Reducing your Auto Insurance Premium

Reducing your auto insurance premium. Auto insurance companies offer numerous discounts to their customers in order to maintain their competitiveness in the auto insurance market. Consumers should check to see what discounts are available to them when considering the purchase of a policy.

Discounts offered by auto insurance companies that can reduce your auto insurance premiums are:

1. renewal discounts-automatic discounts given to customers for simply renewing their policy every 3 or 6 months. This can result in a substantial savings to the consumers of a period of time.

2. good driver or safe driver discounts-drivers who have not a an accident for so many months are rewarded by their insurers by reducing their insurance premiums

3. drivers who do not smoke can receive special discounts by some insurance providers

4. non drinkers discounts are available on some policies

5. There are a few auto insurance companies that offer discount for your grades in school.

Taking advantage of any special discounts that your auto insurance companies provide can result in reducing your monthly insurance premium. When purchasing an auto insurance policy make sure you ask what discounts can be applied to your particular policy.

Removing unnecessary drivers from your policy and those drivers who fall into high risk categories like inexperienced drivers will result in a reduction in your monthly premium.

Increasing your deductibles is one simple way an insured can reduce monthly premiums. The higher the deductible the lower the cost of coverage.

Remove unnecessary coverage. Check your policy to ensure that comprehensive and collision coverages do not overlap. It may save you money to lower coverage on either collision or comprehensive if damage to your vehicle is already covered under both. The collision part of your coverage may already cover damage to your vehicle such as, running into another vehicle. If this incident is also covered under the comprehensive coverage of your policy it would make good sense to lower coverage on the comprehensive portion of your policy resulting in a savings to you and a reduction in your monthly insurance premium.Lowering your coverage limits may be applicable if coverage limits in your state is lower than the average for the United States.

Insurance companies must meet legal specifications in every state. Some extra expenditures or coverage limits may not apply to you or your particular state. Check your local laws and current coverage and compare required limits. A savings may be available for you if your states laws do not require that you meet coverage minimums that are currently placed on your policy.

Do not purchase unnecessary extras from your insurer that you may never use or are already covered by credit card companies and auto clubs.Extras like towing and other emergency services provided already your auto club or other membership that you already have.

Above all be a safe driver. Do not engage in cell phone use while driving or smoking. Reducing the amount of accidents caused by distractions or alcohol consumption will inevitably reduce your over all insurance premium. Use your seat belts and do not speed. Tickets can be costly when insurers determine your monthly premium. Insurers will raise your monthly premiums if you receive traffic and parking tickets. In order to prevent your monthly premiums from being raised in makes good sense to obey traffic laws. Points added to your drivers license are checked by some insurance companies and used to determine the cost of covering you.