Discounts, group-marketing programs, figuring out my deductible, and only buying the coverage I needed were some of the strategies I used to get a better rate on my auto insurance.
Insurance companies offer a variety of discounts for individuals. I was able to qualify for a discount for insuring multiple cars on my policy, a discount for having anti-theft devices, and a discount for completing a driver education course. The biggest discount is based on my driving record by qualifying for the highest merit rate in my state’s program. Bottom line, the safest drivers get the best rates.
Group Marketing Programs
I was able to join a business association approved by my insurer and reduce my rate by an additional 5 percent. Credit unions, motor clubs, unions, and other groups have programs that partner with a particular auto insurer and pass along a group discount to its members. These groups are easy to join. Just ask your broker to recommend a group to join and sign up.
Setting My Deductible
I was comfortable with choosing a higher deductible for my collision coverage, which dropped the cost for that part of my coverage by 38 percent. The deductible was an amount that I could cover out of pocket should an accident occur. Also, I was confident in this selection for two reasons, one, my wife also has the highest safe driver rating and, two; our deductible would be waived if we were not at fault for an accident.
Only purchasing the coverage I really needed equaled more savings and a reduced rate. For example, since my family is covered by health insurance there was no need to purchase coverage for medical payments. Did I really need the substitute transportation coverage? Again, not needed since another vehicle was available over the short term. Lastly, the most important piece of buying coverage is to get multiple quotes. I found that not all insurers offer the same discounts so prices did vary. By speaking with several auto insurer brokers I was able to receive competitive quotes before making my final choice.
At renewal time, I take a look at my policy to see if I need to make any changes. Adjusting deductibles, adding or deleting optional coverage and speaking with my broker are important in order to make sure I have the best policy at the best rate for the coming year.