by Melissa A. Bartell

Created on: March 20, 2009

Every time you get in a car you are engaging in an activity that carries more potential risk than almost any other regular activity. One moment of hesitation, one wrong turn, one second of distraction, and the result is likely to be incredibly costly, in lives or injuries, and in insurance, when the accident claim makes your premium higher. It is easy to say, "avoid accidents," but more difficult to actually do it, even if a clean record - no crashes, no claims - can save you as much as 60% more than people who cause accidents. . There are, however, a number of standard discounts offered by most insurers that will help keep your premiums affordable.

*Safety First*

In addition to the savings you'll earn for having a clean driving record, there are a number of credits that may be offered for safety features in your car. These include:

-Anti-theft Device Credit. Security features such as an alarm, tracking devices such as Lo-Jack, locking devices for your steering wheel, and some engine immobilizers
can qualify you for this credit.

-Anti-lock Brake Credit. Is your car fitted with an ABS (anti-lock braking system)? If so, you may qualify for an insurance credit.

-Defensive Driving. If you take a defensive driving class for the experience, and not because you wish to "erase" a ticket, you may qualify for an insurance credit of up to 10%, good for up to three years. Even better, when the credit expires, you can repeat the course. Taking such a class with your teen-aged driver can also help off-set the cost of covering a young driver.

-Passive Restraints. Many insurers will give you a credit if your car is equipped with air bags

*Lifestyle Rewards*

Good grades and green living don't necessarily make you a good person, but these and other lifestyle factors can save you money on insurance. Specifically:

-If you are a college or high school student maintaining a B-average or better, you may qualify for an insurance credit.

-If your son or daughter attends a college one hundred or more miles from home, and does not have their car with them, their risk is reduced, and you could get an insurance credit.

-If you routinely car pool to and from work your insurance company may give you a credit for using your car less often, especially during busy commute hours.

-Some insurers give a low mileage credit for annual mileage totaling less than 14,000 miles, though in some cases the threshold is 10,000.

-If you are over fifty-five years old you may qualify for an insurance credit.

In addition to these discounts there are several other ways to reduce the amount of money you spend on auto insurance. They include:

-Bundling. You can save money if you have your home and auto insurance with the same carrier.

-Changing your deductible. Common deductibles, which are what you pay out-of-pocket when you make a claim, range from $250 to $500. Taking a higher deductible will reduce your premium, but only do this if you have the savings to cover the difference.

-Reducing your coverage. If you drive an older, paid-for car, with a low cash value, you should consider eliminating the comprehensive and/or collision coverage from your policy, especially if your car is worth less than it would cost to repair.

These are just some of the ways you can reduce what you spend on auto insurance, but depending on where you live, what you drive, and what insurance company you choose, there may be others. Always ask your insurance agent or broker if there are other discounts that may apply.

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