August 20, 2009

3 Ways to Obtain Cheap Auto Insurance

Cheap auto insurance is important to all car owners because auto insurance is required for all cars. Banks require comprehensive and collision coverage on car loans. If your car does not have a loan, then you only need to carry a liability policy. Frugal drivers will need to get auto insurance quotes. Here are three ways to get the cheapest auto insurance: group, association, club affiliation discounts, new auto insurance rates, and a multi-policy discount.

One way to obtain cheap auto insurance is through a group or association discount. An example of cheap auto insurance rates is USAA’s policies for all military retirees and their families. If you order online, you can get $50 off of your policy. USAA offers additional discounts to safe drivers and those who have accident-free driving records. Business Week has referred to USAA’s cheap auto insurance as “Customer Service Champs.” Check with associations you are a member of and buying clubs such as Sam’s Club, AAA, and Costco. Lower your car insurance rate by using an automatic bank draft or by credit card authorization.

Obtain the cheapest auto insurance by getting new auto insurance quotes and compare them to present car insurance rates. Use your current insurance policy coverage limits to compare new car insurance quotes. You will be comparing apples to apples. The Internet is a good place to get auto insurance rates if you have a good driving record.

Get the cheapest auto insurance rates by checking for anti-theft device discounts on a new comprehensive coverage policy. Anti-theft devices include a steel collar for the steering wheel and alarm devices activated by door sensors or window etching systems, which will qualify you for a five percent discount. If you have an electronic locator on your vehicle, you may qualify for a discount of 26 percent.

Other new auto insurance quotes to mention for comprehensive and collision coverage are:

* A locked garaged vehicle discount of 10 percent
* Driver’s education for drivers under 25 years of age with a discount of 3 percent
* Education achievement for college and high school students who have a 3.0 grade point average
* Policy paid in full discount of 5 percent
* Three year continuous service discount of 12 percent

Check your current car policy carrier for multi-policy discounts. If you also have a homeowner’s policy, tenant’s policy, or condominium policy, you may be eligible for a cheap auto insurance policy. Savings can be from 2 to 12.5 percent and those combination percentages can certainly add up, but generally there is a limit of around 15 percent.

These are three ways to get the cheapest auto insurance rates. Don’t be shy to ask your policy holder if they have any others. Companies offer different discounts and you will not know until you ask.