When it comes to saving money on auto insurance, a few strategies have become common knowledge: keep a good driving record, drive a non-flashy car, and compare quotes from several companies. However, many people are surprised to learn about some other cost-saving strategies: paying as you go; buying different types of insurance policies from the same agency; and simply asking about additional discounts.
PAY-AS-YOU-GO AUTO INSURANCE
First, pay-as-you-go insurance enables people to cut costs by only purchasing the amount of insurance that they actually use. Those who drive less pay less – and they sometimes see 50% savings.
Pay-as-you-go auto insurance plans are designed for drivers with certain profiles. When a driver inquires about pay-as-you-go plans, the auto insurance agent will collect information about his or her daily driving routine. This includes information about where, when, and for how long a person drives. A driver who drives mostly during off-peak times (i.e., not during the morning and evening rush hours) is likely to be offered relatively low rates. Pay-as-you-go auto insurance thereby helps customers to avoid buying more insurance than they need. After all, people who drive during rush hour are statistically more likely to be involved in accidents.
Who else might benefit from a pay-as-you-go program? People who drive fewer than 15,000 miles annually can possibly benefit. These insurance plans are especially advisable for most teenagers since they are not likely to log many miles but fall into a pricey insurance bracket.
CHOOSING JUST ONE INSURANCE PROVIDER
Many families carry more than one insurance policy. Perhaps different family members use different auto insurers, or maybe a couple insures their home or boat with one company and their truck with another. In these cases, it is worth investigating whether a company will offer discounts in exchange for getting more business.
GETTING ADDITIONAL DISCOUNTS
Auto insurance companies offer additional discounts for many reasons. Discounts are commonly given for:
• Having a good driving record
• Earning a high grade point average (GPA)
• Having safety features on a vehicle
• Earning a defensive driving certificate
• Working in a low-risk occupation
• Customer loyalty