The word “cheap” is a word not commonly associated with auto insurance. In these trying times, expensive auto insurance can break your budget. Many people have already found out the hard way that one slip up can make the difference between paying the bills next month, and not being able to afford to pay the bills.
To those of you not feeling the full force of the crumbling economy, there’s still no excuse to throw away money on your auto insurance premiums! If you haven’t updated your policy in the past year, chances are you’re paying too much!
Those with teenagers on their policy, will find these discounts particularly enticing. Young drivers are especially expensive to insure, but luckily we have some money saving tips for insuring teens as well.
There are a bunch of auto insurance discounts available to consumers these days. So many that it would be impossible to list them all here. In many cases all you have to do is ask, in other cases you may need to notify them of steps you are taking to insure your safety. Below is a checklist of discounts that you may apply for, but be sure to notify the auto insurance company you choose, otherwise they will be happy to charge you a regular rate.
Money Saving Auto Insurance Discounts
We’ve grouped these money saving discounts in categories. They’re listed in no particular order, but they all can save you a ton of money on your premiums.
While most new cars come stock with alarm system, many do not, and a lot of old cars didn’t make use of this feature. Alarms will greatly reduce chances that your car will be stolen. If you have comprehensive coverage, this simple task can save you a bundle.
It should be no surprise that a car’s level of safety plays a critical role in how insurance companies calculate your premium.
The more safety features the better. But an even better way to analyze a vehicle’s level is safety is through safety ratings performed by the Insurance Institute for Highway Safety (IIHS) each year, on many of the most popular car models.
Keep in mind that fast and small cars, and many large SUVs will raise your premium, as they have higher safety risks than most other vehicles.
Pay In Advance
If you choose to pay semi-annually or annually (as opposed to paying monthly), most auto insurance companies will offer you a discount for paying more upfront. You can also avoid high down payment charges by doing this as well.
Low Mileage Coverage
If you rarely use your car you may qualify for low-mileage auto insurance. Be sure to notify your auto insurance company if you aren’t a frequent driver. In some states you may even qualify for by-the-mile auto insurance.
Multiple Driver / Group Discounts
If you are looking to insure yourself as well as a family member under the same policy you can usually get a lower rate.
Many organizations and companies offer auto insurance as well. Getting insurance through your job for example can save you hundreds of dollars under a group rate.
Safe Driving Courses
Taking a safe or defensive driving course is very appealing to auto insurance companies. It shows that you are a safer driver, and are genuinely interested in staying safe on the road. You can typically enroll in these courses for a couple hundred dollars, and it will save you much more in the long run. For new drivers many states now require these classes before you can get your drivers license.
Combine Insurance Types
Combining insurance types and policies is a great way to get a discounted rates. Many insurance companies these days offer home, health, and life insurance. If you go through the same company for all these different insurance types you can save a lot of money on each of them.
Insuring teenagers, and new drivers in general, can be extremely expensive. If there is anywhere you should be looking to save on auto insurance, it’s here.
If your teen has a 3.0 grade point average or above, they will be eligible for a discount. Your student’s high GPA is a sign of responsibility, and this is one of many benefits they will receive for being a good student. Even if it’s more of a reward for you anyway!
Driver improvement classes can help too if not already required by the state. But the best way to keep your premiums on the decline is to ensure your kids are good drivers to begin with. Chances are they will learn to drive from you. Teach them well, lead by example, and it will save them thousands of dollars for years to come!
Working With Your Insurance Provider
You would be surprised by the amounts of money you could be saving by simply making your insurance provider’s job easier. This is by far the easiest way to save yourself some cash on your next insurance payment.
To start, choosing a high deductible on your policy will relieve some of the financial stress on the insurance provider’s side. As a result, they won’t expect you to pay more to cover these risks.
Not only is paying monthly a hassle, but it is also going to cost you. Paying semi-annually or annually is much like paying a deposit, but you can get it back! If you choose to switch providers prior to the point you had paid up to, you can usually get a full discount.
Get Discounts By Comparing Quotes
Telling you about all these discounts is one thing, but you need to find a reliable insurance provider to insure you in the first place. The easiest way to safe a bunch of money on your auto insurance is to get as many quotes as possible. Just as if you were shopping around for a new gadget, clothes, or even a new car, prices vary greatly from company to company.
How To Begin
Scroll back up to the top of this page and enter your zip code in the form above to begin comparing rates. You will then be connected with the top insurance companies who will all be fighting for your business. By doing this, you can compare quotes from multiple providers in hopes of finding the cheapest premium prices. Ask them about the many discounts you qualify for, and then choose the company with the cheapest rates. This is the top way to save!