If you're looking to save money on your auto insurance premiums, here are some things to think about:
What are your deductibles? Are you willing and able to pay more out of pocket if you have an accident?
A deductible is the amount of money you must pay out of your own pocket before your insurance kicks in. A higher deductible should mean a lower premium; a lower deductible, a higher premium. Choose a deductible you'd be comfortable paying in the event of a loss.
Deductibles only apply to certain coverages, such as comprehensive and collision coverages. Auto insurance deductibles typically range from $100 to $1000, but vary by coverage, company and state. Contact your insurance company or insurance agent for more information on options available to you.
Do you have other types of policies? Are they all with one company, or spread across many companies?
Several insurance companies offer multi-policy discounts when customers have more than one policy with them. For example, if you insure both your home and auto with one company, you could save money on both policies.
Can you live with the basics? Or do you need extras?
While some coverages are mandatory in most states (e.g. bodily injury liability and property damage liability), other coverages, such as comprehensive and collision, are optional. If you own an older car of little value, for example, you might want to ask yourself whether you really want comprehensive or collision coverage.
Contact your insurance company or insurance agent for more information.
Are you a safe driver?
Many companies offer savings and discounts to safe drivers. For example, if you and others in your household maintain driving records free of accidents, violations, and large claims, you could see lower premiums.
Do you qualify for any of these common auto insurance discounts?
Auto insurance companies differ in the types and amounts of discounts and savings they offer, but here are some common ones:
- Home ownership discount, for people who own a home or condo.
- Multiple policy discount, for people who obtain multiple policies (such as auto and home) from one company.
- Paid in full discount, for people who pay their entire premiums in full.
- Good student discount, for young drivers with good grades (e.g., A/B average).
- Driver training discount, for young drivers (e.g., under age 21) who complete a driver training course.
- Student away at school discount, for people with a child who goes away to school.
- Safe driver discount, for drivers that have no accidents, violations or major comprehensive claims in their households.
- Multi-car discount, for people who have multiple cars insured on one auto policy.
- Hybrid vehicle discount, for customers who insure hybrid autos.
- Early quote discount, for people who plan ahead and get a quote in advance of their desired policy start date.
These are just simplified explanations of some common auto insurance discounts. What discounts are available vary by company. You should ask your insurance company or insurance agent about any discounts available to you.