May 7, 2010

Five Ways To Help Get A Discount From Your Auto Insurance Provider

Purchasing a car is a milestone event for most people. It’s a large expense, and as such, the average buyer takes the time to shop around, do research, and ultimately get the car they want and need for the lowest possible price. It stands to reason that savvy shoppers would do the same when buying car insurance – shop around, do research, and purchase the policy that best fits their wants and needs. In doing so, it may come in handy to know five common ways to get a discount from your auto insurance policy provider.

One way to get an auto insurance premium discount is to assume more risk. Asking for a higher deductible is one method of assuming more risk and, consequently, saving more money up front. A deductible is the amount of money that you pay up front before your insurance begins to pay on the claim. For example, if you are in an accident that causes $2,500 worth of damage, and your deductible is $500, then the insurance company pays $2,000 after you pay your $500 deductible. In contrast, if your deductible is set at $1,000, the insurance company would only be liable to pay $1,500. Sure, a higher deductible means that the car owner pays more money when there is a claim, but in exchange for assuming that added risk, the monthly premium on the auto insurance policy will be less.

A second way to pay less for your auto insurance is to combine your coverage. If you own a house, consider buying car insurance from the same company that insures your home. Many insurance providers offer significant discounts for combining coverage. A third way to get an auto insurance premium discount is to make sure that your car has certain safety features. Some fairly standard safety features that may earn you a discount are antilock brakes, airbags, and automatic seatbelts, to name a few. Two additional means of discounting your auto insurance premium may be things that you are already doing – having a low-risk occupation (one whose workers statistically have fewer accidents) and being a member of a professional organization or auto club such as AAA. Many insurers offer driver discounts for both of these things, but it’s important to ask the questions and shop around because they may not automatically give the discount and not all insurance companies are alike.

Car insurance is a necessity, but having an auto insurance policy doesn’t have to break the bank. By keeping in mind these five ways of getting a discount, you can get the best policy at the best price. Shopping online can also help you find affordable coverage.