How to save on auto insurance

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There are several
easy ways to save money with auto insurance. Your current insurance company may
have pointed out some of the discounts that you might benefit from, but at the
end of the day it’s up to you to know your options and ask what they have and
what you qualify for
.
 
Insurance rates are
based on a number of factors, but there are also many ways you can lower your
rates. The programs are described below. Be aware that not all insurers offer
these discounts or rebates and that some state laws prohibit their application.
Everything is mentioned for 2 main reasons: knowledge is power and it doesn’t
hurt to ask the insurer
.
 

Professional discount

 
Insurance companies
pay attention to occupations that tend to mean less driving and less risk
taking, as this translates into fewer accidents. If you work in any of these
professions, you could save money. Some of the eligible professions are police,
firefighters, physicians, dentists, registered nurses, teachers, engineers and scientists
.
If you are a current
or former member of the armed forces, or if you are a student participating in
a commissioning program such as ROTC, you may be entitled to certain savings.
For insurers that cater specifically to the military, there are additional
factors that can help lower premiums, such as your rank, whether or not your
vehicle is parked in a base garage and whether your automobile is stored during
deployment or outside your home
.
 
In addition, some
employee auto insurance discounts result from business relationships your
insurer has with other companies. Being an employee of one of these companies
could mean savings for you
.
In general, it’s a
good idea to check with all of the organizations you belong to and find out
what discounts (if any) they have given and with which companies
.
 

Credit score

 
Have you checked your
credit score recently? The vast majority of insurance companies take credit
scores into account these days, and a high score could help cut your auto
premiums in half. The specific odds that trigger discounts are a well-kept
secret, but industry sources claim that someone with a score above 700 will be
more eligible for lower bonuses than someone with a score within 500
.
 

Affiliations

 
Insurance companies
sometimes offer discounts because of their sponsorship relationships. The
relationship could be with a sorority or fraternity, professional association
or university, to name a few. Whether you are a student or a former student,
you can benefit from a reduction
.
 

Go green

 
It is common practice
nowadays for businesses to offer the option of going green by opting for the
reduction of paper statements. What you may not know is that your insurer may
reward you with a discount for choosing this option
.
 

Mileage

 
Most people know that
reducing the number of kilometers driven annually will result in savings on
your insurance bill. Some companies also offer discounts of up to 10% if you go
green while driving a fuel efficient hybrid vehicle. It’s not that hybrid cars
are safer, insurance experts say; it’s that people who go out of their way to
buy them and drive them are considered a better risk
.
 

Security and
protection

 
You may already know
that safety features like air bags or anti-lock brakes can lower your premiums.
But you may not realize that you can save money on the entire portion of your
insurance by installing anti-theft measures, including: car alarms; fuel or
ignition cut-off switches; stolen car tracking systems such as LoJack; and VIN
engravings, or engravings of your vehicle identification number on your
windshield and windows
.
 
Taking defensive
driving lessons is another way to get a discount on your auto insurance rates.
This can represent up to ten percent off your premium. Not only that, you might
end up not only learning some important defensive driving techniques to protect
yourself and your passengers, but you might also end up saving yourself some
money.

Loyalty

 
Some auto insurers
reward loyalty. Nationwide offers customers who have been with the company for
at least five years a 15% discount, or 5% if they have been with them for three
years
.
 

Good marks

 
If you fall into the
category that your provider defines as eligible for the “student discount
voucher”, you can save money on your auto insurance. In fact, companies often
offer discounts greater than ten percent. This is based on the theory that good
students are better drivers. Usually, the discount only applies to full-time
students. Qualifications vary, but the reduction usually applies to high school
and college students. The savings can be 10-25%
.
 

Company for two

 
It might not make
sense to you, but premiums can drop when you get married, as statistics from
insurance companies show paired drivers tend to be safer than those who are
free and fancy. . Some insurers will even extend the reduction to unmarried
same-sex couples
Other unmarried
couples can insure their vehicles together for a multicar discount, which
almost all providers offer. Or, if you own a property together and have home
insurance, there is usually a bundle discount for insuring your car with the
same company
.
Whether you are
married or single, do your research before renewing a car policy to make sure
you get all the discounts possible
.
 

Grouped discount

 
If you buy multiple
types of insurance from the same provider, you can often save money. For
example, if you get your life insurance, auto insurance, and home insurance
from the same company, they may offer you discounts on each of them. With most
businesses, the more types of insurance you group together, the more you save
on the price of buying them all separately
.
Discount on payment
method
Many insurance
companies offer a discount if you set up some form of automated payment. Most
of these discounts are cumulative, so if you have a lot of them you might be
able to really save
.

Multiple car discount

 
Just like bundling,
insuring more than one car will entitle you to a multiple car discount. The
make, model and year of vehicles, number of vehicles and other factors are
taken into account, but the savings can be significant
.
Save money with Pay
as You Drive insurance
This increasingly
popular new type of insurance can be based on specific mileage that you and the
insurer agree to, the time you spend in your automobile, verified odometer
readings, or installed technology, such as GPS
.
While considerable
savings can be made with this type of insurance, it is important to adhere to
the mileage restrictions agreed to with the insurance company. Violations can
be costly
.
 

Conclusion

 
There are many
opportunities to save money with auto insurance. Your insurance representative
can point you to some of them, but in the end, it will be up to you to do your
research and ask the questions
.
When looking for the
cheapest insurance you can afford, don’t lose sight of the big picture. What I
mean is that an insurance provider that offers lots of discounts might not be
cheaper than a company that offers few discounts
.

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