How Can I Get Auto Insurance Discounts?

Auto insurance discounts can significantly reduce the cost of your auto insurance. The premium you pay for your annual car insurance is unlikely to be the same as the amount paid by your neighbors, since auto insurance coverage rates depend upon many variable factors. Factors that impact your auto insurance rates include:

• Type of vehicle
• Safety rating for the vehicle
• Safety features (air bags, anti-lock brakes, etc)
• Anti-theft features (cut off switches, computer chip keyed ignitions, etc)
• Vehicle's age
• Location of vehicle
• Your driving record
• Vehicle mileage estimated per year
• Ease of repair or replacement for damaged vehicles
• Natural disaster claims for the location
• National averages for injury cost
• Accidents and theft

Shop for Auto Insurance Discounts

The best way to receive Auto Insurance Discounts is to shop around carefully. Many companies offer different premiums depending on historical losses for a given geographical area. Some companies offer lower rates in geographical areas they are trying to penetrate while other companies will offer lower rates in areas where they have already established relationships with brokers, repair facilities and claim adjusters

Compare Auto Insurance Policy Features

Tailoring your coverage to your individual needs can also help you get cheaper auto insurance. For example:

• If you historically drive your vehicle 10,000 miles a year, make sure you have not estimated your mileage higher.
• Make sure you do not purchase duplicate coverage such as towing or replacement rental vehicle coverage should you already have a roadside assistance or plan.
• Drop collision coverage if the value on your car is low, especially if your car is worth close to or less than your deductible
• Raise your insurance deductible if you have the cash on hand to cope with making a larger financial contribution in the event of an accident

ASk for Auto Insurance Discounts

Also make sure you discuss discounts with your potential insurer. Ask for good driving discounts, multiple vehicle discounts, and discounts for safety or anti-theft feature discounts for starters. Taking a defensive driving course can also help lower your monthly bill. Finally, you may be entitled to discounts based on your involvement with professional organizations or your employment.

If you are pricing insurance for a vehicle you may purchase, then make sure to check the safety ratings of the vehicle. Every year the National Highway Traffic Safety Administration crash tests more than a hundred of the most popular vehicles by driving the car into a barrier at 35 mph. They use a star system to rate these vehicles for safety, and this has a direct bearing on your premium. If you select a model with a better than usual safety record, you could save a couple hundred dollars per year. This savings goes up even more if you select a model that thieves hate. Effective anti-theft devices can slice another 15-20 percent off your insurance bill.

More Auto Insurance Discounts Tips

If you already have an insurance policy, for example homeowner's insurance, you may be able to save by grouping these policies together. Ask the same company for a discount on a second insurance policy for your vehicle. Often you will be offered a 10-15 percent discount for using the same company.

Some companies also use your credit rating when considering extending auto insurance discounts, and a poor credit rating can affect your auto insurance premium. The insurance company giving the quote checks your credit, just as they would check your driving record. Keep an eye on your credit rating, and if there are any unfavorable errors, do what it takes to correct them.

Overall, your safe driving record is by far the biggest contributor to auto insurance discounts. If you have not had any moving violations or accidents for the past three years, you may be able to reduce your premiums by up to 40 percent through safe driving auto insurance discounts.