Cut Your Auto Insurance Costs

Here's our trade secret for lowering your everyday expenses: Ask for the discounts, freebies and special deals you deserve. Yup, it's really that simple. You'd be amazed at how much you can slice off your bills just by asking for what you fully deserve. Let's start with your auto insurance.

Never, and we mean never, assume your insurance company is giving you all of the discounts you're entitled to. The following discounts could slice up to 40% off your annual premium—but only if you ask for them:

1) Safety devices. Insurance companies love airbags, automatic seatbelts, anti-lock brakes and security systems. They'll offer you hefty discounts for such safety equipment.

2) Safe driver. If you are free of moving violations and accidents for the last three years, you should get a discount. You can also get up to 10% off in many states if you take a driver training class.

3) Longtime customer. If you've been with the same company for three years or more, ask for a discount for your loyalty. You can usually get 5%-10% off.

4) Age-related discounts. Age does have its benefits, you know—such as the 20% discount some insurance companies will offer you if you're over 55 years old.

5) Student discounts. You can get discounts if your kids are in school. If your kid gets good grades, it could mean as much as 25% off. If he or she is at school more than 100 miles away from home, you're looking at another 15%.

6) Risk-related discounts. You can get discounts for anything that reduces the risk of your filing a claim. For example, you can get up to 10% off for parking in a garage, or 5%-20% for carpooling.

7) Raise your deductible. We recommend a $500-$1000 deductible on your auto insurance. Don't keep paying a high premium to keep your deductible low in case you have to make a claim. The money you save in premiums will more than make up for any extra out-of-pocket expense you may have because of a higher deductible.

8) Insure all your cars with the same company and save 10%-20% with a multi-car discount.

9) Keep all your insurance policies with the same company. You can slice up to 15% off your bill for having your homeowners and auto policy with the same company.

10) Eliminate extra coverage for automobile-related death.

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