A variety of simple methods can reduce automobile insurance premiums. It is up to you to be informed about your alternatives and to inquire about the savings you are entitled to from your existing insurance carrier.
Various variables determine insurance premiums, but many options exist for cutting costs. The schedules are detailed below. Remember that not all insurance provides these savings and that, in some places, they are illegal. Everything is mentioned for two reasons: information is power, and inquiring with the insurance company can’t hurt.
Salary Reduction Bonus
Insurers take note of careers with a lower risk of accidents because their members drive less and take fewer chances on the job. You may be eligible for discounts if you work in one of those fields. Police officers, firefighters, doctors, dentists, RNs, professors, and researchers are all in the “good” category.
You may be eligible for discounts if you are a current or former member of the armed forces or a college student participating in a commissioning program like ROTC. Additional considerations, such as rank, whether or not your vehicle is parked in a base garage, and whether or not your automobile is stored during deployment or when otherwise away from home, may help to reduce premiums for insurers who specialize in serving the military.
Your insurer’s business connections with other firms may also provide you with opportunities for employee car insurance reductions. If you work for one of these businesses, you could be able to save money.
Contacting the various groups you belong to and inquiring about what discounts have been negotiated with different businesses is always a good idea.
Calculating Your Credit Rating
How often do you check your credit score? Most insurance providers now consider credit scores, and having a good one can reduce your auto insurance premiums by as much as 50 percent. The exact credit scores that result in discounts are a closely guarded secret, but industry sources say that a person with a score of 700 or higher is more likely to qualify for lower premiums than someone with a score in the 500s.
Affiliations
Discounts on insurance premiums are sometimes made available by insurance companies in exchange for sponsorship. A sorority, fraternity, professional organization, college, or institution could be potential partners. There may be a price break for current students and grads.
Environmentally Friendly
Paperless billing statements are becoming increasingly prevalent as businesses strive to lessen their environmental impact. Though less well-known, your insurer may provide a discount if you select this alternative.
Mileage
It’s common knowledge that limiting your annual mileage will help you save money on car insurance. Certain businesses will reward you for being environmentally conscious by giving you a discount of up to 10% if you drive a hybrid. Insurance experts believe it’s not because hybrid cars are inherently riskier but because their owners and operators are.
Guaranteed Security
You might already know installing safety equipment like airbags and anti-lock brakes can lower your insurance costs. However, you should know that installing anti-theft measures such as car alarms, fuel or ignition cutoff switches, stolen-car tracking systems like LoJack, and VIN etchings, or engravings of your vehicle identification number on your windshield and windows can lower the cost of your comprehensive insurance policy.
Defensive driving lessons are another option for lowering your car insurance premiums. As much as 10% off your monthly premium is possible. You and your passengers could benefit from learning some basic defensive driving skills, leading to financial savings.
You may qualify for the Good Driver Discount with a clean driving record. The discount may also consider your residence and parking situation. If you are eligible, you might save as much as 20%.
Making Preparations
Being prepared can save you money when it comes time to renew your policy. You can save between 5 and 10 percent if you switch insurance providers before your next premium is due. Start your search for new auto insurance coverage at least two weeks before your existing policy expires to take advantage of these early shopping-around discounts. Be sure to check with your current service provider to see if they are willing to match the early switcher discount of a competing service before leaping. They will likely grant your request if you have been a reliable customer and driver.
Loyalty
Some auto insurance companies offer discounts to customers who stay with them. Consumers who have been with Nationwide for at least five years are eligible for a 15 percent discount, while consumers who have been with the company for at least three years are eligible for a 5 percent discount.
High Marks
You may be eligible for a “good student discount” on your auto insurance if you fall into a demographic your service provider deems safe. It’s not uncommon for businesses to provide discounts of more than 10%. The idea behind this is that safe drivers tend to be good academics. Full-time students are the only ones eligible for the discount. Although there may be exceptions, most institutions of higher learning are eligible for the student discount. 10–25% discounts are possible.
The Joy of Two
Insurance companies have found that married people are statistically less likely to have accidents than single people, which may seem counterintuitive. Several insurance companies offer discounts to same-sex couples who are not married.
Non-married people may insure their cars together to take advantage of the multi-vehicle discount most companies offer. Alternatively, you may be eligible for a discount by insuring your vehicle and home with the same insurer.
Before renewing car insurance coverage, married or single drivers should investigate savings.
Package Deal Price Cuts
Many insurance companies provide discounts if you purchase multiple policies from them. You may be eligible for savings if you buy many types of insurance from the same provider (such as life, auto, and house). You usually save money when you bundle multiple forms of insurance with a single provider.
Rebate on Select Payment Methods
Many insurers provide savings if you agree to pay in installments through an automatic payment system. Most of these rebates add up, so collecting a bunch may save quite a bit of money.
Discounts for Buying Multiple Vehicles
You can save money by bundling premiums when you insure more than one vehicle with the same company. Significant savings may be possible, depending on criteria such as the number of cars, their make and model, and the year they were manufactured.
Pay-as-you-drive insurance is a cost-effective option.
This novel and rapidly growing insurance category can be structured on agreed-upon thresholds for annual miles, actual driving time, independently-verified odometer readings, or tracking devices like a global positioning system (GPS).
Although this insurance might save you a lot of money, staying within the mileage limits you negotiate with your insurance provider is in your best interest. There may be monetary repercussions for infractions.
Conclusion
Auto insurance policyholders might find numerous avenues through which to cut costs. Your insurance agent may make suggestions, but it is ultimately up to you to do the legwork and ask the pertinent questions.
Keep the larger picture in mind when shopping for the best insurance deal. What I mean is that it is possible for an insurance company with several discounts to be more expensive than one with fewer.
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