There are plenty of different discounts offered by auto insurance providers to help you save a few dollars on your insurance coverage. For example, at this point, most people know that you can score a discount by choosing to bundle your home and auto insurance. However, if you are looking to take your savings to the next level, you will need to get a little more creative. Thankfully, the tips below can help you to accomplish this goal by teaching you to spend smarter rather than just spending more.

Take Advantage Of Rewards Offered By Your Credit Card Company

As it turns out, reducing the premium on your auto insurance policy is not the only way to save money on your insurance needs. Even after you have maxed out your potential savings on your policy itself, it is possible to continue saving by taking advantage of cashback rewards offered by your credit card company. Best of all, the only thing you need to do in order to enjoy these additional savings is to simply pay your car insurance bill using a credit card that offers either cash back on purchases or some other form of rewards for your purchase. 

If you currently have a credit card that is offering a no-interest introductory period, you can bump your savings up even more by using this card to pay for your insurance policy in full rather than paying for your policy in monthly installments. Making one annual payment will typically qualify you for a discount that is right around the same amount as one of your monthly payments. You will then be able to make monthly payments to your credit card company instead.

Don't Be Scared Of Higher Deductibles

While you want to ensure that your auto insurance provides ample coverage to protect you against large out-of-pocket expenses in the event of an accident, you also want to minimize how much money you are spending on a product that you hope to never actually use. Higher deductible policies are a great way of balancing these two desires. 

Higher deductible policies help insurance companies to minimize their risk by making sure that you will not be filing a bunch of small claims for minor damage to your vehicle since the deductible you will be responsible for paying is likely to be more than the actual payout when making claims for minor damage. Consequently, auto insurance providers are typically motivated to offer rather substantial discounts on these higher deductible policies. These discounts can really work to your advantage. To demonstrate how this works, consider the following example.

Imagine a standard insurance policy with a $500 deductible is going to cost you $100 a month. A policy with the exact same coverage options but a $1,000 deductible can be purchased for $50 a month. This is a savings of $600 each year. If you don't get into any accidents during the course of the year, you have saved $600 on your auto insurance. However, if you are involved in an accident and need to file a claim, you will need to spend the extra $500 to cover your now $1,000 deductible. Even when all is said and done, you have still saved $100 on your auto insurance. Either way, you still come out ahead.