Wednesday, November 14, 2012

Discounts To Help Reduce The Price Of Your Auto Insurance

By Theodore Shaowen

Because of the high cost of auto insurance policies and the legal requirement of owning one, paying for insurance can seem more like an obligation instead of a means of protection against financial liability and loss. Even though auto insurance is a recurring cost, and an often substantial one at that, it is nonetheless important to get one. Fortunately, there are plenty of discounts provided by insurance companies to persuade you to buy policies from them or ensure that you will stay with them for a long time. Below are some of these discounts.

Good grades discounts This is a discount provided to students or young drivers. Insurers offer these discounts because they believe that students with good grades are usually more responsible road users and car owners, and thus not as risky to insure. To be eligible, you need to show evidence of good grades within a month-long period.

Defensive driving discounts High risk groups like new or teen drivers as well as senior drivers older than 75 can take advantage of lower premiums if they finish a defensive driving course. These classes are available in many high schools and private driving schools. Before you enroll in these programs, be sure to ask the insurer if they have preferred driving schools so you can be qualified for their safe driver deals.

Discounts from setting up anti-theft devices Adding safety or security devices to your car can shave off 15% to 20% off your insurance premium. New cars often come pre-installed with these advanced safety technologies, so this option is more appropriate for older cars or cheaper but new car models that do not come with these features. The safety device that will provide the largest price reduction is one that is utilized or endorsed by your local or state law enforcement bureau.

Maintain a clean driving record Among the different techniques to lessen insurance premiums, keeping a good driving history is perhaps the most effective. You can save up to 40% by not getting into any accident or any traffic violations. Insurance companies assign points to moving infractions and accidents to codify the seriousness of these events and determine how much of a risk you are to cover. These points will diminish in 3-7 years, making it doubly necessary to observe good driving practices.

No or Low down payment policies Down payment for insurance policies can be substantial. To secure the patronage of car owners, many companies offer car insurance with no down payment. However, make sure to study the fine print of these offers because more often than not, these still require some payment, usually a single month's premium. Sometimes, these insurance plans need you to pay a specific amount of money in a given period before your insurance coverage becomes effective.

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