With the global economic crisis the way it is today, everybody is trying to cut costs and save wherever they can. One of the first things people do when they are tightening their buckles in a bid to save money is to cut out their auto insurance. Auto insurance is the first thing to go because people unconsciously feel that their need for the extra cash is more than their need for security at that moment. I think we can all agree that when you have a pressing need to pay other bills auto insurance can seem like a luxury. This seems like a logical thing to do, however what people do not realise is that it is in times like these when they need insurance the most, because if anything should happen to them, such as a car accident, or damages to ones car-where will they find that lump sum of cash to pay for repairs?

If you need your car to get around and cannot imagine life without your car then do not cancel your auto insurance, instead find out ways to lower you premiums, so that you can save money and be secure at the same time. These are some auto insurance saving suggestions.

Do you drive your car often? Do you drive your car every day for many kilometres? If the answer is no, and you only drive your car a few times a week, or for short distances then you can get a discount on your auto insurance rate. There are many auto insurance companies which offer a pay as you drive system, which in essence means that they tally up the amount of mileage your car has periodically and you pay according to the amount of kilometres you have driven. This is the perfect solution for people who only use their auto’s over the weekends or to drive short distances. By taking public transport to work, or by getting a lift to work you can save on insurance premiums. Ask you insurance company about this, and if they do not offer this product, look for another auto insurance company that does.

Another way to lower your premiums is to raise your excess amount on your auto insurance. The excess is the amount of money to be paid by you in the event of an accident or damages. When your excess is low it means that the auto insurance company is liable to pay more money in the event of an accident, and therefore you pay more in monthly premiums. If you are a safe driver and have not had any accidents or have a good driving record, then raise your excess and your will lower your premiums.

These are just two of the ways of which you can lower your auto insurance premiums, but there are many other ways in which to do it. Do some research on the net as there are many articles which will give you great tips on lowering auto insurance premiums. Remember that if you are in a financial strap that you can pay less auto insurance while still being covered.

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