- One Company, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you may be paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.
*TIP: Talk to your agent about multi-policy discounts.
- Good Driver, Good Price? – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however. If you have a spotless driving record, there’s no reason you shouldn’t pay the lowest price a insurance company has to offer.
*TIP: Make sure you’re getting the best discount for your driving record. Talk to your agent. And remember, be a safe driver. It will save you money.
- Discounts for Taking Mass Transit – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.
*TIP: Some drivers should consider mass transit. Remind your agent that you are NOT driving to work so you receive the appropriate discount.
- Low Annual Mileage, Lower Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
*TIP: If you drive less than the average, you could be eligible for low-mileage discounts.
- High-Profile Vehicle Means Higher Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.
NOTE: To get detailed information on any vehicle(s) – contact the Insurance Institute for Highway Safety.
- Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. The lower the deductible you choose, the more you pay. If you have assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim.
*TIP: If it’s been years since you've been in an accident, you may be better off raising your deductible and paying less each year for insurance.
- Drop Unnecessary Coverage – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverage. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.
*TIP: As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. The cost of the coverage is probably greater than the benefit. How much is your car worth?
- Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.
*TIP: Make sure you are taking advantage of all the discounts available to you! Ask your agent if there are any discounts that you are NOT currently receiving.
- Taking a Drivers Training Course – Many insurance companies also offer discounts to those who have taken driving courses recently. If you have taken one or were thinking about it, make sure you tell your agent.
- Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.
- Credit Where Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.
FACT: Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. You should talk to your agent to make sure you have the best situation given your credit record, good or bad.
- One Call is All it Takes Sometimes – Every so often call your agent. Ask if there are ways he can reduce the cost of your auto coverage. Many times, if an agent doesn’t hear from a client, they will assume the client is satisfied. Whatever your driving record or coverage needs, you should shop around for the best deal for you. There are literally thousands and thousands of coverage options from hundreds and hundreds of insurance companies.
In addition, not only should you try to get the best deal you can, you also need to make sure you have all the coverage you want and need. Using an experienced, personal insurance agent is usually your best bet to get the most value for your auto insurance dollar.
The Bob King Agency takes a personal interest in our customers. We like to share important information to help you protect yourself and your family from financial loss. If you have any questions, regarding this information or your insurance coverage, please contact our office today. www.BobKingAgency.com