Three Easy Ways That You Can Reduce Your Auto Insurance Bills

The average American pays a little more than $900 per year for his or her auto insurance policy. If you like the idea of paying even less, there are many ways to accomplish your goal. You don't have to cancel your existing policy and compare different quotes online to get a better rate; while often effective, this strategy takes up your valuable time. Instead, you can benefit from talking to your insurance agency representative to discuss getting a discount or change your driving habits to put yourself in line for a price drop. Here are three ideas you can try.

Get Rewarded For Loyalty 

Your auto insurance provider understands the ease with which customers can shop around, compare different quotes online and switch companies. As such, many providers choose to offer discounts to reward long-time customers. If you've been with your current insurance company for several years, call and ask when a loyalty discount will kick in. While the exact parameters of this discount vary according to the company, many agencies will lower your rate by as much as 15 percent once you've been with the company for five years or more. While you might have to wait a little time for this discount to kick in, it's nice to know that it's on the horizon for you.

Avoid Excessive Use Of Your Vehicle

If you live in a city that has convenient access to public transportation or you're able to walk to various locations with ease, it's advantageous to consider leaving your vehicle at home whenever possible. Many insurance companies reward low-mileage drivers; the theory is that the less time you're on the road, the less chance you have of being in an accident. Check with your provider to determine the mileage threshold to quality for being a low-mileage driver. Typically, it's 5,000 miles and keeping to this limit can save you about eight percent on your rate.

Expand On Your Driving Knowledge

You might consider yourself to be an adept driver, but a certificate to this effect can put you in line for a rate reduction. After all, your enhanced driving skills mean that you'll be more likely to avoid any potential accidents. Enroll in a defensive driving course and, upon completing the program, let your insurance agent know about your accomplishment. Once you've submitted proof of your course completion, you'll often find yourself getting a rate reduction of about 10 percent.