Since all auto drivers are statutorily required to purchase auto insurance coverages, it becomes necessary to save as much as possible in yearly insurance costs, which could be substantial. The major cost is the initial deductible that you would be required to pay on the auto insurance policy. Many people do not know that insurance companies offer discounts on the deductible for various reasons. The insurance companies consider your driving history, the number of persons listed in the insurance policy, the make and model of your vehicle, and the policy limits to decide on the deductible, the discounts that could be offered to you, and the monthly insurance payments against the auto insurance policy. Hence, you should know how you could obtain discounts and reduce your deductible.
Combine your Insurance Policies
One way of getting discounts on your auto insurance policy is to combine the home insurance and your personal insurance with the auto insurance. If you have more than one vehicle, combining the policies of both would also get you a good discount. Similarly, if you add another driver to your policy, the coverage of that driver along with yours would help you in obtaining a discount from the insurance company. Combining more than one vehicle would normally help you save up to 20%. If you combine your life insurance and auto insurance, the insurance company would offer you up to 5%.
If the insurance company informs you about the minimum deductible that you are required to pay and you voluntarily offer to pay a higher deductible, you would be able to negotiate with the insurance company to give you a discount. Even if the insurer does not give you a direct discount, still the company would agree to reduce your monthly insurance payments proportionately.
Safety and Security Discounts
If you apply for auto insurance, the insurance company would not only check your personal details but also inspect the condition of your vehicle. The inspection would include the make and model of the car, the safety devices like seat belts, air bags, etc. in the car, and the security devices such as burglar alarm, anti-theft device, etc. If you have such devices installed, you would be able to obtain a discount on the deductible for your auto insurance from the insurance company.
Driving History Discounts
Insurance companies look at your driving history before offering a quote on your auto insurance. If you have a minimum of 5 years of driving experience and you do not have any chargeable accidents in these 5 years, you would be able to get a discount up to 10%. Even if you had been involved in accidents but they were not due to your fault, you could explain this to the insurance company and get some discount.
Federal Employee Discounts
In District of Columbia, Federal employees above the age of 55 are eligible for auto insurance discounts up to 10%.
Hence, you should try to obtain as much discount as possible from the insurance company by presenting your strengths and explaining your weaknesses when you purchase your auto insurance policy.