5 Ways to Lower your Car Insurance Premiums

December 11, 2008 by Marcel

Most people understand how to bargain for a lower insurance premium based on the equipment present on their vehicles. Do you have an air bag ? You can get a discount. Same for anti-lock brakes and anti-theft devices, but there are some lesser known options that can also save you money if you know how to ask the right questions or supply the right information to get cheap car insurance rates.

Level of Education Some studies indicate lower risk profiles for given degree holders, in particular those with degrees in engineering, science or math. Savings fall in the range of 10 to 30 percent when available.

Current Occupation Did you know that teachers and farmers have the lowest risk-associated occupations? Farmers might have to press the point, but it’s fairly simple for educators to score discounts of 10 to 30 percent.

Military Service Many insurance providers, including GEICO, give discounts of 2 to 15 percent to military personnel, both active and retired. An additional attractive option is decreased coverage levels during periods of deployment when the insured vehicle is placed in storage.

Age In general, people who are retired can avail themselves of a considerable level of discounts. Hartford, for instance, offers a AARP Auto Insurance Program with savings of as much as 45 percent. (Membership in AARP can benefit drivers in a number of ways regardless of the insurance company involved. Members should investigate this angle fully before negotiating their policies.)

Continuing Driver’s Training Defensive driving courses and other driver’s safety programs can be used to lower premiums with almost all insurers. Normally this is an option people look at after a traffic citation, but the classes can be taken at any time for insurance purposes. (Note that these classes can now be taken online or via CD or DVD.

Drivers should also remember to investigate procedure-based discounts like those awarded to multiple policy holders in a single family (husband, wife, and a teenage driver, for instance.) Family rates on premiums can lower costs considerably. Also, don’t neglect new programs offered by some insurers for teenage drivers when monitoring or GPS systems are placed on the car. Car leases may come with a substantially lower insurance premiums, but be aware that this option has become much more rare as automakers have been forced to retreat from leasing due to the current economic climate. Above all, insurance customers should conduct their own research and ask as many questions as needed to be comfortable with the coverage offered. Always comparison shop. Never be uncomfortable about haggling. Simply telling an agent that you’ve been offered a better rate by the competition can go a long way toward opening up the discounts you need to get the most affordable coverage possible. Just remember to shop around and request car insurance quotes from multiple providers…

7 Comments

California Man said

am December 14 2008 @ 11:03 pm

I thought farmers were in high-risk with all the accidents and horrid chemicals they deal with. I can see Teachers insurance being cheaper….unless they teach in East L.A.
Hardwood Tampa said

am December 15 2008 @ 3:00 pm

I cannot think why insurance would be lower for older folks. They seem to be in more accidents that others, besides teenagers. If anything, they need a hike to keep them off the road.
Finance Tips - sixwise said

am December 17 2008 @ 3:53 am

Thanks for sharing this tips. this is just in time because I’m planning to buy a new car and thinking if I should get a car insurance plan.
thanks again
charlesalex said

am December 18 2008 @ 1:59 am

Hai,
This site is so nice. thanks for the tips… i actually have to sign up for new insurance now. I cannot think why insurance would be lower for older folks. They seem to be in more accidents that others, besides teenagers. I thought farmers were in high-risk with all the accidents and horrid chemicals they deal with. Thankyou.
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Alex,
Make Money
Marcel said

am December 18 2008 @ 2:22 am

@charlesalex

Glad to see you enjoyed the article.
SSAS said

am December 19 2008 @ 11:16 am

The main factor to reduce premiums significantly is the no claims bonus. Others bring only a minor reduction.
Jerry said

am January 16 2009 @ 2:57 pm

I’m a bit embarassed as a veteran that I didn’t know about the discounts on your insurance at Geico for military folks. I’ll have to check that out. Drat! And, my German degree is going to do me no good in that regard. Well, it did lead to me whoo my wife with German sweet nothings. That’s gotta be worth something.
Jerry
http://www.leads4insurance.com