By following a handful of simple but prudent steps, drivers can shave off hundreds of dollars from their annual auto insurance bill, according to Bob Hunter, director of insurance for the Consumer Federation of America and former Texas insurance commissioner. Shop around Premiums differ from company to company and calling around for the best rate can save a driver hundreds of dollars each year. In the past, many insurers and agents were reluctant to give out quotes over the phone, let alone write a new policy. Drive carefully A single speeding ticket can make a big difference in your premiums. That's a difference of more than 23 percent.
Traffic accidents are also costly.
A drivers who causes a fender-bender can expect to see his or her premiums increase as much as 40 percent, said Val Keckin, president of the Keckin Group, which coordinates group policies for the Hawaii Carpenters Union. Check out direct sellers Companies like Geico and USAA sell policies directly and not through independent insurance agents. That way, those companies can offer more discounts since they're not paying the traditional 10 percent commission to agents, said Hunter. A deductible is the amount that's paid by the policyholder in cases of auto accidents or damages or theft to a vehicle. It also means a lower premium.