Auto insurance is a necessary means to protect yourself from the financial consequences of car accidents and other damage to your vehicle. Many of us may get our quote and take it for granted that “it is what it is” without exploring any additional savings opportunities. But have you received all the discounts that you qualify for? Do you know all of the ways that you can save a few dollars on your auto insurance premiums?
Here are some tips for saving money on your auto insurance:
- Shop around for the best rates. We can help you get quotes from multiple insurance carriers to make sure you are getting the best rates available. In addition, by working with us you can make sure that you are comparing “apples to applies” across carriers. While one policy may seem less expensive, you need to know that it is for comparable coverage.
- Bundle your policies with one carrier. If you can, you should bundle your homeowners, car, and personal umbrella insurance with the same insurance carrier. Most insurance companies offer significant discounts if you have your auto and home insurance policies with them. And the more policies you have (boat, motorcycle, personal umbrella, etc.) the greater your discount will be. Multi-policy discounts usually apply even if you have some violations on your driving record—giving those with somewhat higher rates an opportunity for some savings. And don’t forget that having all of your personal insurance policies with one insurer will make service and other transactions much easier.
- Maximize your discounts. Insurance companies usually offer a wide variety of discounts so there is usually some type of savings opportunity for everyone. We will work with you to identify and ensure that you receive any discounts that you are eligible for, such as safe driving discounts, low-mileage discounts, teen driver discounts, security discounts, and more.
- Keep your driving record clean. Traffic violations have a negative impact on your insurance rates. Avoiding tickets and accidents will keep your rates down, and many insurance companies offer additional discounts for people with clean driving records. If you do get a ticket or have a violation on your record, consider attending a driver safety course. Taking such a course could help you reduce your insurance rates.
- Choose a higher deductible. Auto insurance deductibles and premiums have an inverse relationship: the higher the deductible the lower the premium. If you think you will have enough cash to cover your deductible should you have to file a claim, then consider a higher deductible to keep your regular premium payment down.
More About Discounts
Some of the most common auto insurance discounts that you might qualify for include:
- Multi-policy discount
- Multi-vehicle discount
- Anti-theft of security discount
- Anti-lock brakes discount
- Passive restraint discount
- Safe driver discount
- “Green” discount
- Low mileage discount
- Good student discount
In addition, there are several less common but equally beneficial auto insurance discounts that you could qualify for. These include:
- Low mileage discount: This discount is for drivers who drive a minimal number of miles every year. Typically, someone who drives between 7,500 and 15,000 miles per year could be eligible for a low mileage discount.
- Paid-in-full discount: Insurance companies often award a small discount (e.g., 5%) for customers who pay their auto insurance premium in one lump sum at the beginning of the policy period.
- Good credit discount: Insurance companies look favorably upon customers with good credit, and many offer premium discounts for those with a good credit score.
- Preferred occupation/affinity discounts: Some insurance companies offer discounts for people who are engaged in certain occupations or who are members of certain groups. For example, preferred occupation discounts might be available for police officers, firefighters, doctors, dentists, nurses or teachers. In addition, affinity discounts may be available for people who belong to certain unions and even certain fraternities or other organizations.
We are familiar with all of the auto insurance discounts offered by the insurance companies that we work with. We will get to know you and make sure that you receive the discounts that you are eligible for, and we will counsel you on the best ways to save money on your auto insurance rates every year.
What have you done to save money on your auto insurance? Were you aware of all of these discounts?