How to Obtain a Discount on Car Insurance

Obtaining auto insurance is a necessary and sometimes expensive endeavor. Many factors can affect your insurance rates, including your driving record, the type of automobile you own, and the kind of insurance that you select. There are ways to make sure you are getting the best rate possible.

The old adage goes, “In life, there are two things you can’t avoid: death and taxes.” Well, insurance should probably be added to that list, as well. If you spend a large sum on an automobile, it only makes sense that you have sufficient insurance coverage to cover any damages. Even though insurance is necessary, the expense can be burdensome, especially in places that require a minimum amount of insurance. There are still ways you can save, even if you live in a place where insurance is expensive.

Be Sure to Bundle

Bundling policies are a sure way to save some extra money. Most insurance companies will offer some type of bundle, such as combining auto and home policies. Buying the policies together and from the same company can often result in significant savings over buying separate policies from different insurers. In addition, you can often combine policies with family members in the same household. This can be especially cost-effective if you have teenagers at home who are about to become insured drivers.

Obtain a Loyalty Discount

Insurance companies like loyal customers, and sometimes you can leverage this loyalty. Ask for any discounts for renewing your policies. Sometimes companies will give a percentage off to ensure that sure you stay with them as long as possible. If the company hesitates or says no, you can always test the waters with a new company and see if you can save by switching.

Adjust Your Deductible

The deductible is the amount of money that the insured has to pay before an insurance company begins to pay the costs. The deductible can be adjusted on any auto insurance or homeowners insurance policy. Deciding on the amount of the deductible can greatly affect how much you are paying for your auto or home. Depending on the initial cost of your vehicle, you may want a high deductible or a low one. An expensive automobile will incur higher costs, and it might be wise to have a lower deductible so the insurance company will bear the brunt of the expenses. A homeowners insurance policy may have a similar deductible, and you will have to figure out how much of the upfront costs you can afford and adjust your deductible accordingly.

Change Your Coverage

An older car versus a new car requires a different amount of insurance protection. If your car is just limping along, you won’t want expensive insurance because the insurance company probably won’t pay to fix the car if there is extensive damage. So to save money and lower your monthly premium, you can reduce the limits on your plan. Be cautious, though. You want to make sure that you have the insurance you need based on your driving habits and the type of car you own, while remaining comfortable with the premium you pay.

Stay Safe on the Road

Another way you can obtain a discount is by making sure that you are very careful while driving and don’t drive long distances. Car usage, meaning the number of miles driven, can often affect how much you pay for insurance. In addition to limiting the number of miles driven, driving carefully can make a huge difference in the discounts you receive. Speeding tickets, multiple traffic incidents, and the like, can cause your insurance to skyrocket, and remember that includes all named insured members on your account. So watch those new drivers carefully and make sure they are staying safe on the road.

Maintain Good Grades in School

Another lesser-known way to get a percentage off of your insurance is by maintaining good grades. Many insurance companies will offer a deal on your insurance if your child has good grades. What is considered “good” can vary between different companies, but it’s important to ask your insurance agent if they offer these kinds of incentives.

More Savings

Some other options that might help you save money on your insurance are items you can discuss with your agent:

· Anti-Theft Devices — Alarms and Security Features

· Your Employer, Such As the Federal Government

· Electric and Hybrid Vehicle Savings

All of these different options can result in savings on your insurance, so it’s worth asking or doing your research.

Saving on insurance can end up putting hundreds of dollars back in your pocket every month. Over the course of your life, this can add up to thousands of dollars in savings. If you don’t know, just ask for any price reduction options.