Cheap Insurance for Your Home, Automobile, Health, and Life How to Save Thousands While Getting Good Coverage by Carla Rowley & Lee Rowley

Author:Carla Rowley & Lee Rowley
Language: eng
Format: epub
Tags: insurance, inexpensive, cheap, low cost, health insurance, automobile insurance, life insurance, home insurance, coverage
Publisher: Atlantic Publishing Group
Published: 2014-01-16T00:00:00+00:00

Chapter 16: Using Discounts to Save Money on Automobile Insurance

Aside from keeping a clean driving record, one of the best ways to save money on automobile insurance is to make sure all applicable discounts are applied to your quote or policy premiums. Although some agents will tell you about all the available discounts to help you reduce your premiums, there are many less experienced agents who may not alert you to all these discounts. It is a good idea to ask about each discount you believe you may qualify for. You may have to provide documentation to receive some of the discounts, such as an anti-theft device discount for a device installed after the car was manufactured, but the money you save on your automobile insurance is worth the trouble of obtaining the documentation.

Here is a list of discounts that many insurance companies offer on their automobile insurance policies. Not every insurance company will offer every discount, and there may be additional discounts mandated by your state.

Airbags. Your insurance company may provide a discount if your motor vehicle has front airbags and may provide an additional discount if the vehicle has side curtain airbags. This discount runs between 5 and 10 percent off your policy premiums. Since all vehicles manufactured since 1991 have airbags, it is likely that insurance companies will stop offering this discount over the next decade. Insurance companies verify whether a vehicle has airbags and the type of airbags from information derived from the Vehicle Identification Number.

Anti-lock Brakes. If your motor vehicle is equipped with anti-lock brakes, you may be able to obtain a 5 to 10 percent discount off certain policy coverages. Insurance companies verify whether a vehicle has anti-lock brakes from information derived from the VIN.

Anti-theft Device. Many companies offer a discount if your vehicle is equipped with an anti-theft device. Some companies offer different levels of discounts for different types of anti-theft devices, based on data that indicates how effective each type of device is at deterring vehicle thefts. Depending on the type of anti-theft device your vehicle has, you could save as much as 15 to 20 percent off certain coverage premiums.

If your motor vehicle came from the manufacturer with an anti-theft device installed, your insurance company should be able to verify this via information contained in the Vehicle Identification Number. If your anti-theft device was installed after the vehicle was manufactured, you may need to provide your insurance company with proof that the device was installed, such as a copy of the sales and installation receipt from the company that installed your anti-theft device.

Claims-Free Renewal. Your insurance company may provide a discount for each successive policy term during which no claims were submitted for payment under your policy. This discount accrues over successive policy periods, so the longer you keep your insurance policy without submitting a claim, the higher your discount will be.

If you do submit a claim for payment, you may lose all claims-free renewal discounts you have accrued before the claim.

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