Saving Money on Your Auto Insurance

The cost of auto insurance just seems to keep on going up. With the price of fuel on the increase and servicing and labor costs seemingly higher every time you need to get work done, there has never been a better time to start making savings on your auto insurance. There are substantial savings to be had if you are prepared to spend a little time researching, and getting a good deal could save you a lot of money.

The first and most obvious way to save money on your auto insurance is to shop around. There are good deals to be had, as this is a very competitive market and the auto insurance companies want your business. It is not unusual for special discounts to be given to new customers, as the insurance company can make money through repeat business, when the original cheap deal runs out.

Insurance companies tend to rely on the fact that most people will just pay the renewal when it drops through the door, but this is one of the quickest ways to lose your money. If you just reinsure then they just process your check and bank the money. There is no need for them to offer any discounts or special incentives if you just hand your money over without asking. Always ask if there is a discount available and tell them that you are thinking of changing your auto insurance company.

If you are prepared to take higher deductibles on your auto insurance, then you can make considerable savings, over 35% in some cases, but before you ask your company for this discount you should think carefully. If you offer a higher deductible, then if you do have to make a claim, your award could be substantially reduced. Or if you have an accident then you may have to pay towards the amount. So although this is a good discount on your auto insurance, you should be aware of the possible downside.

If you also have insurance for your home, then it is sometimes worth asking your company if they supply auto insurance. Some companies will give a discount based on the fact that you have more than one insurance with them. This can make it all the more important to them that you to stay a customer. It is still a good idea to search the market, but sometimes putting all your eggs in once basket can be a good idea.

if you drive a limited amount of miles each year it is worth asking your auto insurance company about a “low mileage discount”. The less your mileage is then the lower the risk to the company, so they can offer considerably lower premiums for those who do not make regular use of their car. Bear in mind that if you do go over the amount of miles allowable in your auto insurance, then you do need to let the company know and you may have to pay extra to keep your cover.

There are many discounts available and a little research is all that’s needed and you could substantially lower your auto insurance premiums.



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