February 28, 2011

How To Know When You Are Eligible For Auto Insurance Discounts

Growth of Internet has converted auto insurance into a buyer's market. There was a time when the car owner had no scope for auto insurance discounts. He or she had to choose the policy offered by the insurance company at the quoted premium. Today, car owners can make use of online auto insurance quotes to get a bird's eye view of the entire industry. They can check the best deals in the market before proceeding.

This has simplified the process of seeking and obtaining discounts on the auto insurance policy.

The oldest and most beneficial method of obtaining auto insurance discounts is to avoid filing claims. Insurance companies love those customers who do not file claims on their auto policies. Avoid filing a claim in a year and you will automatically get a 15-20% bonus on your next year's premium. Avoid filing claims year after year and this discount is only going to rise. In 6-7 years, you will reach a point where you get a 65% No Claim Bonus on your policy, thereby reducing premium significantly.

Loyalty bonus is another great option. Online auto insurance quotes have made it easier for policy holders to switch from one insurer to another. This is why insurers offer 10-15% discount for those who remain loyal customers and do not switch.

Getting discounts for providing bulk business is an age old concept. This applies to insurance as well. If you combine your home, auto and travel insurance policy and buy all three from the same service provider, you can easily wangle another 2-5% discount on your overall premium paid.

Reducing extent of risks to your automobile can easily help you get good auto insurance discounts. Having a webcam in the car will reduce chances of teens ignoring traffic rules when driving the car. Having a GPS device combined with an immobilizer and car alarm will make it next to impossible to lose your car to theft. Parking your car in a private garage instead of out in the open will boost your case for extra discounts.

Do insurance companies charge more for those with poor credit scores? This is a contentious issue. However, you never know how and when insurers will bring this into premium calculations through the backdoor. Play it safe and have a healthy credit score at all times.

The more you drive, higher are your chances of meeting with an accident. Try car pooling to reduce miles driven, to reduce risk of accident, and save on premium.

There is no single formula that will help all drivers get good discounts. Understand your needs and driving habits to get the best deal.