The first article in this series identified routine costs for car owners: i.e. fuel, repairs and auto insurance. While many consumers have found ways to save on fuel and repairs, many struggle with how to reduce their insurance premiums. In Creative ways to reduce your auto insurance: Part 1, consumers were given four ideas on how they could reduce their auto insurance premium: i.e. comparing insurance costs per vehicle type, comparing insurance quotes (three is recommended), purchasing multiple insurance policies from the same insurer and seeing if they qualify for a low mileage discount.

This article will provide five additional suggestions that may help consumers reduce their annual auto insurance premium:

• Consider higher deductibles: By choosing a higher deductible, you can reduce your collision and comprehensive coverage. However, keep in mind that the deductible is your out-of-pocket expense that you must pay before your insurance policy begins paying. If you choose this option, be sure that you have money set aside for a claim, should you need it.

Tip: For ideas on how to save money, reduce spending and fulfill financial goals, visit MI Money Health for a variety of financial resources, including how to develop a monthly budget.

• Consider reducing insurance coverage on older vehicles: Dropping collision or comprehensive coverage on older vehicles can reduce annual insurance premiums. The Insurance Information Institute suggests that if an older vehicle’s worth is less than 10 times the premium, then collision and or comprehensive coverage may not be worth it. To find out the value of a vehicle consult Kelly’s Blue Book, or check with auto dealers or banks in your area.

Tip: As with all insurance policies, be sure to re-assess your coverage needs at policy renewal time.

• Maintain good credit: A positive credit history has many benefits. Not only can it help with employability, renting, and being approved for additional types of credit (i.e. auto loans and a mortgage) it can also help to reduce auto insurance premiums. The Insurance Information Institute shares that people who effectively manage their credit have fewer claims. To protect or repair your credit, pay bills on time, don’t take on more credit than you need, obtain a free copy of your credit report annually from each credit bureau at www.annualcreditreport.com, and correct any identified errors promptly.

• Consider group insurance: Some insurance companies will offer discounts/reductions to consumers who get their auto insurance coverage through group plans: i.e. from an employer, professional or alumni association, or from other groups. Be sure to check with your employer or any group that you are affiliated with to see if this is offered.

• Ask about other auto insurance discounts: Some companies may offer additional discounts, for example: for antitheft devices, driver’s education or defensive driving course, good driving record, etc. For additional discount ideas visit usa.gov.

Michigan State University Extension offers money management and homeownership classes. For more information about classes offered in your area visit, MI Money Health.