September 25, 2009

What Sorts Of Discounts Are Available On My Auto Insurance Policy?

Shopping for auto insurance can be a chore; but once you've found a reputable company with agreeable rates, it's time to find out what auto insurance discounts you're eligible for. Cheap auto insurance doesn't have to be a myth if you have the right money-saving tools.

Auto insurance companies operate similarly to cable and Internet providers – the more services you have with them, the cheaper your bill. The "bundle" approach works for auto insurance as well. For example, many insurance companies offer a discount if you insure multiple vehicles registered at the same address with them, what is known as a multi-vehicle discount. You can also qualify for something called a multi-line discount if you buy life insurance, homeowners insurance or health insurance with the same company you use for your auto insurance.

Age of the insured is another cost-reducing factor in auto insurance. When a person turns 25 years old, his or her auto insurance rates will drop. Another discount for young people is offered when they go from single to married. Similarly, there are opportunities to get reductions if you are insuring a teenager. Many insurance companies offer discounts, if guidelines are met, to new drivers that have taken a defensive driving course. In the same way, good grades lower insurance rates. Eligibility can include top 20 percent of a student's class, a B grade average, a 3.0 GPA or higher, and so on.

And, of course, your driving record is always a factor in getting you cheap auto insurance. Most insurance companies offer a discount if you have a clean driving record. Commonly, if you have no moving violations and no at-fault accidents in the past three years, you are eligible for further discounts down the road. The year, make and model of your vehicle also play a can play a beneficial role in your insurance rates. Vehicles made after 1994 have certain safety devises, such as anti-lock brakes and daytime running lights, which may be able to save you money. The primary place of residence (zip code) is another important factor. If you are looking to move, you may want to call your insurance company and see if you can lower your insurance rates by moving to one neighborhood versus another.

Some of these auto insurance discounts may overlap, and you may hit a limit on how many discounts you're eligible for, but in this economy, every dollar counts. And, if saving money is as simple as insuring multiple cars (residing at the same residence) under one plan, or switching life insurance companies, then re-evaluating to make your insurance plan a cheap auto insurance plan may be well worth the time.