternative fuel vehicle. Farmers, for example, offers a 5% discount.5

You can feel good about protecting the environment and save money on insurance at the same time. Find out the exact rates to insure the different vehicles you’re considering before making a purchase.

7. Increase Your Deductibles

When selecting car insurance, you can typically choose a deductible, which is the amount of money you would have to pay before insurance picks up the tab in the event of an accident, theft, or other types of damage to the vehicle. Depending on the policy, deductibles typically range from $250 to $1,000. The catch is that, generally speaking, the lower the deductible, the higher the annual premium.

Conversely, the higher the deductible, the lower the premium. Ask your agent how your premium might be affected if you raised your deductible. It may make the annual premium better by several percentage points and put some money back in your pocket, or the savings may be minimal. If you are reluctant to file smaller claims to avoid the risk of pushing up your premium, raising the deductible may be a particularly sensible move.

8. Location May Increase Costs

It’s unlikely that you will move to a different state simply because it has lower car insurance rates. However, when planning a move, the potential change in your car insurance rate is something you will want to factor into your budget.

9. Review Comprehensive Coverage

Dropping certain types of coverage can be a slippery slope. After all, nobody can predict if or when an accident will occur. However, if you are driving an extremely old automobile that’s on its last legs, it may make sense (depending on the cost, your driving record, and other factors) to drop collision or comprehensive coverage. The reason for this is that were the vehicle to be involved in an accident, the insurance company would likely total the car. If the value of the car is only $1,000 and the collision coverage costs $500 per year, it may not make sense to buy it.

10. Discounts for Anti-Theft Device

Individuals have the potential to lower their annual premiums if they install anti-theft devices. GEICO, for example, offers a “potential savings” of 25% if you have an anti-theft system in your car.6

Your insurance company should be able to tell you specifically which devices, when installed, can lower premiums. Car alarms and LoJacks are two types of devices you might want to inquire about.

If your primary motivation for installing an anti-theft device is to lower your insurance premium, consider whether the cost of adding the device will result in a significant enough savings to be worth the trouble and expense.

11. Speak to Your Agent

It’s important to note that there may be other cost savings to be had in addition to the ones described in this article. In fact, that’s why it often makes sense to ask if there are any special discounts the company offers, such as for military personnel or employees of a certain company. You never know what sort of discount pricing might be available for your circumstances.

That would be me, Cory Ellerbee, text or call me at (707) 419-5787, email works great as well, coryellerbee@gmail.com. Or if you like you can fill out the contact me form on this website bigcory.com