Do You Qualify: Common Auto Insurance Discounts
Saving money on your automobile insurance is like adding money to your paycheck. Your auto insurance premiums are necessary if you want to drive on the road, but that doesn't mean you should pay top dollar for coverage. Common automobile insurance discounts will save you money without sacrificing the quality of coverage you're getting.
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Combine Policies
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If you have several insurance policies, try combining them. Insurance companies may offer you a combined policy discount if you carry at least two insurance policies with them. For example, if you purchase a homeowner's policy and an automobile insurance policy, ask for a discount on either one of these insurances. Your company may give you a discount for one or both. Even if the discount doesn't apply directly to your automobile insurance, the total insurance premiums you pay are lower, thus offsetting a portion of the automobile insurance premium.
Drop Collision and Comprehensive
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If your car has reached its salvage value, you are probably safe in dropping comprehensive and collision insurance. This is especially true if you don't have a long record of automobile accidents and the cost to keep the vehicle insured under comprehensive and collision would be more than what you would receive if you ever had to file a claim.
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Raise Your Deductible
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Deductibles are amounts that you pay before your insurance company will pay any amount of money on a claim. If your deductible is $0 or even $250, consider raising it. A $500 or even a $1,000 deductible could save you a substantial amount of money every year. However, if you do this, consider setting the amount of your deductible aside in a savings account, because you will need that money if you are ever involved in an accident.
Low Mileage Discounts
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You may be overcharged on a second vehicle you own, or even your primary vehicle, if you don't put many miles on it in a year. Insurers often base part of your premium rate on the number of miles you drive in a year. Ask your insurer about discounts for putting a low number of miles on your vehicle each year. Additionally, if you carpool, you may be able to take advantage of an additional discount.
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