When purchasing a new auto insurance policy, or when looking over your current one to see if there are any changes you can make, there are several things you might have overlooked that can get you the lowest auto insurance rates possible. When shopping for auto insurance, make sure to look for discounts that can dramatically reduce your overall premium. The customer service representative or agent at any given car insurance company may not immediately tell you if you qualify for certain discounts. Understanding your auto insurance coverage and available options can ultimately get you the lowest auto insurance rates.
If you qualify for these discounts, you should be able to combine them into one auto policy and also maximize the amount of money you can save on your auto insurance.
Buy other policies with your insurance carrier
Insurance companies that handle multiple lines of insurance such as car insurance, homeowner’s insurance and medical insurance will usually offer discounts to those holding multiple policies. So, if you get your car insurance and homeowner’s insurance through one company, you can get a discount off both premiums, which is typically 10-20% off your current or quoted rate.
Profession Discount
Depending on your profession, you may be able to receive a discount. A few professions that qualify are engineers, scientists, teachers and doctors. Ask your insurance agent or representative today if they offer a discount for your specific position.
Good Driver Discount
The exact terms of this discount vary by state, but it usually reflects on whether or not you have received any violations. The number of violations over a certain number of years will be different depending on where you live. However, it may be the case that if you have driven for three years and have not received any violations (such as speeding tickets or a DUI), you should be able to qualify for a good driver discount, which tends to be at least 20% off the standard rate.
Renewal Discount
Since car insurance companies want you to keep your policy (the longer you are with a company the more profitable you are), they may offer a renewal discount that can range from 1-10%. This discount will likely begin after you have been with the company 3-5 years, and the discount percentage will increase as you continue coverage with that company.
Student Discount
If you are under 25, a full time student, not married and meet the grade requirement set by an insurance company, you may qualify for a student discount. Typically, the grade requirement is a B average, and the insurance company will ask for a copy of your unofficial transcripts for proof.
Multi-Vehicle Discount
If you have multiple cars on one policy and do not have an equal number of drivers for those cars, you may be eligible for a multi-vehicle discount. For instance, if you are the only driver in your household and own two cars, you would qualify.
Theft Recovery or Deterrent System
If you have an alarm or theft recovery system in your vehicle, you may be able to get a discount off your comprehensive coverage. The cost of installing an alarm will likely outweigh the advantages of this discount. This discount is mainly worthwhile for those who have purchased cars with an alarm or theft recovery system already installed.
Remember to look at your overall policy thoroughly for possible discounts and options you might not need. With proper research and time, finding the lowest auto insurance rates is not an impossible task.