Finding Discounts On Auto Insurance

Friday, August 27th, 2010 at 2:51 pm

Saving money is more important than ever, especially when buying auto insurance. Donâ€™t assume that an insurance agent will know what kinds of discounts you or your car are eligible for; you should make every effort to find the best options for yourself. CarInsurance.com will help you get the best possible deal, including many discounts you might not be able to find on your own. Discounts can drastically reduce the cost of auto insurance, and you should take advantage of any that youâ€™re able to. If you understand the discounts available to you and how they will affect your premium, youâ€™ll be able to make better decisions about your coverage, and youâ€™ll be able to save yourself quite a bit of money.

Drivers should take advantage of all the discounts that are offered by many companies allowing them to dramatically reduce the cost of car insurance. By being aware of how the discounts affect their insurance premiums, shoppers can make better decisions for coverage while saving some money. Below are several discounts and other ways to help you save on your premium.

Often car insurance companies will give discounts to people that stay with them for several years without having any accidents, and there are also renewal discounts. On the other hand, if you decide that itâ€™s time to change insurance companies, you may be able to get a â€œproof of prior insuranceâ€ discount with the new insurer. Some companies will even give you a discount if you had limits on your previous policy: if youâ€™ve been a good driver in general, youâ€™re a lower risk, which equals discounts.

Insurance companies often award clients who have stayed at with the same insurance company for many years without accidents reported. You may also be offered a renewal discount. It benefits the insurance company to keep you happy if you have stayed with them for years without any accidents. They wish to keep your business. Some companies might honor you by offering a discount if you have had prior limits of your previous policy. They offer this because they recognize that you are a better risk.

If you do choose to switch insurers, a discount may be applied for proof of previous insurance, though most companies ask for proof of at least 6 months from your last company. A discount may also be applied if you are a full time student and meet certain grade requirements, are unmarried and under the requested age. If you own any home as a primary residence, if you are in or ever have been in the military and if you have an anti-theft device on your car, discounts may apply.

Another idea to lower your premium is to assume more risk: if you elect to raise your deductible (the amount you must pay for coverage before insurance kicks in), this takes risk off the insurer and places it on you. However, be sure that you have enough in the bank to cover your deductible in case something should happen.

The type of car you buy can also affect your premium, for example, a sports car will cost more than a sedan. Knowing your policies and premiums can help you save a lot while being sure you have the right amount of coverage. If you choose a higher deductible on your Personal Injury Protection or Comprehensive and Collision coverage, you may save on your premium.

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