How To Get Discounts On Auto Insurance (And Stay On Budget)

There are lot of different auto insurance discounts you could qualify for, but you probably ignore how to access each one of them.

As a result, you end up getting policies that do not usually fit your expectations, or even your budget.

If you relate to this, let us remind you that you can still do something to adjust your policy according to your needs.

Here is some valuable information that could help you determine how to get discounts on auto insurance.

Know the Available Discounts

Of course, insurers, as any other for-profit firm, are in business to cash from consumers and survive in the market. Therefore, most insurers aren’t going to give you discounts unprompted.

Most insurers engage in price optimization, which refers to how much an individual values a product or how much of an increase in price they will find acceptable before switching.

Hence, the price of your premiums may be related to affordability rather than how risky you are as a customer.

Next time you get quotes for car insurance or renew, you should first find a list of savings and discounts from any available source. Focus on the ones that might be relevant to you and discuss them with your agent.

A good advice is to focus on the discounts and savings that offer the largest savings, such as bundling and/or adding several vehicles to a single policy.

In some cases, the discounts may only save you a few dollars per year depending on your budget. However, if you put all the discounts together, you may save a significant amount of money.

Look for Discounts Every Year

It is a good idea to hunt for new discounts every year, even if that supposes switching auto insurance companies. Believe it or not, there is no significant correlation between loyalty and additional savings.

According to a survey conducted by Consumer Reports, about 50 percent of the insurers in the state of Washington gave zero discounts to consumers who had been with them for 15 years.

Loyalty discounts differ significantly by state and company. The only way you can make sure you’re getting the best deals is by comparing quotes whenever you change insurers or renew.

Keep in mind that the key to saving money is not always getting discounts. What matters the most is the final price. Even if a company doesn’t offer many discounts, their final price may still suit your budget.

Overall, you should stick with the company that offers you the lowest price. You may end up paying more if you stick with the same company for a long time. Look around even if you bundled all your insurance.

Before you start comparing prices, you should check whether you qualify for special discounts after being a member of a certain group. Some insurers offer special rates for individuals serving in the military or people who are veterans.

You can also save even more money if your union or employer has a deal with a particular insurer or you are a member of a certain club.

In many cases, these affinity discounts are the largest available. You can save up to 25 percent for your premium. This doesn’t automatically make affinity discounts the best deal available.

For more information about how to get discounts on auto insurance, do not hesitate to contact your agent or browse online for new options.

SEE ALSO: The 4 Most Expensive Auto Insurance Rates for 2019