Insurance Discounts

We all want to save the most money possible on automobile insurance. With gasoline prices and repair costs becoming more expensive, the last thing that any of us wants is to be faced with an enormous bill for automobile insurance. So, what can the average driver do to reduce the cost of purchasing insurance? There are several methods of reducing this expense, but perhaps the best kept secret in the industry is the fact that automobile insurers offer discounts to their customers. These discounts reduce annual premium costs to policyholders just like you.

Car insurance companies will not often come right out and tell you about all these discounts. Year after year these companies earn millions in premiums when customers unknowingly pay more on their policy than actually necessary. Research is sometimes necessary to discover all the discounts to which a person is entitled. The following paragraphs will assist in your knowledge of some of these discounts. Always make sure, however, that particular discounts are available in you area and with your company.

A couple more well known discounts are ?good driver? discounts and anti-theft discounts. ?Good driver? discounts are given to policy holders that make no claims on their records. They are essentially trying to help their customers drive more carefully on the roads in hopes of preventing accidents by giving them incentives in the form of discounted insurance. Most companies will increase that discount percentage for every year you go accident free. Putting anti-theft devices in you vehicle is another potential discount. Insurance companies want drivers to put these devices in their vehicles in order to decrease the millions the companies shell out for their customers? cars that are burgled each year. Do not forget to ask about this discount if you have these devices in you vehicle.

Another discount that may be available is based upon advanced driver training. The insurance companies believe that a more highly trained driver runs a lower risk of accident than a less experienced driver. Therefore, if you have taken an advanced driver training course, it may entitle you to a discount, especially if you are newly licensed.

Things such as anti theft devices and advanced driver training will often pay for themselves over time, through the reduction they will offer to your premiums. Because the insurances companies want as much business as they can get, if you have auto insurance and home insurance with the same company they will more often than not offer you a discount for both your home and auto insurance.

Similar to the above discount, many companies will have a multiple vehicle discount. If you are a multi-vehicle family and insure all the automobiles with the same company, you are eligible for this discount. Say you do not use one of these vehicles often; ask about the low mileage discount. Those who drive 5000 miles or less a year may qualify for this discount as well.

These are just a few of the discounts offered. When considering discounts, remember that the insurers will typically reward you (in the form of reduced premiums) for anything that reduces their likelihood of a claim or that increases the amount of business they do. However, because discounts are not always offered up front, it is important to be proactive and ask for any that you believe you might be eligible to receive.

Susan Reynolds is the webmaster for a leading South African Insurance provider who specialises in Car Insurance.