Car Insurance Discounts

There are multiple auto insurance discounts that you may be eligible for.  We have provided a list so that you can see the types of discounts that many auto insurance companies offer.  Evaluate your situation to determine whether you should receive any of these discounts.

• Drop collision and/or comprehensive coverage on older cars
• Increase deductibles
• Comparing Insurance Policies
• Alarms
• Automatic seat belts
• Air bags
• Low mileage
• No moving violations in 3 years
• No accidents in 3 years
• Anti-lock breaks
• Multiple policies / multiple vehicles with the same company

Reduce your automotive insurance premiums

If you have an older car, you can lower your car insurance bills by dropping your collision or comprehensive coverages.

New cars are much more costly to repair.  If you were to damage your older vehicle in an auto accident, there is a greater likelihood that your repair costs will be significantly lower than those for a newer vehicle with similar damage.  The amount of premium that goes toward that coverage option is only slightly reduced for older cars than for newer autos.  You can save a good bit of premium by taking on a small amount of risk.

Lower Auto Insurance Premiums - Increase your deductibles

Auto insurance premiums are based on the amount of coverage you have, and the deductible you must pay before an insurance claim is paid.  Auto insurance deductibles usually range between $100 and $1000.  A lower deductible usually raises the premium amount, and a higher deductible lowers your monthly premium. 

You should set your deductible at an amount that you are comfortable with.  This usually means, figure the amount that you could afford to spend on your car in any given month, if you were to have an accident.  The amount that might take away from a leisure activity, but won't prevent you from paying all your bills is a good amount for an auto insurance deductible.

But be careful... if you have an accident, that amount must be paid before the insurance company will pay for your repairs, and there may be hidden costs in an accident.  For instance, your auto insurance policy may not pay the cost of a rental car while your car is being repaired.  Your transportation costs may add significantly to the total cost of the accident, in such cases.

Comparing Insurance Policies

The easiest way to save money on auto insurance premiums is comparison shopping.  You can often reduce your monthly insurance bill by 15% just by comparing your current policy to the policies that other companies offer. 

When comparing policies, there are a few things that you should keep in mind. 

• Compare apples to apples - Different auto insurance carriers offer different options.  Make sure that when you are comparing prices you are comparing a price for the same amount of coverage.  Be sure to compare the personal injury protection coverage amount, collision damage amount, liability coverage amount, and any other coverages that your auto insurance policy may provide. Likewise, some auto insurance policies have provisions for rental cars and roadside assistance.  Be sure that the policies you compare have identical services.
• Review your deductibles - A deductible is the amount of money that you must contribute in a given year, before the insurance company pays your claim.  These usually range between $100 and $1000, but can be as low as $0 and astronomically high.  The lower the deductible, the higher your premium.  Make sure that the policies that you compare have the same deductible.
• Choose a stable company - If you ever have to make a claim on your auto insurance, you want to know that the company you choose will still be in business.  AM Best and other rating services rate insurance companies according to their financial strength.  These ratings can be a good indication of how stable an insurance company is, and how long they might be around.
• Decide how important service is to you - You may find that a lower priced auto insurance policy may come with sub-standard service.  Be sure that the company you choose has a good reputation for paying claims quickly.  This, to some, is the most important aspect of an auto insurance policy.

Reduce your Auto Insurance Premiums Get an Auto Alarm

Auto insurance not only protects you in the event that you are in a car accident; it also protects your car from damage from unknown causes, vandalism, and theft.  Auto insurance companies give discounts for extra steps that you take to prevent these things from happening.

A popular way to prevent vandalism and theft is the auto alarm.  Auto alarms can be triggered by movement in a certain space, striking the vehicle, or breaking glass. This can trigger an audible alarm, calling attention to your vehicle, a kill switch that disables your engine, or some other response like an electrical current through the vehicle or an inaudible sound that causes pain, discomfort, or other physical responses from the thief or vandal.  The objective is to scare the assailant and prevent the crime.

Some auto insurance companies also provide multiple discounts for multiple anti-theft and recovery devices.  For instance, you may get discounts for an auto alarm and a Lo-jack that tracks your vehicle if it is stolen.

Reduce your Auto Insurance Premiums - Automatic Seatbelts

Most auto insurance companies give a discount for automatic seatbelts, or seatbelts that secure a person when the door closes.

Seatbelts prevent more serious injuries than any other safety device during an auto accident. This is why the US government has mandated their inclusion in every small auto made or imported into this country.  In fact, testing is so conclusive that most states require the use of a seatbelt while operationg a motor vehicle.

