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Who doesn’t like to save money? After all, a penny saved is a penny earned, and most people can save hundreds of dollars (tens of thousands of pennies) per year by simply choosing a different car insurance policy.

Of course, you have to balance your risks. Going with the state minimum liability on a brand new lamborghini could leave you with regrets should you get into an accident. For an in-depth look at how to safely and responsibly save money on car insurance, check out this eminently helpful link – DrivingGuide.com

But for four basic strategies you may want to consider as an overall approach to saving on car insurance, read on!

1. Consider the Demographics

Age, gender, and marital status will usually affect the cost of your car insurance. In California and a few others tates, changing rates based on gender or marriage is illegal, but everywhere else, it’s the norm.

Geographic location is also a huge factor determining your premium rates, and that can mean metro versus urban address, not just one state compared to another.

But there’s nothing you can do about demographics, right? That’s only half-true when it comes to car insurance. Sometimes, you can apply some simple but effective “strategies.”

For example, putting a policy in your wife’s name can lower the premiums even if both husband and wife will drive the car either way. And if you have two addresses, a summer and a winter home, insuring the vehicle in the state with lower insurance rates can save you a bundle.

2. Find Your Optimal Insurer

The exact same policy can come at a significantly different price tag, depending on the insurance company. But it also depends on which categories you fall into that that particular insurer uses to discount or augment premiums.

For example, many auto insurers knock up the price based on a poor credit rating, but many others do not. If you have below average credit, find an insurer who won’t punish you for it.

On the positive side, some insurance companies discount your rates for having a college education. If you have a degree, it could be worthwhile finding a company that will reward you for it.

The bottom line is this: different insurers calculate their rates based on different sets of factors and different specific formulas. So it’s not surprising that the same person with the same policy type is not charged identically by all.

3. Bundle & Pay Far Ahead

Once you’ve decided on a car insurance company, there are usually some special offers and discount programs you can get into.

First, if you live at the same address as another customer of that company, you may get a discount. Or, if you buy another type of insurance from the same insurer, such as life, home, or health, you’ll likely save due to bundling.

But if nothing else, you can usually save a good percentage by paying three months at a time as opposed to each month, or even every six or 12 months all in one lump sum payment. Insurers, like everyone else, like to get paid sooner rather than later, and if you accommodate them on that, they will accommodate you with lower rates.

4. Balance Savings And Risks

Finally, your policy type will obviously have a huge impact on the premiums. But there are still ways to save and ways to balance cost-savings and risk.

If your auto loan lender requires collision and comprehensive, going with a higher deductible will save you hundreds per year. If you stick with liability only, it may be worth it to increase coverage amounts for a relatively low premium increase – and it will still cost less than comprehensive.

These are just 4 major approaches that can save you on car insurance. You’ll find many more online on sites like Driving Guide.com, and if you do enough research and comparison shopping, you’ll almost certainly be able to save significantly on auto insurance.