But you know what's interesting? No matter how many commercials we see from companies like Geico and Progressive telling you to shop around and get the best rate, no matter how many of those commercials we see, 90% of the people never shop.
Make sure that you're not one of those people. You work long hours and you don't want to throw away money on the table that you could save on your auto insurance. You can save lots of money -- hundreds and maybe thousands of dollars a year -- just by making a few phone calls and shopping around.
Now, the Insurance Research Council says that if you shop around, you can save nearly $900 a year on your auto insurance. Think of all the things you could buy for $900 a year.
Where should you start? Well, call your insurance company and asked them if you qualify for any of the different discounts that they offer. I'll bet you you don't even know all the different discounts you could get. Of course there are auto insurance discounts for things like having a good driving record, but did you know that if you're a student and you have good grades, you can even get a discount for that? Now, it may only amount to 2-5%, which doesn't sound like a lot. But think about how much you are paying for auto insurance. Suddenly, a couple of percent here and there does add up.
The biggest discount comes if you've got a good, accident free driving record. That alone can be worth up to 20% in discounts per year in savings. But as soon as you get a single ticket -- there go the discounts. So be careful.
And speaking of tickets, make sure you know how many points you have on your license. If you don't remember, call the Department of Motor Vehicles and have them look up your record. And if you have more than 3-4 points, you might qualify for a discount simply by taking a safety class. Now many car insurance companies will sponsor classes to promote safe driving and sometimes you can take those classes and reduce your insurance costs. We're not talking about a lot of your time -- maybe one day or four or five hours over several days. Most of the classes cost a little bit of money but not too much -- maybe $20-$50. But that's a small price to pay in order to get a substantial discount on your car insurance.
Of course it should go without saying that you need to shop around every couple of years. Look around, compare prices. Even though you believe your current auto insurance company is the best one, things change.
Your rates also depend on where you live. If you've moved or if you're planning to move, shop around for auto insurance. Your car insurance company might offer a completely different rate for the city you're about to move to.
So that's the reality on saving money for your car insurance. Shop around and compare prices. And of course, drive safely. It really pays.
Car insurance is one part of our family budget that we will always have to deal with and so it behooves us to get better informed. We would all love to buy some form of discount car insurance. The reality of that already exists. There are more discounts in car insurance than ever before. Some of the newer vehicles have so many of them that they are often cheaper to insure than some of the older vehicles. Let’s review some of the discounts available when purchasing car insurance.
Multiple Policy Discount – This one is common and yet there are many people that do not take advantage of this discount. This discount can be as high as 15% with some companies.
Good Driver Discounts – Insurance companies love to reward the driver that has an excellent driving record. These are profitable policyholders and help bring the over all rates down.
Auto Safety Features Discount – Automobiles with airbags and seatbelts receive lower rates. Anti-lock brakes and anti-theft devices also lower car insurance rates. The vehicle identification number will identify all of these features and so it is important to give that number to whoever is quoting your car insurance.
Young Driver Discounts – Many companies give substantial discounts for high school and college students that have a 3.0 grade point average or better. The drivers training discount has been a standard discount for young drivers. Find a company that has both and you will help lower premium dramatically.
Senior Citizens Discounts – Drivers 55 and older are given retirement discounts if no longer employed. Homemakers can qualify automatically at age 55 with some companies. Mature driver discounts are also available when a driving course is completed.
Lower Tort Option – There are some states that have a lower or limited tort option. This is your ability to sue for pain and suffering. The lower tort option limits your ability to sue but at the same time it can save you 20% or more in your premium. Contact your agent or insurance company about the tort laws in your state.