In an industry like auto insurance, getting the best deal can depend on a number of conditions. Getting the best auto insurance deal isn’t just about the company you choose. Though, that’s part of it. There are a number of steps you can take to pay less for auto insurance, while still receiving adequate coverage for your needs.
If you’re in the market for car insurance, whether you’re insuring a new car, or just looking to switch carriers, make sure you take a look at the following tips to get the best deal.
1. Ask the Carrier for Discounts
Don’t wait for an insurance company to tell you about discounts they offer. Sometimes, carriers don’t advertise their discounts on premiums – waiting instead for you to ask. You may find they offer discounts of 15% to 40%. There’s a good chance at least a few of these will apply to you. Discounts that may be available include the following:
- Non-smoker Discount
- Sole Driver Woman Head of Household Discount
- Senior Citizen Discount
- Law or Medical Profession Personnel Discount
- Carpool Discount
- Low Mileage Discount
- Defensive Driving Course Discount (If you complete a course on defensive driving, where you learn how to avoid potential accidents, you may qualify for a discount on your premium)
- Tracking Program Discount (Some companies offer a program to monitor your driving in exchange for a premium discount)
- Good Driver Discount
- Military Discount
2. Check Out Your Own Car
Your own vehicle may either help or hurt you in the deal finding process. Depending on its make and model, repair cost, and safety record, you may end up paying more for auto insurance. Autos that have statistically higher traffic ticket rates will also increase your insurance costs.
If you find your car doesn’t score well in the categories just mentioned, do the math to determine if trading out your current vehicle for one that’s safer and less expensive to maintain is worth the savings you’ll receive in auto insurance premiums.
3. Look for Cost Cutters for Younger Drivers
Teenage drivers can spike up premiums. But there are some things you can do to keep your premiums low. If your teenage driver is a good student (B average or higher), you can get a discount on your premium. You can also pay less while your student is away at college, without a vehicle to drive. Also, consider enrolling your child in a certified drivers’ training course. This will save you additional money in premiums.
4. Tweak the Numbers
Besides looking for premium discounts, you can also change the deductible amount or type of coverage if odds are in your favor. For instance, if you have an older vehicle that isn’t worth the price you pay in full coverage insurance, consider lowering the coverage amount. The money you save in premiums could be more than what it costs out of pocket to repair or replace it.
Also, if you can afford to pay your premiums all at once, you’ll save on service fees that are often charged for monthly or quarterly premium payments. Or, if you can afford it, and you have an excellent driving record, consider raising the deductible amount, and reducing your premium amount.