The most common Question:
How can I reduce my automobile insurance premium?
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Answer: There are a number of ways to do this, but here are
some obvious methods:
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| 1. Drivers Education Course. Take a Drivers Education Course (particularly applicable for teens and young adults) and can be worth up to 15% off all of the coverages your driving affects. |
| 2. Accident Prevention or Defensive Driving Course. Take an Accident Prevention or Defensive Driving Course. The course is usually 6 hours long and is worth 10% off all of the coverages your driving affects. The National Safety Council will provide more information on locations and availability. |
| 3. Passive Alarm System. Install a passive alarm system…one that arms itself soon after you close the door and requires no intervention and has an audible siren. Passive alarms can apply to a 15% discount to your comprehensive or other than collision coverage. |
| 4. Vehicle Recovery system. Install a vehicle recovery system. Commonly known as "Lo-jack", vehicle recovery systems are activated when your vehicle is stolen, allowing police to track the location of the vehicle. When combined with Passive Alarm Systems, the discount on your comprehensive can increase by as much as 25%. |
| 5. Higher Deductible. Opt for a higher deductible if you can. Most policies have a standard $200-$250 deductible on comprehensive and collision. Today’s higher priced vehicles are more expensive to insure, thus higher deductibles ($500, $1000 or $1500) bring greater savings. Make certain you can afford the increase in deductible before making the change to your policy. |
| 6. Multi-car discounts. Go for Multi-Car discounts. Combining two or more cars on the same policy can reduce your premium by as much as 25% per car. This of course varies by company. |
| 7. Multi-Policy discounts. Get Multi-Policy discounts when possible. Placing both your auto and home insurance with the same company can often bring a 5-10% discount on both policies. This again varies by company.. |
| 8. Claim Free. Try to remain claim free for three or more years. Many companies offer a discount of 5% to policyholders who are claim free during the prior 3,4 or 5 years. If you are claim free, inquire about the availability of the discount. |
| 9. Common sense on vehicle value. While many people carry full coverage on a vehicle that has little or no book value, you don’t have to be one of them. If your car is worth $700 and you pay $300 per year for Comp & Collision with a $500 deductible, the car is a total loss in a small fender bender. You would get about $200 after your deductible, but have already paid $300 in premiums…thus a $100 loss. |
| 10. Collegiate Discounts. If you are a collage student with a high GPA, many companies will reward that effort with discounts to students away at school. Check with your agent. Similarly, if you are a college student more than 250 miles from your home and you have not taken your car to school with you, then your parents policy may be eligible for a discount. |
11. Job change. Your premium rate is made up of a number of factors. The distance to and from work has a bearing on the rate. So, if you change jobs and now work closer to home, your premium could change. Similarly, if you are now retired, you should be qualified for a substantial discount. Check your policy or ask your agent.
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