Maximizing Car Insurance Discounts |
By Charles Park on September 24, 2010
.jpg.aspx?width=75&height=75) With the recent economic downturn pressuring consumers to pinch pennies, car insurance is, fortunately, relatively cheap nowadays. This is in no small part thanks to the internet and the relative ease it allows anyone to compare premiums and coverage. According to the website Insurance.com, car insurance currently averages at about $1,871 per year. This cost can be further reduced by a few simple measures and some “shopping” around.
A good way to start is to find all the potential discounts you could qualify for. For instance, by insuring your car with the same company that insures your house, you may qualify for a combined discount. Be sure to ask your company if they offer this option. Through this arrangement, you could potentially generate significant savings on both premiums.
Renewal discount is another prevalent offer by most car insurance companies. This is given to policy holders who have remained in their respective plans for an extended period with no history of automobile accidents. Companies are happy to keep accident-free customers and a renewal discount is an incentive to keep such customers.
Discounts could also come from installing auto safety features. Among such features is anti-lock brakes. Some states require insurance companies to give discounts in order to boost automobile sales with this feature or encourage installation. Be sure to check if your state or insurance company offers this discount. Other eligible features include aftermarket anti-theft devices.
Insurance premiums are largely determined by the insured car's make and model. Costly sports cars generally have costly premiums while passenger sedans, SUVs, and minivans are generally inexpensive to insure. In some instances, liability insurance can be affected by the vehicle's make. For example, insuring larger SUVs would require a larger liability rate due to its potential to inflict more damage relative to other types vehicles in a collision. To aid your search for a vehicle that requires less to cover, figures such as theft ratings, damage ratings, and liability ratings are available online.
Other ways to reduce coverage is to assume more risk by adjusting your deductibles or, if you own a vehicle which costs more to repair than replace, you could try opting out of comprehensive and collision coverage.
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