5 Obscure Ways to Lower Your Car Insurance

Source: Thinkstock

Source: Thinkstock

The Census Bureau indicates that roughly 8 percent of drivers were involved in an accident during the most recently reported year, resulting in over 5 million police reported car crashes. Often, car accidents are complicated. Did they really have the right of way? Whose fault is it? The auto insurance company is a third party to enter the picture, act on your behalf, and aid in the determination of any monetary payments.

An absolute necessity, car insurance can get expensive. An Insure.com report states that the average annual car insurance premium ranges from $926 for residents of Ohio to $2,551 for Michigan residents, with the average premiums in other states falling in between that range. Location plays a large role in how much you pay for auto insurance. Other factors, such as age, marital status, and driving record all impact how much you have to come out of pocket for car insurance. Also, good credit and a clean driving record will generally lead to a lower premium. You may be surprised, however, by some of the factors that play into the determination of your insurance cost.

1. Payment — Up Front and Paperless Discounts

When you pay your entire premium up front, you save a substantial amount of money. According to a publication by Cars Direct, insurance companies add on fees of up to $10 per month when you make monthly payments on your policy, which can add up to $120 per year. Also, some providers will offer additional discounts when you opt for paperless billing and pay your bill through electronic funds transfer.