|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 Car 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 Car Insurance 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
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
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 Car 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!
You can start here to shop for online