When I was a small child, as was the case with most parents, my parents cave me an allowance. It started with 25 cents per week. Now at age 5 that was impressive to me. I remember when I had been given enough "raises" that I finally began to receive $ 1 per week. Wow! This was great! My parents initially would not allow me to spend much of my money.
I was instructed to put it in my little bank and save. I would dream of things I could save to buy – most of which I would never have been able to get as my "income" would not allow saving that much. It did not keep me from dreaming however.
I recall one episode of impatience and addressing my father about an increase in my allowance. When he learned of what my plans were his instructions were to save for it.
When I persisted about the amount of my allowance, he gave good advice. He said, " … you need to save your money." Pennies make dollars … "
Maybe that was not original with him but I have never heard it phrased like that elsewhere. He told me that about 40 years ago and I have never forgotten his words.
So what does a kids allowance have to do with quotes on car insurance? Nothing except that there is application with the principal of saving.
Insurance for Car versus Risk
Before continuing, remember that every insurance company lenders providing you with insurance for car, truck, boat, etc., as a risk. As I have noted in previous articles, insurance companies will establish premiums based on your characteristics and they will group you with others with similar characteristics.
Put simply, the company will categorize you (ie, rate you) based on information such as age, marital status, past driving record, the type of car you will be insuring, etc. They kindly on the information you provide on your policy application in making this determination. Based on your information, you are categorized into groups and the insurance company then reviews the claim history of those groups to make projections about future claims. A rate for each group is set based on the historical claims statistics paid by the insurer for the people in that group.
With this in mind, you can see that it is very important to provide complete and accurate information on your application. Doing so will guarantee that your vehicle insurance premium quote will really reflect your unique situation and that you will be quoted a fair price.
Ask About Discounts for Cheapest Car Insurance
Ok. Now let's think about how my father's advice may apply. All insurance companies offer discounts. You will get lumped into specific groups by your application information; however, are you really like "everyone else" in that group? Insurers recognize that there are differences in insurance cars and people and positive differences can be rewarded by offering discounts.
Here are some of the common discounts you might want to ask about:
- Good Driver / Safe Driver: Have you been accident free for a number of years? Has it been a few years since you received a violation? Here is an additional incentive to practice safe driving.
- Senior Citizen / Retired Driver: This discount is based on having reached a certain age or it may be given after you reach a specific age and no longer have a daily commute.
- Multiple Vehicle: Most companies offer this to customers who insure more than one vehicle with them.
- Low Mileage: The fewer miles you drive, the less chance you have of getting into an accident. Insurers recognize this fact and generally offer discounts for low mileage drivers.
- Car Pool: Some companies also offer discounts for drivers that participate in car pools.
- Homeowners Discount / Multiple Policy Discount: Some companies will offer a discount if you own your home (you will need to provide proof of homeowners insurance to verify). Additionally, if you have your homeowners or renters policy with the same company, you may qualify for an additional discount.
- Safety Devices / Anti-Theft Devices: With this you will need to make sure the insurer understands your car. If you provide the vehicle identification number, the safety features can usually be verified but you need to be sure. Also, make sure you ask about additional discounts available for alarm systems or other safety features.
- Driver Education / Young Driver Safety Course: For those with young drivers, the successful completion of an accredited driving course may help offset the higher cost of young drivers car insurance.
- Good Student: Similarly, if you have kids in high school and college, some companies will provide a young driver car insurance discount if they maintain a "B" average or better.
- Distant Student: If you have a child attending a school located more than 100 miles from your home and your child does not have a vehicle with them, there may be a discount available to reflect the reduced possibility of a loss.
IMPORTANT NOTE: Discounts benefit you by helping you get the cheapest car insurance. Insurance companies also benefit because discounts help them to be competitive, attract customers and keep business. So when you shop, do not just ask if a discount exists. Be bold and ask, "How much will I save?" It is important to ask because the savings can differ from one company to another. Ask, Ask, and Ask again! Make sure that you receive all the discounts for which you qualify.
My father's advice was to save even if it was in small amounts . His phrase "pennies make dollars" is certainly applicable with regards to discounts. Today's high cost of ownership requires you to save in every small way you can; however, finding car insurance cheap is not impossible.
While the list above may not be all inclusive, keep in mind that insurance companies can offer a discount for anything that may reduce their losses and expenses. With this in mind, you need to remember to Ask, Ask, and Ask again about all discounts that may be available for car insurance, compare and save.
Be Proactive – Get New Quotes for Car Insurance Annually
Yes, pennies make dollars, but if you do nothing, nothing will happen. Many people become complacent about the cost of car insurance and never review their coverage or make changes. Being a complacent driver can cost money. Make it your aim to review your coverage's at least an annual basis, review your eligibility for discounts and get new quotes to make sure you have the most affordable car insurance for your budget.
