Tips on Discount Auto Insurance
If you're shopping for used cars to save money, the last thing you want to do is negate that savings by spending a small fortune on auto insurance. It's true that you have to have at least your state's minimum requirement in liability coverage, but if your car isn't leased or financed, collision and comprehensive coverage are technically optional.
Whether or not you choose to cover your newly-acquired used car comprehensively, there are four ways you can help reduce the amount you spend on an insurance premium, and all involve conscious decisions on your part, having to do with your driving style, your policy, your carrier, and your actual car.
The Car You Drive
What you drive has a big effect on what you pay for insurance. Just by selecting a used car, instead of a brand new model, you're saving something, but you can reduce your premium even more by avoiding sports cars and popular models (Toyota Camry, Honda Accord) because they all cost more to insure, even if they're not straight from the factory. This is partly due to engine size (sports cars) but mainly because high profile cars are more attractive to thieves.
Save money by choosing a older, lower profile sedan or station wagon.
You can also consider adding safety devices to the car you have, rather than trading it in, especially if you really love the used ragtop you just bought. Air bags, automatic seatbelts and antilock brakes all net you a savings on medical and un/under-insured motorist coverage, while antitheft devices like LoJack, alarm systems and engine immobilizers will save you money on your comprehensive coverage.
Your Driving Habits
Your personal driving habits can affect your insurance premium, especially if you choose a provider that offers pay-as-you-drive options. Driving less often can save you money even with standard insurance, however, because most insurance companies offer a "low-mileage" discount to anyone clocking in fewer than 14,000 miles per year.
Driving more cautiously will help keep your rates down as well. For example, drivers with no points in the last three years than drivers with even one. As well, the more speeding tickets you get within a single year, the more likely you are to be at fault in an accident.
If there are teen drivers on your policy, getting a safe driver discount is much more difficult, but if you and your teen take a defensive driving class, you may earn a discount there, and teens and college students who maintain a B average or presence on their school's Dean's List or Honor Roll also qualify for good student discounts. Finally, if your college student attends a university more than 100 miles from home, and leaves the car with you during school, there's a discount for that, as well.
Design Your Policy
For some drivers, the best way to compare auto insurance quotes is to rethink their coverage options. For example, if you drive an older car you might want to reduce your comprehensive coverage, since older cars aren't big targets for theft.
If you're in good financial condition, and can afford to pay for repairs out of pocket, you can increase your deductible, and see a resultant reduction in your premium.
As well, you can earn discounts based on your age, your job, your length of time with your insurer, and if you're a homeowner you can bundle home and auto coverage with one company and save money on both.
Finally, by putting your insurance payments on an automatic electronic payment plan, you'll save some cash, and if you agree to receive only electronic statements, you'll help the environment as well.
Shop Around
While many insurers offer discounts for customer loyalty, some also offer deals for new customers. If your renewal date is approaching, hit the Internet and do some comparison shopping. You may find that you can save money by switching carriers, because they're offering incentives, or have a program your existing provider does not. (Pay-as-you-drive, for example, is only offered by a couple of insurance companies at this time.)
Even if you're just researching ways to improve your deal with your current insurer, shop around. You might be able to get a bigger discount with your existing company by telling them what other insurance companies are offering.
One last thing to remember: Getting discount auto insurance isn't about finding a cheap insurance company and hoping they're reputable. It's about making minor alterations to the parts of your life that you can control, asking for discounts from the provider you already have, and making sure that your driving habits help you instead of hindering. By becoming a savvy shopper, you can get an amazingly low rate on your insurance, without worrying that the company won't be there the next morning.
