Saving Money On Automobile Insurance

We all want to save the most money possible on automobile insurance. With gasoline prices and repair costs becoming more expensive, the last thing that any of us wants is to be faced with an enormous bill for automobile insurance. So, what can the average driver do to reduce the cost of purchasing insurance? There are several methods of reducing this expense, but perhaps the best kept secret in the industry is the fact that automobile insurers offer discounts to their customers. These discounts reduce annual premium costs to policyholders just like you.

Though these discounts are available, insurance companies don?t offer them right away and to receive these benefits you more likely than not need to inquire about them. It is estimated that on a yearly basis, insurance companies collect millions of dollars on premiums they would not receive if their customers took advantage of all discounts available to them. Therefore, here are a few suggestions on how to save on your premiums. Never forget to inquire is these are available to you because they change depending on where you live and what company provides your insurance.

The first discount you should ask about is the no claims or renewal discount. This discount, which is perhaps the most widely known discount, is offered to drivers with a clean insurance claims record. So, over time, and up to a delineated amount, your percentage discount will increase, so long as your insurer has not paid any claims on your behalf. Another important discount to ask about is the anti theft device discount. Auto theft in this country causes the insurance companies to pay out hundreds of millions of dollars a year for claims. Any device or mechanism that reduces the probability that your automobile will be stolen may result in a discount to you because the risk of a theft claim is reduced.

The better you are at driving, the less likely it will be that you have an accident. Therefore if you have taken advanced driver training classes, this may be a great way to lower the price of your premiums; especially if you?re a younger driver.

Often, the premium discounts associated with advanced driver training and anti theft devices are so significant that the cost for obtaining the training or devices is covered, sometimes several times over. Yet another discount that you should inquire about is the multi policy discount. The insurance companies are for-profit companies and want as much of your business as they can obtain. For this reason, many will offer a discount if you obtain your automobile and homeowners? insurance through the same carrier.

Similar to the multi policy discount is the multi vehicle discount. If you utilize the same insurer to provide coverage for more than one vehicle, you may be entitled to a discount. And, if you drive your vehicle 5,000 miles a year or less, there is a low mileage discount to which you may be entitled.

These are just a few of the discounts offered. When considering discounts, remember that the insurers will typically reward you (in the form of reduced premiums) for anything that reduces their likelihood of a claim or that increases the amount of business they do. However, because discounts are not always offered up front, it is important to be proactive and ask for any that you believe you might be eligible to receive.

Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance Options.