How to maximize auto insurance discounts


Since auto insurance is a compulsory investment for every car owner, why not select an insurance that gives you maximum value for your money? Discounts are not always obvious on the contact. There are several ways of cutting costs on insurance policies once you understand how to go about the process. Taking out the time to examine auto insurance quotes from different auto insurance providers will offer a wide field to choose from. The fine print in these contracts can be intimidating- usually there are reams of small print to wade through. Read through one and jot down the important coverage policies that are relevant to you. Then go about getting insurance quotes for those particular insurance policies. Here’s how you can learn to cut down your premium levels:

  • Car related (age, model, safety and anti-theft features)The older your car the less you will be able to collect in the event of an accident. So you can afford to drop collision coverage if you drive an old car. Expensive makes demand higher premiums. If you want to save on insurance, opt for a more standard car model. Safety features like child locks, air bags as well as anti theft features cut down insurance rates. Opting to get your vehicle rated by doing a crash test has a direct impact on your premium charges.
  • Driver related (driving record and credit rating)An impressive driving record never fails to attract good insurance rates. The logic is simple. The company figures you are a less risky prospect if your driving record is clean. Half a dozen speeding tickets or drunken driving charges will not help at all. Another important thing is your credit rating. Insurance companies more often than not check on your credit rating before offering you a rate. So rectify any errors on low credit ratings to attract better rates.
  • Policy related (multiple vehicles, multiple policies, duration of policy etc)Avoid paying for duplicate coverage. This can especially happen for smaller insurance like rental reimbursement. If you already own an insurance policy from the same company, ask for a discount on the second one. Companies offer up to 30% off on second policies. Likewise, if you are insuring multiple vehicles, make sure you ask for a discount before signing on. Annual policies offer lower rates than six monthly or quarterly ones. Insurance companies often have affiliations with professional organizations because their volume of business is so high from that company. If you are employed there, take advantage of specially discounted rates.

    Beware of unexpected fees, charges or taxes concealed in the small print. Find out beforehand what the late charges are if any. Many companies offer impossibly low premiums. If you opt for these, you might end up paying enormous out-of-pocket expenses in the vent of a problem. Ask for quotes for identical coverage from different companies. This will help you constitute a fair comparison of rates.

The applicant can make a sizable saving by paying close attention to the list above.