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Take Advantage Auto Insurance Discounts

Drivers may assume that rates are similar among insurance providers, so they may not shop around for the best price. Buying a policy without researching it first, however, could be an expensive mistake.

If drivers take advantage of discounts that many providers offer, they can significantly reduce the cost of car insurance. Understanding the factors that impact auto insurance premiums can help savvy shoppers make better decisions about their coverage and possibly save themselves some money in the process.

The most auto insurance discounts fall into one of three categories. Read below to identify possible discounts that could help you save on auto insurance this year.

1. Policy-Related Discounts:

• Carefully select coverage - For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of a car against its current premium combined with its deductible, it may make sense to drop some coverage. Another way to lower a premium is to select a higher deductible. The money saved annually could be significant, especially if the vehicle is never involved in an accident.
  
• Consolidate - Most providers offer multi-policy and multi-vehicle discounts. Consolidating policies - combining car and homeowners insurance - offers convenience and can save both time and money. Additional discounts may also be available for people who have more than one vehicle insured with the same provider.

2. Vehicle-Related Discounts:

• Choose a highly rated model - Do some research before buying a car. Industry agencies assign a rating to every car model based on historical collision, injury and theft claims, among other factors. The higher the rating, the more consumers will reduce their premium. Conversely, choosing a flashy red sports car with a lower rating can significantly raise a premium because insurance providers associate the model with more risk, due to the increased probability of theft and fast drivers.
  
• Take preventative measures - Many providers award discounts to customers who take steps to protect their cars from physical damage and theft. By opting for anti-lock brakes, airbags, alarm systems and other security devices, consumers often can save significantly on their premiums.

3. Driver-Related Discounts:

• Drive carefully - A clean driving record can save money. The more careful and experienced the driver, the less risk insurance providers take, therefore lowering the premium. Some insurance companies also offer discounts to policyholders who complete a defensive driving class.
  
• Drive a friend to work - The premium also ties to how often a car is used. Discounts can apply to carpool participants, for example, because each individual's car is at less risk than if they commuted separately. Commuter discounts also are available for car owners using public transportation because their vehicles will have lower annual mileage than if they drove to work each day.

There are many ways that policyholders can save on their coverage. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles.