If you own and drive a vehicle, in most states it's the law
to have auto insurance. You can shop around and compare
prices from various insurance companies, but you should
also ask about available discounts that could save you
money on your auto coverage. The following checklist
provides discounts you can ask about when shopping for
affordable car insurance, but the availability of discount
auto insurance varies by state and company.
Discounts for Safe Drivers
If you are a safe driver, and you have avoided having an
automobile accident or any moving violations for three
years, you may be eligible for a safe-driver discount.
* Accident free for three years
* No moving violations in three years
Discounts for Safe Cars
Many insurance companies offer discounts to policyholders
whose cars came equipped with certain safety features.
These features reduce the risk of injury and theft;
therefore, reducing the cost of auto coverage.
* Air bags
* Anti-lock brakes
* Daytime running lights
* Anti-theft device
Discounts for Students, Adult Seniors, and Others
Car insurance for young drivers is often problematic, but
full-time students who meet age and GPA requirements can
sometimes get lower auto insurance rates. These
qualifications vary by company and state. For example,
Allstate (www.allstate.com) requires full-time students to
be 25 years old or younger and unmarried to receive the
discount, but in some states, the age limit is 21. College
students who are at least 100 miles away from home are
often eligible for auto insurance discounts. If you're a
driver between 50 and 55 years of age, retired or a senior
adult, you may be eligible for discount auto insurance.
And, taking a driver training or defensive driving course
is another way you may qualify for a lower insurance cost.
* Student drivers with good grades
* College students away from home
* Drivers 50 to 55 years of age
* Adult seniors
* Driver training course
* Defensive driving course
More discounts
Other things that qualify for auto insurance discounts
include paying higher deductibles, having low annual
mileage, buying auto and home insurance with one company
and staying with one company long-term. Insurance
Information Institute (www.iii.org) suggests that
increasing your deductible to $500 could reduce your
premium by 15 to 30 percent. Increasing the deductible to
$1,000 can save you 40 percent or more. And, if you are a
low-mileage motorist, your insurer may offer a low-mileage
discount. These discounts usually apply to drivers who
carpool. Many insurance companies will give you a discount
if you buy two or more types of insurance from them, such
as homeowners or business auto insurance. If you have more
than one vehicle insured with the same company, you may
receive a multi-policy discount. Insurers sometimes reduce
premiums for long-time policyholders.
* $500 deductible
* $1,000 deductible
* Low annual mileage
* Auto and homeowners coverage with the same company
* More than one car insured with the same company
* Long-time customer
You might be surprised that so many insurance companies
provide all kinds of ways for you to receive discounted
auto coverage. Remember, though, the key to savings is
ultimately the final price, not the discounts.
----------------------------------------------------
Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.
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