November 28, 2010

3 Ways Auto Insurance Sales Can Help You Lower Monthly Premiums

Because auto insurance sales have become such a competitive industry, it has also become what's known as a buyer's market. With mandatory auto insurance requirements in nearly all of the 50 states, the market is wide open with tens of millions of potential customers, most of whom, if given the opportunity, would opt for lower premiums on their vehicle coverage.

Because of this, insurance companies go out of their way to try to offer special deals in an attempt to persuade customers to either stay with them for their insurance needs or to switch to them, thereby dropping their current carrier's coverage. In that regard, some insurers offer loyalty discounts to policyholders who continue their coverage for a certain length of time. Some companies also offer a special discount to new policyholders who have switched their coverage from a competing provider.

Picking three ways to lower premiums is actually fairly easy, since some auto insurance sales companies offer as many as a dozen or more discounts, two of which have already been mentioned. Not all companies offer the same discounts or have the same requirements to qualify for a certain discount but there are some generalities that should be considered.

A safe driver discount is available for policyholders who go for a specific period of time without making a claim and with a minimal number of traffic violations. A discount is also typically available for those who have graduated from approved defensive driving courses or driver's education classes. Young drivers who are still school students may also qualify for a 'good student discount', determined by their grade point average.

Some companies will offer a discount if you're at least 55 years of age and retired and some offer lower premiums for drivers who are at least 65 years of age and drive at least 25% of their covered vehicle's annual mileage. This is called a 'senior adult discount'.

Discounts may be offered for passive restraint systems such as motorized seat belts or airbags and for anti-lock brakes. Discounts also exist for anti-theft devices, which only makes sense since these items lower the insurer's risk exposure. There are also discounts for full-time ranchers or farmers who use the insured vehicle strictly for use on their property.

Auto insurance sales are big business and with a little dutiful online comparison-shopping it should be easy to find just the coverage you need and still get lower premiums. Carrying all of your various policies, such as homeowner's, auto, medical and life with the same company can also save you money. Just remember, getting insurance discounts is not the same as getting discount insurance.