In these tough economic times, people are trying to cut corners in many different ways, especially when it comes to dealing with their vehicles. People are traveling less, waiting longer to fix problems, searching around for the cheapest gas, and/or buying more fuel efficient cars. Cars are a big money investment, particularly car insurance. Did you know that car insurance companies have a large amount of discounts available to their customers? These discounts can drastically reduce the amount a policy holder must pay annually for their car insurance.
Though these discounts are available, insurance companies don’t offer them right away and to receive these benefits you more likely than not need to inquire about them. It is estimated that on a yearly basis, insurance companies collect millions of dollars on premiums they would not receive if their customers took advantage of all discounts available to them. Therefore, here are a few suggestions on how to save on your premiums. Never forget to inquire is these are available to you because they change depending on where you live and what company provides your insurance.
The first discount you should ask about is the no claims or renewal discount. This discount, which is perhaps the most widely known discount, is offered to drivers with a clean insurance claims record. So, over time, and up to a delineated amount, your percentage discount will increase, so long as your insurer has not paid any claims on your behalf. Another important discount to ask about is the anti theft device discount. Auto theft in this country causes the automobile insurance companies to pay out hundreds of millions of dollars a year for claims. Any device or mechanism that reduces the probability that your automobile will be stolen may result in a discount to you because the risk of a theft claim is reduced.
Another discount that may be available is based upon advanced driver training. The insurance companies believe that a more highly trained driver runs a lower risk of accident than a less experienced driver. Therefore, if you have taken an advanced driver training course, it may entitle you to a discount, especially if you are newly licensed.
A multi-policy discount is yet another option. Insurance companies want as much business as they can from each policy holder. Therefore, they encourage those who have car insurance with them to also get home insurance or life insurance. Getting multiple policies with the same company allows you to take advantage of discounts often on each of the policies.
Similar to the above discount, many companies will have a multiple vehicle discount. If you are a multi-vehicle family and insure all the automobiles with the same company, you are eligible for this discount. Say you do not use one of these vehicles often; ask about the low mileage discount. Those who drive 5000 miles or less a year may qualify for this discount as well.
These are just a couple examples, but I’m certain you get the point. Insurance companies will offer discounts for behavior and items that lower their risk and increase revenue. However the will almost never give this information up freely, you will have to ask.
