The way to find cheap insurance is to compare rates from different companies and agents in your state. Make sure you gather the pertinent information about you and your vehicle such as address, make and model of the vehicle etc. The fastest mode of comparing is through the internet but don’t forget the state insurance office. You can contact them and request a list of their most effective insurers.
Of course, asking your friends and family who their insurance agent is a tried and true method. Now armed with a reliable list of agents begin to assemble a list of discount questions to ask the agent.
There area nine categories in which you may qualify for a discount on your auto insurance:
1. Vehicle Usage – Low annual mileage or sometimes carpooling. They look at odometer reading and the distance between your work and your home or your school and your home. So, be prepared to have the required documentation for your insurance agent. The agent is looking for odometer reading and mileage records. Basically, the insurance agent is looking for under 10,000 miles per year and some states it’s as low as 5,000 miles per year.
2. Territory – Where the vehicle is parked determines a high or low premium. This is why the comparison market sites, ask for the zip code. The insurance company will look to see if this is a high risk zip code. He is looking at tables which tell whether or not there are frequent insurance claims filed from your zip code each year.
3. Your Driving Record and Renewal of Your Policy – Some insurance companies will reward policyholders, every year they renew their policy with a discount rate. This goes hand in hand with a good and safe driving record. A good rule of thumb is to go a few miles under the speed limit.
4. Marital Status – Married people can be eligible for a discount. Basically, insurance agents look at married vs. single, the length you are employed by the same employer. Statistics prove stability equals less accidents and overall less loss to the insurance company through claims – historically speaking.
5. Gender and Age – Students with a 3.0 or better grade average can be eligible for an insurance discount rate. Teenage drivers and senior citizens both can be eligible for an additional discount when they complete a state recognized driving course. An ounce of prevention is worth a pound of cure.
6. Multiple Vehicles – Insurance companies love the increased business when you insure more than one vehicle with the same company. It can save you in both time and money by insuring your vehicles in one place. The experts ask you to use your comparative market tools every six months or so to make sure the savings still warrants this decision.
7. Safety Devices and Anti-theft devices – Airbags, anti-lock brakes, automatic seatbelts and an alarm system are a few of the devices which may qualify you for a discount rate on your auto insurance.
8. Dividends – Are paid once the policy period expires. This option is found through mutual insurers.
9. High Credit Score – There seems to be a buzz about this one in the insurance market. Apparently, both the Federal Trade Commission and the Federal Reserve Board have placed their stamp of approval on the fact that credit scoring is a reliable tool for determining insurance premium rates. Even The Fair Credit Reporting Act supports and permits the use of credit scoring. The question has come up: Is this a form of discrimination? If interested, please check your state for its legislation or regulations regarding this curious issue.
Auto insurance discount rates vary from state-to-state. So please ask if you qualify for one or more discounts. You are free to shop your insurance rates at anytime. Periodically checking your rates against other A rated companies will insure you are getting the best auto insurance at the best possible price.
Shopping Around for Automobile Insurance
Discount Auto Insurance
February 10, 2012February 10, 2012 0 Comments