Build Your Own Discount Auto Insurance - Seek Out Savings on Car Coverage


Looking for dirt cheap auto insurance? Instead of settling for coverage from a fly-by-night company, you may be able to build your own discount auto insurance policy by seeking out some hidden savings. There are many considerations when buying an auto insurance policy.

If you have multiple policies covering a variety of insurance needs spread among several companies, consider putting all your insurance eggs in one basket. Discounts are available from many companies if you buy more than one policy from them. Lump your boat insurance, motorcycle insurance and both car insurance policies in with your homeowner insurance and you could see significant savings on insurance in general, including a discount on your auto insurance.

Opting for a higher deductible can result in a discount on your auto insurance, too, especially if you have a safe driving record. According to the Insurance Information Institute, you can realize 15% to 40% on your car insurance premium (collision and comprehensive part) by raising your deductible. The more you’re willing to pay out of pocket in the event of a collision, the lower your premium will be.

Rather than taking the monthly payment option for your car insurance quote, try to pay the annual premium in one lump sum. The money added as a service charge for the convenience of making installments could add up to an entire monthly insurance payment -- another nice discount for auto insurance!

While you’re at it, see if your insurance company provides discount auto insurance for automatic payment deductions from your bank account.

If you’re driving an older car (we aren’t talking about a vintage vehicle), you may think about dropping your collision insurance altogether. You’ll still need to carry liability to pay for damages to people and property, if an accident is your fault, and medical to pay for injuries to you, but paying for collision/comprehensive on a jalopy junker that isn’t worth repairing doesn’t make sense. Give yourself another discount on auto insurance by ditching that coverage.

Now, add up all the money you’ve saved building your own discount auto insurance and park it in an interest-bearing bank account. If you are in an accident, you’ll have rainy day savings to pay for your share of repairs, or maybe even next year’s auto insurance premium.

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