Hidden Discounts Can Lower Auto Insurance Rates
February 17th, 2012
The average American most likely believes that he or she is paying too much for car insurance, but the simple truth of the matter is that many Americans do not take the various steps that could help them lower their auto insurance premiums.
The situation in the state of Texas is a case in point. There is nothing in Texas state law – or in the laws of other states, for that matter – that would require companies offering auto insurance to inform consumers about the various discounts for which they are eligible. Instead, it is up to consumers to pursue such discounts on their own. This can require a number of actions on the part of the customer. One handy technique is to read the fine print on their insurance policies on at least a yearly basis. Some of the available discounts may be disclosed in this legal language.
Another useful technique is to closely review company web sites in search of similar information, or call and discuss the situation with the insurance company. In the latter situation, it can be helpful to know what questions to ask. Some insurance companies in Texas will provide a discount to consumers who can demonstrate that they drive a very small distance each day – typically 25 miles or less. Having a clean driving record with no accidents or moving violations for the past 12 months can also cue a discount for some companies, as can the lack of any record of driving under the influence.
According to industry statistics, Texas consumers may be able to save as much as 50% on the cost of a policy when they aggressively pursue the ‘hidden’ discounts for which they qualify.
Robert Hunter, representing the Consumer Federation of America, explains that “insurers aren’t required to let you know when you’re eligible for a lower rate…so it is very difficult to be sure that you have the best price.”
In order to know that they have in fact secured the best price, consumers must do more than work with a single insurance company. It is important to compare rates and policies from several different companies; only then can car insurance customers really know if their current rate is truly a bargain.
Therefore, in addition to asking the right questions and looking for those hidden discounts, consumers should visit an online car insurance rate comparison website. Such a site will ask visitors for a minimal amount of information, such as their age and the type of car they drive. Armed with that data, the site can then furnish the consumer with more insurance price information than they have probably ever seen at one time before.
This is the best way to shop because it lets customers directly compare rates from more than one company at a time, which will let them see which auto insurance providers will be in their best interests in their particular situation. Even those who are not yet ready to buy should arm themselves in advance with the kind of information that is easily obtained by obtaining insurance quotes online and comparing rates.
