How to Find Car Insurance Discounts

by MarketProSecure

It makes sense to save money wherever you can, and this applies to car insurance as much as anything else. You should not simply rely on your insurance agent to find the best deal for you. Check the market yourself as well.

Many insurance providers offer various discounts on their policies and you should take advantage of any that might apply to you. This can significantly reduce your car insurance costs.

Read the following to identify possible discount areas that could help you save money on car insurance right now.

Car Safety Features

Discounts are given for car safety features. In some states you can get discounts for having anti-lock brakes. Make sure you know if yours is a two or four-wheel anti-lock braked vehicle. Automatic seatbelts and airbags are frequently discounted on insurance premiums. In most states, a defensive driver class discount may apply. It can pay to take a defensive driving course and make you a better, safer driver.

If the principal driver, usually having reached age 55 years or older has completed an approved defensive driving class a discount could apply. In most states though, the discount will only apply if the defensive driving course has been taken voluntarily, and not as part of a court imposed sanction arising from road traffic violations.

Multiple Cars Discount

Some insurers will give you a discount for having multiple cars. In many cases this will only apply if you have two or more drivers insured. If you have a clean driving record, meaning you have not had any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver's discount.

Loyalty and Previous Auto Insurances

Many insurance companies will give a loyalty discount where you have been with them for several years without any accident claims. Check to find out if you are eligible.

Some companies will reward you with a discount if you previously had limits on your policy and have demonstrated you are now a better risk. If you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer for this proof to be valid.

Specific Lifestage Discounts

If you are a full-time student meeting certain grade requirements, are unmarried and usually less than 25 years of age (in some states the age is 21) you could be eligible for a good student discount.

If you own a home, and this includes condominium, town home, or mobile home, which is used as a principal residence, a discount could apply.

For military personnel, whether currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

Other Ways to Lower Your Car Insurance Cost

For people who own older cars, it may not be necessary or cost-effective to protect them with comprehensive coverage. If the car is worth less than $2,000, you could probably spend more insuring it than it is worth. Make sure you are insured to a level that meets legal requirements, generally known as third party protection, but beyond that use your discretion taking the value of your vehicle as a guide.

The type of vehicle you buy will of course affect your insurance premium. A sports car is going to cost more to insure than a mid-sized sedan, and a car that features on the 'most stolen' list is also going to be more expensive to insure than one that does not.

The other way to save on car insurance is to assume more risk yourself. If you choose a higher deductible on personal injury protection, comprehensive or collision coverage, you will attract a lower premium. Don't forget you will have to meet the full deductible that applies before your insurer begins to pay out in the event of an accident. Make sure you are ready to accept the risk and can afford to meet the cost of the deductible.

Conclusion

There are several ways in which policyholders can save on their insurance. Learning more about auto policies and premiums can help drivers take advantage of less obvious discounts to save money while ensuring that they have the appropriate protection for their vehicles.

Published: November 23, 2007

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