How to reduce auto insurance premiums

The Man

An incident-free driving history has a bonus by way of reduction in auto insurance premiums. Auto Insurance companies love good and safe drivers. The way good drivers are rewarded by insurance companies differs. Each company has its own rules and formulas. A lengthy safe driving record helps to get good driver discounts. The more time you have spent behind the wheel without any tickets or qualifying incidents the quantum of your auto insurance premiums also goes down. Taking safe driver courses also helps in keeping premiums down. Teenagers to seniors have different safe driving courses. Taking these courses reduces car Insurance premiums.

Mature Driver Insurance Discount course

If you are 50 and above sign up for an online $15.00 mature driver course and save 10% typically leading to a $300.00 discount in the premium over 3 years. The state of insurance laws provides a mandatory discount for completing such a course applicable to policies of all insurance companies. The discount is applicable to the liability, PIP, and collision aspects in your policy which constitutes more than three fourth of premiums. For 3 years no accidents where you are at fault, moving violations, the conviction should be incurred for this discount to be effective. In case you get a traffic ticket in the said period, another Basic Driver Instruction course should be taken so that the discount is not withdrawn.

What exactly is discounted?

The discount is for the liability (bodily injury and property damage), personal injury protection, and collision portions of your policy…typically around 70%-85% of your current premium charges. Uninsured motorist and comprehensive coverage are excluded.

The Machine

Safety features in a car like seat belts, airbags, theft prevention features, GPS tracking, anti-lock brakes gets you discounts. The vehicle you choose to drive comes with a certain safety footprint which is carefully vetted by insurance companies. Every year the IIHS (Insurance Institute of Highway Safety)releases data as to which make and model made it to the safe vehicle pick based on criteria. If you are in the market for a new car please check on the following link to see the make and models with the highest safety rating. The criteria and tests done to qualify the cars are also found on the site for more information. Here is the list of winners from 2016: You can also check test results for a particular make/model/vehicle type/size category here: A teenager who learns safe and responsible driving will keep your premiums down as well until the teenager gets his or her own Insurance policy. Plus continuing a safe driving habit will yield in low car insurance premiums. If your kids are good students getting a B or above, rejoice! There are auto insurance discounts to reward good grades. Belong to a certain fraternity or organization? Check them to see if they qualify for auto insurance premium discounts. Ask the agent if such memberships qualify. Multiple car discounts. While putting your teenagers on your policy can increase rates, you can bargain for a multiple car discount by insuring more than one car with the same auto insurance company. Clubbing auto Insurance with home insurance or renters insurance is another way to reduce car insurance premiums. Paying your premiums yearly or every 6 months, renewals, loyalty(need to check with the company) are other ways of getting a discount. You can even get a prompt payer discount depending upon the insurance company. Other discounts include alternative fuel, a hybrid car which may not be offered by all insurance companies. An important rule to remember about discounts is that you might be paying a higher premium even after getting a heap of discount. So due diligence comparison of quotes from several companies is a must. Take a minute and enter your information so you can get several quotes to compare from right here.