Automatic seatbelts work on the premise that a shoulder harness does most of the work during an auto accident.  They also encourage drivers and passengers to make use of lap belts when they automatically close as the car door is closed.  Auto insurance companies have determined that these mechanisms are safer than the standard  seatbelts for these reasons, and they provide a discount if your car is equipped with automatic safety belts.

Reduce Your Auto Premium Passive Restraints ( Airbags )

Most auto insurance carriers offer passive restraint discounts.  This discount can apply to your policy if your auto is equipped with automatic seatbelts, and single, side, or double airbags. 

Passive restraints are installed in most new vehicles. In fact, all passenger cars made during or after 1998 are required to have dual airbags, and all light trucks must have dual airbags, beginning with model year 1999. Airbags are intended to inflate if there is a major front, side, or rear impact.  The inflation of these airbags creates a protective barrier between the driver and the steering wheel or door, or between the passengers and the hard surfaces of the car.  At one time, serious injury and death were commonplace in accidents where an auto crashed with an impact greater than 35 miles per hour.  Often the driver would suffer from impacting against the steering wheel, which can cause internal organ damage or head trauma, even death.

Auto insurance companies recognize the value of these safety devices, and understand that they reduce the size of the claims that must be paid in serious accidents.  Take advantage of the presence of these safety devices by asking about passive restraint discounts when shopping for your next auto insurance policy.

Low-Mileage Discounts

The more miles you drive, the greater the likelyhood of being involved in an accident. Some auto insurance companies offer discounts to drivers who keep the number of miles they drive each year under a specified limit. This limit is usually between 10,000 and 12,000 miles annually, depending on the insurance carrier.  Auto insurance companies may also provide discounts for those people who use mass transit to commute to and from their workplace or are involved with a carpool. Be sure to check with your automobile insurance agent or  your insurance company to see which discounts are available to you. You may be suprised by your findings.

Moving Violations

If you have a clean driving record, you may be eligible to receive a discount. Most automobile insurance companies provide discounts to those drivers who have not had a moving violation in the past three years. Insurance companies consider speeding tickets and accidents the most serious moving violations which have an impact on your auto insurance premiums.

You should check your driving record prior to shopping for auto insurance. You may want to consider holding off on new auto insurance if you have a moving violation which can be removed from your records within a short period of time.

Reduce Auto Insurance Premiums Fewer Accidents

Auto insurance companies want to insure the best drivers. Safer drivers have fewer accidents, fewer speeding tickets, and make fewer claims. Every time you are involved in an auto accident or a moving violation, the state where you are licensed assesses points to your driving record.

Auto insurance companies limit their risk exposure by charging higher prices to drivers who have more points on their driving records. This allows them to offer lower prices to good drivers. "Good Driver Rates" can be up to 50% lower than rates for someone who has been in a few accidents, or has a few speeding tickets.

Auto insurance carriers look at your driving record over the past three years to determine whether your are eligible for good driver rates. They may also ask whether you have ever been convicted of Driving Under the Influence of drugs or alcohol, which is often viewed as much more serious than a speeding ticket or a fender bender.

If you think that you apply for good driver rates, be sure to ask companies when you are shopping for auto insurance what their "good driver" discounts are. Compare that price to the good driver rates of other companies, to help determine what the best policy is for you

Auto Insurance Premiums - Anti-lock brakes

Most auto insurance policies have a discount for anti-locking braking systems.

Anti-lock braking systems help prevent auto accidents by shortening stopping distances on wet and dry surfaces.  Most brakes without anti-locking mechanisms will lock if the driver slams the brake pedal, which can cause hydroplaning in wet conditions or skidding on dry surfaces.  The proper way to avoid this is to pump the brakes.  People are limited in the speed with which they can pump a brake pedal, so anti-lock brakes do the pumping for you. 

Auto insurance companies want to reduce the chance that their policy holders will have auto accidents.  The auto insurance discounts offered for anti-lock brakes encourage policy holders to get cars equipped with anti-locking brakes.

Multiple Policy Discount

Many auto insurance companies will offer you lower premiums if you have multiple insurance policies with the same company, or multiple vehicles insured under the same policy.  This works differently depending on which specific company you are dealing with.

Auto insurance companies will offer discounts or incentives if you purchase a homeowners insurance policy or an umbrella insurance policy to go along with your auto insurance policy.  In fact, you can often get all three types of policies for the same expense as a homeowner's and auto policy.  Keep this in mind when shopping for a new auto insurance policy, or renewing your current auto insurance policy.

Just because you receive a discount on your insurance premium, does not mean you are necesarily getting the most competative pricing. You should still shop your insurance coverage. You may find lower pricing by using multiple carriers.