Everyone I talk with about car insurance is l looking to pay less whether they are reviewing their renewal notice or shopping for a new policy. With that in mind, here is a smorgasbord of discounts that will help you keep some of your hard earned money.
Anti-Lock Brakes: Anti-lock brakes have almost become standard equipment on most cars. What insurance companies are looking for is factory installed four-wheel (not just front) anti-lock brakes. Savings is in the 3% to 5% range.
Anti-Theft Devices: Car alarms have also become standard equipment on most new model cars.
- If you have to manually press a button on your key fob to arm the alarm, then you qualify for an active alarm discount which saves you 3% to 5%.
- Cars that automatically arm the alarm when you remove the key and step away from the vehicle, as well as disable the fuel or ignition system are referred to as passive disabling devices and qualify for up to a 12% discount.
Homeowner: Home owners, including condo owners, pay less for their car insurance than renters. This usually applies whether the home is written with the same company the car policy is written with, and the discount can be up to 8%.
Multi-Policy: Whether you own a home, condo or rent an apartment or home, drivers save when they add one of these policies with their car insurance.
- The percentage varies depending on the type of home you have, but savings of $100 to $250 or more a year are typical.
- Add an umbrella policy and you’ll save another 3% or so too.
Multi-Car: Do you have more than one car? Be sure to combine them on the same policy because the savings is usually very attractive.
For those that own one car but are also provided a company vehicle, several insurers extend the multi-car discount to the owned vehicle, so be sure to explore that with your agent.
Passive Restraints: This discount is applied on a sliding scale based on whether the vehicle is equipped with:
- Driver only airbag
- Driver and passenger airbags
- Driver, passenger and side airbags
- Automatic seatbelts may also be required depending on the company
- This discount may be applied only to personal injury protection (PIP) or medical coverage or to the entire premium.
- The discount ranges from 10% to 30% depending on the company.
Low-Mileage: How many miles do you drive a year? If you’re commuting from Dallas to Fort Worth or Frisco to downtown, you drive a lot of miles just in commuting. If you drive 8,000 miles a year or less, you may qualify for a low mile-age discount.
- This discount may have an age restriction.
- Even if you don’t qualify by age, driving less miles may place you in a different category of driver and that will save you too.
Coverage: Which will cost you less, having Texas minimum limits on your car insurance (30/60/25) or higher limits of 100/300/100? Most people believe the lower limits cost less, but that’s not always the case.
- There are a few companies that actually charge less for higher limits than lower limits (it’s a responsibility thing!).
- Or the higher limits are priced at almost the same level.
I am working with a young man who’s buying his first home in Dallas this week. I quoted both the minimum limits he has now and the higher limits I recommended. The difference for excellent coverage was only $2 more a year!
There are three other items that may also save you money on your car insurance however I’ll address them in Monday’s blog because they also apply to home and renters policies too!
If you’re a parent with a teen driver or a college student, be sure to reference these two posts for savings there!
- Teen Driver: http://bit.ly/XWEt8i
- College Driver: http://bit.ly/Z7wzZ1
Share your thoughts, suggestions and questions with us in the comments section of our blog or on our Facebook page! If you’d like a quote for car insurance, click here, http://bit.ly/V1SuPY. It would be an honor to find the best option for you from the excellent companies we represent.