In today's tightened economy saving money is, if not almost a religion, at least something that just about everyone has a vested amount of concern and interest in. There are many things in life that you can just cut some corners to be able to save big bucks on. Your auto insurance, however, isn't one of them.
Many drivers make the mistake of lowering their coverage levels (or dropping their insurance altogether) in the interest of bringing their premiums back into their budget. Unfortunately, the only thing that results in is leaving them wide open for even greater losses when they're out on the highway!
If you really want to be able to save big bucks on your auto insurance rates there's only one word you need to know: Discounts. Discounts are the bread and butter of the auto insurance industry when you're looking for ways to save money on your coverage. And because every company is different, what saves you twenty or thirty dollars a year can save you over a hundred with another.
Common auto insurance discounts include (but aren't by any means limited to):
1) A good driving record. You knew it was coming, so we may as well get it out of the way from the beginning! Your driving record is one of the first things auto insurance companies look at when they're trying to determine your rates. It's proven fact that a driver that's been in one accident is more likely to get in another one down the road-and to have to file an insurance claim because of it. They make up for the anticipated cost of these insurance claims by raising your insurance rates.
2) Safety and security features on your car. You'd be amazed at how much simple things like anti-lock brakes, airbags, fuel switches and automatic locks can save you when it comes to your insurance. Anything that makes your car more immune to accidents and the thieves that go bump in the night is going to save you big time on your auto insurance rates.
3) Believe it or not, who you are and what you do can save you money on your insurance. Statistically speaking, teachers and engineers have fewer accidents each year and, as a result, pay significantly lower auto insurance rates. You can also save money if you have a respectable credit score, live in a rural/suburban area (as opposed to the middle of Los Angeles!), get good grades in school and are between the ages of 25 and 52.
4) What kind of car are you driving? When you get a chance, visit the National Highway Loss Data Institute website and see where your car falls in terms of relative risk. Auto insurance companies check these lists regularly, and they're going to use the information they find to determine how much you're going to pay for the privilege of being insured. Don't you think you should know at least as much as they do?
5) How often do you drive? The amount of time you spend on the roads is going to have a huge impact on the amount you pay for your insurance. If you don't have a huge commute to and from work every day you're not going to pay nearly as much as you would if you spent hours a day stuck in rush hour traffic.
It's not as hard to save money on your auto insurance as most people think. Nine times out of ten, it's all about knowing where to look, what to ask and, most importantly, what's going to do you the most good.
