People often look for ways to lower their auto insurance costs, which are a necessary expense for many. Despite what some drivers may think, buying the minimum amount of protection that is required or driving without any coverage at all are not the best ways to cut costs. Being uninsured or underinsured could lead to heavy financial loss after an accident. Instead, vehicle owners should try some of these helpful and effective ways to save money.

1. Compare Quotes Online: Not all auto insurance companies offer the same rates. Just like with almost any other product, there are some producers that claim to have the cheapest prices, some that offer the best service, and others that claim to do both. The only way to truly to get the cheapest insurance available is to shop around and compare estimates from as many sources as possible. When people use the Internet to do their shopping they can easily maximize their time. Useful online sites can produce dozens of sample rates at once.

2. Ask About Discounts: In the competitive world of vehicle coverage, insurance companies are always looking for ways to outshine their competitors. One common method is to promote unique discounts. It’s common to find reduced rates for being a good driver, good student, insuring multiple vehicles, keeping low annual mileage, packaging home and auto policies, and for insuring a car that is equipped with an antitheft device. Make sure to ask an insurer if they have any discounts that their competitors won’t offer.

3. Avoid Unnecessary Coverage: It’s good to be adequately insured, but buying too much protection can lead to unnecessary expenses. For example, many people are required to carry comprehensive and collision coverage when they buy a new car. Over time, however, this protection becomes less necessary as the car drops in value. For example, a motorist with a $1,000 deductible on a vehicle worth only $2,000 might not benefit very much from this coverage because the amount received from their insurer if the car is totaled might not be worth the increased premium.

4. Choose the Right Payment Plan: Many people choose to use a payment plan when they purchase auto insurance. Insurers will usually allow policyholders to make payments monthly, quarterly, every six months, or to just pay for their policy in full. Although making monthly installments means smaller bills, companies will often include billing and processing fees. Data from Massachusetts regulators show installment fees there can range from $1 to $8, depending on the insurer and whether the payment is processed electronically. While that may not seem like much, over time a vehicle owner could end up paying a lot more money for their plan this way. To cut costs, drivers are urged to consider making fewer installments.

5. Keep a Good Driving Record: One of the most important ways to avoid expensive vehicle coverage is to maintain a clean driving record. Being involved in an accident, filing a claim, or being convicted of a moving violation can quickly lead to surcharges and higher premiums.