Recession Era Car Insurance: Get Aggressive About Discounts
In these tough economic times, cutting expenses isn’t just good sense, it’s a
must. Drivers can’t do without car insurance; the law won’t let you. But there’s
no law that says you have to pay through the nose when
insuring your auto. When you
start looking for an auto policy, remember these key points to do some deep
“discount diving.”
Not all discounts are obvious.
Everyone knows that insurance companies
like things like passive restraint systems and anti-theft devices, but most
customers don’t know that in assessing risk, insurers also look at education and
employment. People in the science and math fields, as well as engineers, have
the lowest risk profiles and can actually get discounts of 10 to 30 percent on
their policies. The same is true for educators, which is fairly common
knowledge, but farming is the next lowest associated risk occupation. Bring it
up. It never hurts to ask.
Service and experience are valuable.
Active duty and retired military
personnel are eligible for discounts of 2 to 15 percent. (Service men and women
who are going overseas can also decrease their coverage on stored vehicles.)
Retirees often qualify for discounts of up to 45 percent if they have a good
driving record and are members of AARP.
Buying in volume works for insurance too.
Taking out more than one type
of insurance policy with the same insurance company is sure to garner discounts.
Look for family rates if multiple drivers are to be insured, and ask about
special programs for teen drivers. Some companies have new insurance products
that will lower rates for drivers in this high risk category if a GPS tracking
device controlled by the parent is installed on the vehicle.
Defensive driving isn’t just for when you get a ticket.
Often policy
holders who will agree to take a defensive driving class will qualify for lower
premiums. Now these courses are available online or via DVDs that can be rented
in most video stores, minimizing the inconvenience. These days, the few hours
spent on the course are well worth the dollars saved.
By aggressively
seeking out little known discounts, being prepared to comparison shop for
coverage, and not shying away from negotiation, insurance customers can reap the
benefit of big savings. In the midst of a recession, when you’re lucky to be
able to meet the car payment, there’s no reason to pay unnecessarily high rates
for your auto policy.
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