- 22
- Oct
Its not always possible to save on auto insurance though some companies like to say that you can save 15% or more, if you will just give them a call. Still significant discounts from what you are currently paying are often, if not always, available.
The only way you can find out if you’re paying too much is by getting price quotes from several companies. There are lots of ways to save. But be aware that insurers calculate rates differently so you need to not only look around but also be sure to compare apples with apples.
The following four areas are things to consider if you want to save money on your auto insurance:
1. Existing Relationships – don’t forget to check with your current insurance carriers particularly companies that provide you with insurance other than auto insurance. The relationships you have with your current insurance companies can easily lead to preferred auto insurance rates if you are already an established client with non-auto policies like homeowners or life insurance.
2. Associations – Some organizations and groups offer opportunities for special auto insurance rates. For example, the Automobile Association of America is an association that saves its members millions every year on auto insurance. You might also check other associations that you belong to including professional organizations, alumni groups, companies and clubs. Often these organizations offer special discounts with certain insurance companies, obtained through group rates.
3. Behavioral Discounts – Many insurance companies offer special rates for “good behavior.” This might include factors such as a good driving records, and/or low accident rates. Further afield it might also include students with good grades and people that have taken drivers training courses. Every insurance company has a different idea of what constitutes “good behavior” and how that might affect their insurance rates. Be sure to ask what good behavior discounts your company offers.
4. Company Size – The size of the insurance company you use might also have an impact on your rates. Sometimes smaller insurance companies provide lower rates to a certain segment of the population or to people who live in a certain area, in an attempt to expand their customer base. Be sure to include at least one smaller company in your price quotation requests.
Comparing your current insurance rates with what other companies have to offer often pays big dividends. It may even be a good idea to do a price comparison every year or two since companies, markets, and economic conditions change rapidly from year to year.
The auto insurance industry is very competitive and if you look hard enough you can usually find some company willing to undercut its competitors rates in order to get your business.
If you liked this piece by Bill Brankar then you’ll appreciate his new website on general-auto-insurance where he discusses about how to get cheap-van-insurance among other things.
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