Getting Car Insurance Discounts

To get the most discounts on auto insurance, you might have to do a bit of legwork yourself and not just depend on your insurance broker.

1. Obtain at least three different quotes from different companies. This will allow you to choose from a variety of auto insurance quotes and then choose the lowest rate. However, don’t get too little insurance; have enough to cover any possible accidents, loss of income, and your assets. You don’t want to be caught in a situation where you’re underinsured and lose your house as a result.

2. Decide on an insurance budget before you buy a new or used car, then make sure the car falls into this budget before you purchase it. Do this by calling the insurance companies and asking how much the insurance rates will be for that particular car.

3. Ask for higher deductibles. Just changing your deductible from $250 to $500 or more can save you a lot of cash out of pocket in your insurance premiums. Be sure to have this deductible readily available in a savings account, in case of an accident.

4. Combine insurance from the same provider for a discount. If you have homeowners or rental insurance, then buying your car insurance from the same company usually nets you a break.

5. Be proactive in getting more breaks.  Some insurers give discounts for:

• Not smoking.
• Taking a driver’s ed refresher course.
• Getting good grades, if you’re a student and under age 25.

So get that GPA up, stop smoking, and take a class.

6. Get a group rate through a professional group, employer, business, or alumni association. If you belong to a group like AAA, you might automatically qualify for discounts. You do need to ask, though.

7. Lower the coverage on your older vehicles. Sometimes cars aren’t worth the amount of insurance you have on them, so if you total it, you’ll have wasted all the insurance payments. Look up the car’s value in the Kelley Blue Book to see if you’re over-insured on your older car. Talk to your insurance company and change the amount of coverage you have, if necessary. Just remember, you still have to meet your state’s minimum requirements.

8. See if you work in a low-risk occupation.  Insurance companies charge some professions less for car insurance premiums than they do others, based on historical data showing that these professions get into fewer accidents.  Engineers, for example, may get a discount because of this, even if they do no on-the-job driving.

9. Demand a renewal discount. Not all insurance companies have this, but many do offer a discount to drivers who have been with them for a couple of years and haven’t been in an accident. Ask your insurance company for a rate break at renewal time.

10. Ask for discounts. This is perhaps the most important tip of all: simply ask your insurance agent what discounts you qualify for. For example, if you don’t drive long distances or you carpool, you could save a lot of money using the low mileage discount.