Saving money on a cheap auto insurance policy

Many people don’t realize that the price they get for their car insurance is NOT the best one available. They may have chosen the cheapest company, or most reliable company, but the fact remains that there are further discounts many car owners are missing out on. These discounts, when combined, can save hundreds of dollar a year! Knowing what these discounts are and how to get them is crucial to making sure you’re getting the best deal possible on your car insurance.

First of all, it’s important to know that many major insurance companies offer the lowest auto insurance for having a clean driving record. It’s key to note, however, that this is NOT the same as not being charged extra for a bad driving record. Never assume that the rate quoted by an agent is for a driver with a clean record; always ask. If you do have tickets on your driving record, don’t go out of your way to mention this to an agent.

Second, try to package your auto insurance with home insurance or life insurance from the same company. Many insurance carriers offer hundreds of dollars in savings per year if you are willing to carry multiple policies with them. Once again, don’t assume; be sure to ask for a discount if you are carrying multiple policies with a particular insurance carrier.

Third, remember that the type of car you drive influences you premium. Sports cars, large trucks, and classic cars usually carry high premiums, while late model fuel-efficient vehicles tend to cost less to insure. This means Hondas and Toyotas are in, while Corvettes and Hummers are probably out! Make sure to emphasize the reliability and efficiency of your vehicle to agents. Also, remember that color matters! You may have heard that red vehicles tend to get pulled over far more often than less brightly colored ones. Insurance companies take note of this, and charge you accordingly. So next time you’re tempted to go with that hot pink sedan or bright red sports care, think again! Simple colors may be dull, but they’ll also save you money.

Fourth, pay close attention to payment options. You can often save significant amounts of money by choosing to pay biannually instead of monthly. Many drivers get in the habit of simple asking what the monthly premium is. Instead, do a little arithmetic, and figure out what the best option is over a year’s time. Some companies charge more for automatic withdrawal; some give discounts. All it takes is the ability to ask questions and a working calculator to find the payment options that work best for you.

Last of all, make sure to ask lots of questions. A variety of other discounts may be available, depending on your insurance carrier. Discounts are often offered to teachers, policeman, firemen, and other employees of the state or federal government. Discounts may be offered to students, both traditional and non-traditional. Above all, though, remember the cardinal rule: Insurance companies don’t have to give you discounts you don’t ask for! Be sure to check, then ask, and see how much money you can save.