UPDATED: Mar 26, 2020
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When shopping for a new auto insurance policy, it is in your best interest to take advantage of all possible discounts. The good news is that auto insurance companies are fighting for your business, which works in your favor. However, there are also things you can do to get the appropriate coverage at a low rate. This article will explain how to get discounts on your current policy, lifestyle factors that can give you additional discounts, and several strategies to help ensure that your auto insurance company continues to provide you with the best rate.
Getting Discounts On Your Current Auto Insurance Policy
The most obvious way to reduce the cost of your auto insurance is to get just enough coverage. Many people pay ridiculous premiums to insure cars that are worth far less than what their policy covers. By buying a plan that only covers what you need, you can get a lower rate. Your budget will thank you.
You can also get some great discounts on your auto insurance by reducing the amount of driving you do. Anything that decreases the amount of time your car is on the road, such as carpooling, using public transportation, or shortening your commute, can significantly lessen your rate because your chance of being in an accident is proportional to the amount of time you drive.
Additionally, many insurance companies offer discounts based on the safety or security features of your vehicle. 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, and the more security features you add, the less likely your car is to be stolen. Insurance companies reward you for having a safer vehicle with lower premiums.
Lastly, most insurance policies are contracts for either 6 or 12 months. However, if you are paying for your insurance monthly, you’re effectively getting a loan from your car insurance company. This means they’re charging you a small amount, usually between 5% to 15%, for lending the remainder of the balance to you. If you can afford a single, large payment instead of 6 or 12 smaller payments, then annual or semiannual payments are the best choice in terms of price.
Change Your Life, Change Your Auto Insurance Premiums
If you are under the age of 25 and looking for car insurance, you will pay more for it than almost any other age group, especially if you’re male, as women pay less for auto insurance. Thankfully, many car insurance companies offer savings of 10-15% for young drivers who have completed a driver safety course. Attending a driving school can get you discounts, and getting good grades will only multiply the savings. Living in a city with short commutes can definitely lower your auto insurance premiums, too.
You should also be aware that there are life events that can also cause your insurance to decrease. For instance, getting married, being in the military, and owning a house for several years, can provide auto insurance savings. If you have any major life events, consider calling your auto insurance to see if you can get a lower rate.
As you can see, your lifestyle can significantly affect what you have to pay for auto insurance. However, the most straightforward way to get less expensive auto insurance is to drive safely. While some auto insurance companies claim to overlook your driving record, people with clean driving records always get better rates.
Bundle Insurance Policies Together to Save Money
Another way to reduce costs is by buying all of your insurance from one company. This is known as bundling, and it is one of the easiest and most effective ways to save money. Getting your insurance from a single provider will get you a bulk discount.
Using a single provider to insure multiple cars or to insure multiple things, like your house and car, will usually result in getting a significant discount. If you recently moved in with your partner, for example, then you might choose to use the same insurance policy for both of your cars, which could provide savings of 10% to 20%. Alternatively, many insurance companies offer other products, like homeowners and life insurance. After all, the insurance company wants more of your business, and they’ll give you a significant discount to get that business.
However, this is not just a way to save money. By buying all your insurance from the same company, you can make your life a whole lot easier by making one easy payment, instead of needing to remember to pay each individual company.
Compare Quotes Frequently as Circumstances Change
The second strategy is to compare insurance quotes every 6 to 12 months. Your life changes regularly, and you need to update your car insurance to match. Put simply, there are so many discounts available that it’s hard to keep track. Comparing quotes frequently makes sure you don’t miss a good discount.
As you can see, there are many auto insurance discounts available. They require a little extra attention, smart lifestyle choices, and some time spent shopping around for a deal. If you are ready to find a cheap auto insurance rate, please scroll back up to the top of this page and enter your zip code. After filling out a brief form that doesn’t ask for your personal information, we will connect you with the top auto insurance companies in your area.