When shopping for a new auto insurance policy, or your first auto insurance policy for that matter, it is in your best interest to take advantage of all the discounts you can. You already have the fact that the auto insurance companies are fighting for your business working for you. But there is much more one can do to get the appropriate coverage at a low discounted rate. Continue reading below to get a better idea on the discounts available on your current policy, additional discounts you might have never thought about, and additional ways you can save on your auto insurance.
Getting Discounts On Your Auto Insurance Policy
The most obvious way to save on your auto insurance is to get just enough coverage. Many people are paying ridiculous premiums to insure cars that are worth far less what their policy covers. By only paying for what you need, you can get a low rate without any special tricks, just responsible budgeting.
Our choice of cars and lifestyles can have a great effect on what we have to pay for auto insurance. The most straightforward way to get discounts on your auto insurance is to drive safely. There may be auto insurance companies that claim to overlook your driving record. This may get you a slight discount, but the people with clean driving records are getting the best rate out there. Having a safe vehicle doesn’t hurt either.
You can also get some great discounts on your auto insurance by reducing the amount of driving you do. Additionally, carpooling and shorter commutes can greatly reduce your rate because your chances of being in an accident are also greatly reduced. Public transportation is also a viable option for cutting down on the time you spend in the car.
Age, Residence, Marriage, And Other Discounts
If you are under the age of 25, and looking for car insurance, I’ll warn you now; You’re probably going to be paying more than almost any other age group, especially if you’re male (as women pay less for auto insurance). Luckily, many people in this age group still have the time to attend school. Simply attending school can get you discounts, and getting good grades will only multiply the savings.
A permanent residence of multiple years, having a spouse, and being in the military will also provide you with some auto insurance savings.
Consolidating all your insurance needs to one company is not just a way to save on your auto and other types of insurance, but it will also make your life a whole lot easier when it comes time to pay the bills. Doing so will allow you to make one easy payment, instead of sending out checks to each individual company. Getting your insurance from a single provider will get you a bulk discount of sorts. Insuring multiple cars can help you save on your auto insurance as well.
Bundle Insurance Policies Together to Save Money
Bundling is one of the easiest and most effective ways to save money on car insurance. Most insurance companies will give you a significant discount by bundling multiple insurance policies together.
You can take advantage of bundling discounts by bundling two or more auto insurance policies together. If you recently moved in with your partner, for example, then you might choose to use the same insurance policy. Insurance companies will give you a discount of 10% to 20% for bundling multiple car insurance policies together.
Alternatively, many insurance companies offer other insurance products – like homeowner’s insurance and life insurance. You may be able to get a significant discount by bundling multiple insurance policies together. After all, the insurance company wants more of your business – and they’ll give you a significant discount to get that business.
Buy Additional Safety or Security Features
Many insurance companies offer discounts based on the safety or security features within your vehicle. The insurance company might give discounts to vehicles with anti-lock brakes, for example. Some of the equipment-related discounts offered by insurance companies include:
- Anti-lock brakes (ABS)
- Anti-theft devices
- Green or hybrid vehicles
- Side and passenger airbags
- Additional safety or restraint features
The more safety features your car has, the safer you and your passengers will be. The more security features you add, the less likely your car is to be stolen. Ultimately, a car with anti-lock brakes can get a discount as high as 10% over a car with no ABS system.
Take a Driver Education Course
This is one of the best ways for drivers under the age of 25 to save money. Many car insurance companies offer savings of 10% to 15% for young drivers who have completed a driver safety course. This discount may also be available for older drivers.
A driver safety course isn’t just a stamp for your insurance company: you’ll also learn valuable information about preventing an accident and staying safe on the road.
Pay for Insurance Upfront
Your insurance policy is a 6-month or a 12-month policy. However, many drivers pay their policies on a monthly basis. When you pay for car insurance monthly, you’re effectively getting a loan from your car insurance company. Your car insurance company will charge you a small amount – say, 5% to 15% – for lending this amount to you. That means you can save 5% to 15% by paying for your car insurance once every 6 or 12 months. If you can afford a single large lump sum payment instead of 6 or 12 smaller payments, then annual or semi-annual payments are the cheapest option. It’s usually always cheaper to pay for your policy in advance.
Compare Quotes Frequently as Circumstances Change
Ideally, you’ll compare insurance quotes every 6 to 12 months. Your life changes regularly. Maybe you got married since the last time you compared insurance quotes. Married drivers get a discount on car insurance. Maybe you moved to a state with cheaper car insurance. Maybe you got a job with the military or the US government. That’s another discount.
Put simply, there are so many discounts available that it’s hard to keep track. Compare quotes frequently and make sure you don’t miss a good discount.
Additional Ways To Save On Your Auto Insurance
As you can see, there are many auto insurance discounts available to us. They just require a little extra attention, smart lifestyle choices, and some time spent shopping around for a deal.
If you are ready to begin finding cheap auto insurance rates, please scroll back up to the top of this page and enter your zip code. After filling out a form (no personal information will be needed), you will be connected with the top auto insurance companies.