If you drive an old car that's fully paid for, it might not make sense to pay for optionals such as collision coverage or comprehensive coverage, which insures vehicles in case of flood, fire or theft. If your car is totaled in an accident, the insurance companies will pay for what the car's worth, not how much it's insure for. For newer cars, a deductible for collision coverage could save consumers considerable money over the long term. While it's convenient to let your insurance company pay for small fender benders that you may have caused, those types of accidents add up add in premiums you have to pay over time. Look for other discounts Some companies like AIG Hawaii Insurance Co. and TIG Insurance Co. specialize in offering group discounts to members of organizations like labor unions and credit unions.
Some insurers also offer military families a special discounts.
Families with good driving records and those with two or more cars also are eligible for discounts with some insurers while teenage drivers can qualify for good-student discounts with some insurers, according to State Farm Insurance Co. Know your car Obviously, it's going to costs much more to insure a Mercedes or a BMW than a Ford Escort. But premiums also are higher for models that are costly to repair, frequently stolen or offer less crash protection, State Farm said. If you buy a Porsche, don't be surprised when you have to pay a lot for insurance. This covers medical costs and wage losses for the driver, a car's occupants and pedestrians who are hurt in a traffic accident, regardless of who caused the accident.