Car insurance can be a significant drag on your finances over time. Moreover, rates are rising as part of the general economic recession, with average premiums for drivers over $1,000 a year for basic coverage. There are some ways in which you can reduce your premiums to find a more affordable deal. Here are five ways to save money on car insurance.

1. Pay Upfront

You can receive lower premiums on your car insurance by choosing to pay for it upfront for a year, rather than monthly. Paying monthly insurance premiums means having to pay interest, which will gradually add to the overall cost of your cover. Missed payments can also cause problems with the insurer. Many insurance companies also offer discounts for upfront payments. Other options include making quarterly and semi-annual payments, which will generate some smaller discounts.

2. Increase your Deductibles

Your deductible is what you agree to pay towards damages when you’re at fault, with the insurer covering the rest. Increasing your deductible means you will pay more towards repairs, but it means a lower insurance premium. Keep in mind that if another driver is at fault, you won’t be paying a deductible to have your car fixed.

3. Invest in Safety Features

Insurers are often willing to lower premiums if drivers demonstrate a commitment to safety that goes beyond standard features. Some of these features include installing a black box to monitor your driving, or enhancing security features within your car. While most cars now come with these fitted, it’s worth investing if possible in anti lock brakes, anti sleep alarms, and electronic stability control, as well as tyre pressure monitoring.

4. Understand Your “No Claims” Discount

A “no claims” discount is the amount you get removed from your insurance cover if you don’t make a claim. Discounts can add up from 20-75% over five years. However, once the insurance expires, you will not continue to get a no claims bonus. It can be lost through minor damage, unless you can prove that you weren’t at fault. In addition, it’s worth paying for minor damage and repairs to preserve your no claims discount. Drivers can also invest in no claims discount protection in the event of minor accidents that might invalidate the discount.

5. Choose the Right Car

Driving a car that attracts attention is the biggest way to increase your car insurance costs. Instead of buying that new convertible or coupe sedan, look into a safer, more reliable car. Cars that are slightly used will get better insurance rates than a brand new car. Shop for insurance quotes BEFORE shopping for cars so you don’t get into a model that requires high insurance premiums.