How To Save Money On Your Auto Insurance

There are many ways to save money on auto insurance. Most people know about the common ways, but many still may not ask their insurance company if they offer these discounts, get them applied to their policies to lower their rates, or think about switching to a company that offers more ways to save money on auto insurance. Check out the lists below and see how many of the ways of saving money on insurance apply to you. You might just be surprised.

Methods of Lowering Your Auto Insurance Rates:

Shopping Around. This is the #1 way of saving money on insurance. U.S. auto insurance prices increased by 15 percent in 2002. Are you sure you’re getting the best deal possible with your current insurance company? Many people find it easy to stay with the same company for years, but fail to realize they have the potential to save hundreds of dollars each year by comparing quotes from multiple companies. You should shop around at least twice a year to see if you are getting the best deal possible. Think of what you could do with all that extra money!

Multi-Policy Insurance. Various insurance companies offer various discounts if you insure more than one vehicle on a single policy, or if you have your home insured with the same company that insures your vehicle(s). Industry experts expect the price of insuring both cars and homes to rise by 9-10 percent in 2003. By finding a company that offers a multi-policy discount (especially combined with any of the other discounts shown here), you might be able to help combat these rising prices.

The Higher the Deductible, the Less $ Out of your Pocket? Yes, it’s true; the higher your deductible is, the lower your premium. However, you must be careful not to get in accidents with a higher deductible, as this is the amount that will come out of your pocket before your insurance company starts paying for the rest of the damage to your vehicle. If you find yourself with more financial comfort in the future, you might think of lowering the deductible(s) you raised when you needed to save money.

Check Before Buying. Before you buy a new vehicle, compare insurance quotes. This way you can see how much it will cost to insure (and possibly change your mind if you find a vehicle with a lower rate) and have quotes to return to if you end up buying the vehicle and need to quickly insure it. High profile cars, cars that commonly have parts stolen, and cars that are expensive to fix will cost you more to insure.

Common Discounts

The Good Driver Discount. As most of us know, the better we drive, the better our rates will be. Most insurance companies offer discounts to drivers who have not had accidents or received tickets in the last 3-5 years.

The Safe Vehicle Discount. Many companies offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes.

The Good Student Discount. Students currently enrolled in school often receive a discount on auto insurance for their good grades; as many companies feel conscientious students make conscientious drivers.

The Senior Discount. Many insurance companies offer discounts to drivers over 50.

Low Mileage Discounts. Some insurance companies will offer discounts on vehicles that incur low annual mileage. Many companies have a predetermined number of what they consider low mileage.

The Rural Discount. It is almost always cheaper to insure a vehicle in a rural area. Most accidents happen in larger cities, which means if you are a city-dweller, expect higher rates. This also applies to areas where car theft is most common. Generally, residents of these areas will likely be charged higher rates, which is commensurate with the higher risk.

Other, Lesser Known Auto Insurance Discounts:

The Scientist Discount. Many companies offer discounts to people with certain degrees, such as engineers, scientists, and mathematicians. Historically people in these professions have been less likely to get in accidents.

The Teacher Discount. Likewise, many auto companies offer discounts to certified teachers.

The Military Discount. Numerous companies offer discounts to people in the military, both active and retired.

The Internet Discount. Many insurance companies offer discounts to consumers who sign up for coverage online. Likewise, companies like InsWeb that offer you multiple quotes are able to show the lowest rates available from their various participating carriers for you to insure your vehicle(s).

Auto Club/Professional Organization Membership Discounts. Many carriers offer discounts to people who are members of auto clubs (such as AAA) and other professional organizations.

As some form of minimum liability insurance is required in every state, most people find that auto insurance is one of those purchases you feel stuck with. This is why most people just buy insurance from a company that a close relative or friend suggests or stay with the same policy/company for years. But just because you are stuck with buying auto insurance, it does not mean you are stuck with a certain rate. You may be able to save hundreds of dollars (money you can keep in your pocket), by comparing multiple rates and switching to a new company. Also, you can save money by making sure to get all the applicable discounts. Don’t stay stuck in an auto insurance rut, compare companies and rates and save today!


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