Discount Rates

Five Ways to Save Money on Auto Insurance

As a savvy insurance shopper, you know that bundling your home and auto insurance with one company can net you a significant discount on your premium, and you probably also know that making a single payment for your entire premium is less expensive than making monthly installments. Nevertheless, we all want to save as much money as we can. Here are five more methods of reducing what you spend on auto insurance:

• Consider an Annual Policy. The standard term for cheap insurance is six months, but many companies will give you a discount if you commit to a full year of insurance. You might have to pay the whole thing up front, so be prepared for that, but many companies will allow installments, as well.
• Group Rates. Just as theaters and museums offer special discounts when you book a block of tickets instead of buying just one, auto insurers often extend discounts to members of trade unions, automotive enthusiasts clubs, owners groups for specific makes and models of cars, and employees of large companies. Before beginning your hunt for supplemental insurance check with your benefits officer, or with any groups you're a part of, to see if discounts apply. As well, ask your insurance agent.
• Embrace EFT. Electronic Funds Transfer, or EFT, is one way to offset the penalty you pay for making monthly installments on your auto insurance premium, since most insurers give you a discount for setting up automatic payments, but it can save you money on your regular renewals as well. As "going green" becomes more and more important, EFT is often married to the option for receiving electronic statements instead of paper ones, for even bigger savings.
• Low Mileage = Little Money. If you have a short commute, or just don't drive very much, you may qualify for a low mileage discount. Depending on where you live, this means that you drive your car less than 14,000 miles a year. You'll have to provide proof, of course, generally two certified odometer readings taken a month or more apart, so that your auto insurance agent can compute an average, but keeping your car in the garage will help keep cash in your pocket.
• Anti-Theft Devices. Most modern cars come with some kind of passive restraint system, but even aftermarket alarms, LoJack-type tracking systems, and engine immobilizers will qualify you for significant discounts on your auto insurance. Be careful, though. Some aftermarket immobilization systems are not sanctioned. Contact your insurance agent before adding an anti-theft device, if your car didn't come with one pre-installed.

While these five things are some of the most common ways of earning auto insurance discounts, there are many others as well. Before you sign anything, or pay any money, ask your agent what other discounts they offer. Your wallet will thank you.

Back to Home Page