How to Save Money on Car Insurance

How to Save Money on Car Insurance, Even if You Own a Performance Vehicle

Money is tight, so a little research before you buy anything can always save you a few dollars. This is especially true for car insurance, where the savvy shopper can take steps to significantly reduce his car insurance premium. For a performance vehicle, which is automatically considered a higher risk than the family car, the owner can be faced with car insurance rates that are a significant financial burden.

Performance vehicles can be roughly categorized as either stock, such as an out-of-the-box production Ferrari F430 Spider, or modified, like a Honda Civic in which the standard engine has been swapped and turbocharged using a 200 horsepower H22A4- 2.2L DOHC VTEC from a Honda Prelude. The owners of these two vehicles may differ widely in their ability to afford a large insurance premium.

Insurance companies set an individual's car insurance premium according to an insurance rate tier system which factors in as many as 384 parameters. Insurance companies are taking a lot closer look at the type of car you drive to determine your premium. Shopping for a car insurance company which sets rates according to multiple tiers can ultimately save you money.

You can cash in on significant car insurance rate discounts by lowering the risk that you and the type of car you drive represent to your insurer.

• By installing an anti theft device, such as the LoJack System, some insurers will lower your insurance rate by as much as 30%.
• In many states, it is legal for insurers to use your credit rating to determine your rates. Repair any errors on your credit report and pay your credit card bills on time to boost your credit-based insurance score.
• Qualify for a Low Mileage Discount by driving less by using public transit and carpooling.
• Moving violations and other traffic citations will increase your rates. Repair any outstanding infractions on your driving record that can be erased by attending driver safety classes. You may qualify for a Safe Driver Discount.
• Many insurers offer discounts for attending Defensive Driving Classes when not used to erase a traffic citation.
• Installing safety features, such as anti-lock brakes, traction control, airbags, and restraint equipment will lower the risk of injury and lower your insurance rates.
• Your car insurance can be lowered by as much as 10% for every year you drive without an accident, so choose wisely those times when you exercise the "performance" qualities of your vehicle.
• You may qualify for a Good Student Discount if you provide your insurer with a copy of your grades.

Owning, maintaining and operating a performance vehicle can very rewarding and satisfying; with the proper research and preparation, you can obtain affordable car insurance while making yourself a better driver and your performance vehicle safer. As many ways as there are to increase the performance of your vehicle, there are probably as many ways to reduce risk and lower your insurance rates.

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