Discount Auto Insurance Reduces Your Coverage Costs

2007-03-08 10:33:40

( Insurance )



When you shop around for low cost car insurance, you want to get the best rates. It is best to look for companies that discount auto insurance premiums. You should try to compare auto insurance costs – only one-third of car owners do that and they save a lot on their premiums for doing so.

Auto insurance premiums are based on factors like your age, sex, marital status, driving history, place of residence, car usage, make and age of car. You should ask the company to discount auto insurance quotes for various reasons: an accident-free driving record, defensive driving training, insuring more than one car. If you are a student, you can even cite good grades as a reason for discounts.

Companies also consider group-related factors in giving discount auto insurance premiums. If you use a carpool, you’ll be given credit for that. There are companies that specialize in coverage for certain groups like doctors, executives or government employees only. The specialized underwriting allows them to cut their losses and reduce operating expenses, which then translate into low cost car insurance premiums.

It is also good strategy to determine the coverage you need. Most people make the mistake of being under-insured on liability coverage (bodily injury, property damage, medical payments) and being over-insured on collision and comprehensive coverage (theft, fire, vandalism, flooding and the like).

When you compare discount auto insurance incentives, you’ll find that if you are willing to shoulder a higher amount of deductible expense, your insurance cost will go down significantly. If you request a five-hundred-dollar deductible, for example, you may save as much as thirty percent on premiums for comprehensive coverage and one-fourth on collision coverage, compared to a one-hundred-dollar deductible. This discount rate may vary widely from company to company so it makes sense to compare auto insurance practices in at least three companies.

You gain a lot of benefits by looking for as many discount auto insurance incentives as possible. It is easy to reduce your overall cost by a quarter, for example, by qualifying for just three discounts.


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