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AUTOMOBILE INSURANCE -
Getting Discounts (continued)
2. Driver discounts.
a. Make sure you are getting the correct rate for your age. There are discounts for various ages that can save a lot of money.
b. Safe driver discounts are available if you have a good driving record.
c. Sometimes insurers give discounts to people that are in certain professions that are considered low risk, or people that hold a certain type of degree. Or perhaps an association you belong to or where you went to college or where you work will earn a discount.
d. If a young driver is being insured, some companies give discounts if the driver belongs to certain organizations, like the Eagle Scouts, etc., or can show they are a good student. Also, if the student is away at school and is not driving much they may receive a discount. You may also be eligible for a rebate if you are away on vacation for more than a month and will not be driving your car. Call your agent.
e. Sometimes participation in driver training courses or drug and alcohol awareness courses earns you a discount.
f. And like everything else, if you have a good credit score you may be able to buy insurance at a lower cost.
3. Combination policy, loyalty and payment discounts.
a. If you insure your home and vehicle with the same insurer you should receive
a multi-
b. Insuring all the drivers and vehicles in your family under one policy will result in a lower premium than insuring them separately. Although there is one large exception to this rule. If you have a young driver in your family, or someone with a poor driving record, and they are an adult with only limited assets, and no claim on your assets, and they own their own vehicle, it may be far less expensive for them to secure their own insurance policy with minimum coverage amounts, rather than including their risk in your policy that has broader coverage. While their policy will be expensive, the expense will be somewhat limited because of the minimum coverage limits contained in their policy. If they are included under your larger coverage limits, your premiums may increase substantially. But if they do have their own policy, do not let them drive your car or you could have a problem if they have an accident. As an alternative, designate the driver that is young or has a poor driving record as the primary driver of your least expensive vehicle to save somewhat on premium costs. Make sure to check with your insurance agent to see if having a separate policy, or designating a particular vehicle for someone who is young and/or has a poor driving record, makes sense.
c. Many companies will provide a discount based on being a long-
d. Check with your insurance company if they offer discounts for annual or semi-
Although automobile insurance companies are regulated by your state insurance commission, their rate structures vary widely. So, it pays to shop around for the best rates, which could easily save you hundreds of dollars annually. When shopping, keep the following in mind:
1. Meet with two or three of the major automobile insurance companies such as State Farm or Nationwide.
a. Work with these companies to figure out what types and amounts of coverage are right for you.
b. Once you decide what coverage you want, get a quote from each of the companies based on this coverage.
2. Using the coverage descriptions discussed above, contact other major insurance companies and get a quote. If you qualify because of prior experience in the Armed Services, make sure to contact USAA to see what they have to offer.
3. Using the coverage descriptions, contact two or three independent insurance agents to get quotes. Independent insurance agents generally represent several different less well known, but reputable, insurance companies that may offer better pricing.
4. Using your coverage descriptions, go to the Internet and apply for coverage with some of the better known insurance companies that sell over the Internet to get a rate quote. You may also want to visit sites like Insurance.com where several insurance companies are represented, and rates can be compared.
5. Now that you have decided what types of coverage and amounts you want, and have found a lower priced insurer that you like, consider the following before making a final decision.
a. Because of state regulation, it is rare that an insurer will fail and not be able to pay your claim, but it does happen. So if you have decided to deal with a less well known insurer, and they are represented by an independent insurance agent, have
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