Auto insurance is something you hope you never need and just can’t afford to live without. It protects you from unexpected costs caused by accidents, theft or natural disasters. For many drivers, however, the cost of auto insurance premium is a major concern. The good news? You don't have to skimp on coverage or compromise on value in order to save money. By thinking strategically and understanding how insurance companies determine your rates, you can save money on your premium and still keep your coverage intact.

Here’s your smart driver’s guide to saving more without losing your peace of mind.

1. Keep a Clean Driving History

This may seem self-explanatory, but this is the single most important factor in determining your premium. Drivers who have not been involved in accidents or have received speeding tickets or DUIs are considered to be low-risk drivers, and THAT is something all insurance companies can agree on.

Tip: Many major insurance companies will offer a “safe driver discount” for keeping a clean driving history for 3–5 years. We also suggest installing a telematics device (or using your insurance company’s app that records safe driving behavior) for another possible discount.

2. Bundle Your Policies

If you own a home and a car, you may be able to save money by bundling your home and auto insurance with the same company. This is a simple way to decrease the premiums without losing any coverage. Sierra Mountain Insurance works with multiple national carriers that offer policies and bundle options, as well as various ways to lower premiums while keeping you covered.

3. Adjust Your Deductible

The deductible is your out-of-pocket costs before your insurance starts. For example, if you can comfortably increase your deductible from $500 to $1,000, your premium may decrease 10-15% or even more. Just be sure to set aside the deductible amount just in case.

4. Watch Your Credit Score

You may be surprised to learn that your credit score can affect your insurance premium. Insurance being one of them, they recognize it as a measure of how likely you will make a claim. Good practices and consistent payment practices help keep your credit score strong; keep your debt low, and check your credit report. This can also qualify you for better rates. 5. Select the Right Vehicle for You

Insurance premiums are determined in part by the vehicle you own.

Often, luxury cars, sports cars or cars that perform at a higher level are going to cost more to insure because of increased repair costs and theft risk. When you are shopping for a new car, to help lower your premiums look for a vehicle with a high safety rating, anti-theft system, and that costs less to repair  all of which will lower your insurance premiums.

6. Ask About Discounts You Might Not Know Exist

The majority of drivers do not realize the number of discounts that may also be available.

You could save some money if you qualify for:

Low mileage discounts—if you drive less than the average number of miles per year.

An anti-theft or GPS tracking system.

A defensive driving course.

If you belong to a professional organization or alumni association.

Ask your insurance agent to review all discounts available; it is always a good idea to see if you can save more than you already are.

7. Review and Update Your Policy Frequently

As your life changes your insurance needs might also change. If you are driving less than average miles per year, moved to a safer neighborhood, or paid off your car loan, then you could have a lowered insurance premium. Annual reviews will help you ensure that you are not paying for coverage you may not need anymore. At Sierra Mountain Insurance we help our clients stay current so that you do not overpay or have a coverage gap on your renewal policy.

The Essential Facts

Saving on auto insurance doesn't mean skimping. It means being wise.

Being informed, being a good driver, and working with an knowledgeable insurance partner, will give you top-quality protection while staying within your budget. Sierra Mountain Insurance has professional market comparers paired with top-rated carriers to find the most affordable rates you can get without sacrificing quality coverage.

Because a good driver is a good planner.