6 Ways to Find Discount Auto Insurance Rates

There are six ways to find discount auto insurance rates without sacrificing quality and great service. If you need new coverage or want to change providers, these simple tips will help you succeed.

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Looking for ways to cut your auto insurance rates is easy if you have the correct mindset and expectations. ConsumerReports.org shows how, over all, premiums continue to rise more now than they did in prior years. Historically, the national averages increased approximately 1% every year. Sadly, this is changing.

Stay Informed

To stay ahead of current market developments, you will need a basic knowledge of how coverage works, and you’ll need to do some investigating to learn about available savings. Certain eligibility requirements apply, and not every driver has access to all discounts. However, once you learn about the different offers, it is easier to see how you qualify.

Start by having a realistic outlook. Although most auto insurance providers have a number of bargains, they generally apply to people with excellent driving records. They prefer to give specific discounts to careful consumers; in other words, low-risk.

It is very unusual for a car insurance company to give rate reductions to people who do not respect driving laws and state regulations.

For this reason, if you have a spotty record, the first thing you should do is look for ways to clean up anything negative.

Apply For Safe Driving Reduction

One of the fastest ways to receive a huge reduction when shopping around is to verify your safe driving habits. If you qualify for this discount, you could see as much as 30% fall off your annual premium. Unfortunately, many people think they meet the criteria, only to find they have something on their record that makes them unsuitable.

Verify your driving record with your state’s Department of Motor Vehicles by obtaining your driving record abstract. According to the Wisconsin Department of Transportation, you can request this information and review the history going back three years.

You can see if you have any points and violations from other states. Some states have lengthier reports, depending on your infraction, particularly if the report contains convictions.

Violations in other states are difficult to determine because it takes time to transfer the specifics to your state. Some people travel from one state to another frequently, especially for work. If you committed a violation in Pennsylvania, for example, but you reside in New Jersey, you may not receive notification for at least 30 days.

Nevertheless, this does not mean the car insurance company does not have access to the information; they do. They have the authority to communicate with the Department of Motor Vehicles to gain access to your record as soon as you apply for coverage.

Perhaps you already know you have points on your license, but do not have the exact date they expire. This is another reason to obtain your abstract. If you have this information, you can participate in a state-sponsored driving program for removal.

If you complete the course according to the guidelines, you can report to the DMV and request they take the points off. This will work in your favor and may allow you to receive the discount.

Get in Shape

If you start walking instead of driving your car everywhere, you can easily reduce your annual mileage. This can qualify you for low-mileage reductions of a minimum of 15%.

These days, so many people do not even think about the distance of their journey but rather just hop in the car and go. If you live in a rural area, perhaps this is understandable. However, if you reside in the city or a large, metropolitan area, everything likely is within an acceptable walking distance.

You may want to start getting out more and relying on your feet to take you places. This will actually save you money in auto insurance and gas. However, keep in mind that your savings will vary from state to state, as premiums differ by region.

The U.S. Energy Information Administration shows a constant rise in gas prices, and it does not appear that things will change anytime soon. You can eliminate hundreds of dollars each month if you leave your car at home and get moving on foot. If you have a bicycle, this is even better.

Look for Employee Group Benefits

Many companies offer special benefits to their employees; one of these just happens to be low-cost car insurance. Larger corporations often receive massive discounts because they have a huge headcount. This means you could already have access to cheap coverage.

Check your employee handbook to see what kinds of offers you qualify for, and then go to your personnel or Human Resources department. Ask them what you need to do to get started.

They probably already have the correct paperwork ready for employees. The key is to inquire. Everyone is busy, so they may not have the opportunity to be proactive. If you already know what you want, just ask and they can help.

Reconsider Staying Loyal

According to Cvent, a research and development company, companies that focus on customer retention fare better than those who constantly seek new customers. This could certainly work to your advantage.

Instead of looking for a new auto insurance provider with discounts and rate reductions, consider concentrating on your current car insurance carrier.

You could wind up saving much more than you would with a company that does not know your history.

This is especially true if you really like everything else except the prices you receive. If the auto insurance company has great options and customer service, you should give them a chance to win your loyalty back.

Most successful companies evaluate their customers using surveys. They review the feedback and place them into three categories: promoters, passives and detractors.

Using a formula, they calculate the number of promoters and passives. These customers feel the best about their company and give the highest scores.

They divide the total by the number of detractors, or people who have negative feelings and the highest likelihood of switching. The majority of detractors are unhappy with several aspects of the company, including their rates.

By placing their efforts toward those who have the most negative responses, they can begin rebuilding their relationship. They may offer incentives and rewards if the customer reconsiders his or her decision to leave. This is where you come in.

It is much easier to negotiate your current auto insurance premium with a great history of five years or more.

This means you should make timely payments, report few claims and keep a clean driving record. If this describes you, contact your car insurance company immediately.

It may be beneficial to escalate your inquiry past the front line because they seldom have authority to re-work your policy, but a manager or higher level personnel surely has this power. If necessary, contact their corporate office, send emails and keep a good record of all your conversations.

Above all, remain patient and polite. Remember, you have everything they want and need in a customer. The odds are in your favor that they make positive changes to save you money and retain your business.

Store Your Vehicle

If you think back to your application, one of the questions you answered probably involved storage options. The inquiry most likely had to do with overnight parking.

This is because people who have a secure garage or storage facility have a lower probability of theft, and thus can receive lower auto insurance rates. In addition, there likely would be less damage from severe weather, which otherwise would lead to comprehensive claims.

Look around your neighborhood and place of employment. Is there a covered area where you can park overnight? If so, you can save at least 10% to 15% off your annual premium.

Negative Implications from Too Many Damage Claims

When you have an accident that does not involve another driver or someone’s personal property, you need to consider whether you should file a damage claim or not. It could be something minor like a dent in your fender or broken windshield. A low deductible could encourage you to seek compensation from your car insurance company.

Unfortunately, if you file a claim, it goes on your record — not your driving record, but your insurance record. Sadly, many people do not know they even have an insurance record. This is why you should understand the importance of the Comprehensive Loss Underwriting Exchange, or CLUE, report.

The insurance industry regularly uses the CLUE report to assess risk. The report — which includes all types of claims, including automobile insurance — works against anyone who files a damage claim because car insurance providers use this information to decide if they raise your rates or not.

Each time you file a property loss claim with your car insurance company, they incorporate the details into a database, which creates a report under your name.

It remains on record for five years and shows the date of the claim, the kind of loss and the payment from your carrier.

Over the next five years, every auto insurance provider has access to your record when you complete an application. Depending on the number of claims, they can decide to increase your insurance rates. In addition to your actual claim, the report captures inquiries to your current car insurance provider.

In other words, even if you do not receive a claim payment, they continue to pass the report of damage along. This goes in your report as well. It is extremely important, therefore, to reconsider a frivolous claim and only contact your auto insurance company when necessary.

Five years is a long time to wait for clearance. You could spend hundreds or thousands of dollars in excess, just because you reported the issue.

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