Every car insurance company offers special discounts to draw in new customers. Not all discounts are created equally, though. Here is a list of the five best auto insurance discounts offered by the widest number of car insurance companies in the industry today.

1. Multiple Policy Discounts

A multiple policy discount saves you money if you purchase more than one type of insurance through the same company. Most insurance companies sell more than car insurance. You can take advantage of special pricing packages if you add a homeowner’s policy or life insurance policy through your car insurance company. This discount is especially nice because it can save you money on two types of insurance premiums at the same time.

2. Low Mileage Discounts

Many insurance companies offer lower premiums for drivers who don’t drive very often. The fewer miles you drive, the lower your risk of being involved in an accident. If you aren’t driving a long commute every morning and evening, you might qualify for this discount. Each company has different ranges of mileage that qualify for this discount, so you will need to check with your insurance company to see if you qualify.

3. Good Driver Discounts

It is no secret that a good driving history can keep your car insurance costs down. Aside from the standard rate reductions that go along with being a low-risk driver, many insurance companies also offer substantial discounts for drivers who meet certain qualifications. These discounts can increase if you maintain a safe driving history for a number of consecutive years. Good drivers usually qualify for additional perks, such as accident forgiveness or lower deductibles, which can save you money if you find yourself needing to file a claim after a long period of safe driving.

4. Membership Discounts

Another lucrative car insurance discount can be earned by joining the right organization. Car insurance companies tend to affiliate with other groups or organizations to offer special discounts to the members of those groups. Being a member of AAA or an employee of a local manufacturer could earn you substantial discounts on your car insurance costs. You can find out about potential car insurance discounts by checking with your place of employment and any group, club, or organization that you belong to. If discounts are available, they will have a list of their car insurance affiliates in your area.

5. Good Student Discounts

The most expensive demographic for car insurance is between the ages of 16 and 25. Any discount that can cut down those high insurance costs is worth looking into. Almost every car insurance company offers some sort discount for high school and college students who maintain a 3.0 grade point average. The discounts can apply to a policy that is held by the student individually, or they can apply to a policy that is tied into a parent’s insurance coverage. Either way, good student discounts can ease the pain of buying the necessary car insurance coverage for an adolescent or young adult.

Truck insurance comes in two forms. Regular “pickup” trucks, with a short or long wheel base and a V-6 or V-8 engine, are classed similarly to passenger cars. This is because these trucks are designed for hauling relatively small loads and transporting passengers, not for commercial work. Larger trucks, which have the primary purpose of hauling very heavy loads or doing commercial jobs, are classed differently and require a different type of automobile insurance.

If you are looking for passenger truck insurance, your auto insurance company is the best place to start. If you currently have auto insurance on a car, adding a passenger truck to your policy is no problem. You will probably qualify for a multiple-car discount, as well.

However, if you are insuring a vehicle considered as “commercial,” you may have to look for a different agent or at least obtain a different policy. Bear in mind that even using a passenger truck for commercial purposes will require different coverage than simply using it for personal driving.

Commercial trucks are classed according to size and purpose. The larger the truck, the more miles it is driven, and the more hazardous the work involved, the higher the premiums for insurance will usually be.

Commercial trucks typically carry four types of coverage. Liability insurance is similar to what cars carry; it protects the driver in the event of damage caused to another vehicle or person. Cargo insurance covers the items contained within the truck. If a truckload of fine china is damaged in an accident, cargo insurance would cover the loss. Physical damage is similar to “comprehensive” coverage on an automobile; it covers damage from hail, floods, or other causes that may not be covered by the regular insurance policy. Workers’ compensation and medical protect the driver if he or she is injured on the job as a result of operating the truck. There is also a fifth type of coverage called “bob-tail” insurance which protects the truck when it is stored or not actually in use.

The most direct way to find a good insurance policy on your truck is to call several agents and compare prices. National companies such as Allstate, Nationwide, State Farm, or Progressive may be good options, as many commercial vehicles are driven over state lines, and different laws may apply to accidents in other locations. National companies have the resources to deal with this issue.

Another way to find low rates is to perform an internet search. Some websites are devoted to commercial truck insurance issues, such as www.thetruckersreport.com. This website has information on many commercial trucking insurance issues and can help you find companies that insure commercial vehicles. You can also try www.bestcommercialtruckinsurance.com, a warehouse of trucking insurance companies that offers phone and internet service.

Be aware that many websites deal with commercial trucking in other countries, so be sure that the one you choose is based in the United States. Also, be aware that not all companies cover commercial trucks in all fifty states. Some companies have exclusion clauses for certain metropolitan areas, such as New York City and Los Angeles. Be sure you understand the limits of the policy for which you are applying.

Teachers are not usually highly paid, but they do enjoy discounts on various items that are not available to the general public. For example, many cell phone plans offer teacher discounts; sometimes lower prices are available to teachers for computers and other supplies and other necessities to help them with their profession.

Teachers also enjoy discounts on auto insurance. As a group, teachers are a fairly good risk, so insurers are willing to give them lower prices on premiums not only because of their insurability, but also as a way of saying “thank you” for their devotion to the education of our youth. Finding these discounts need not be a difficult task; many online sites give teachers search capabilities to find good, discounted auto insurance prices.

Some companies deal directly with teachers through teacher-based web sites. At www. teachers.com, Unitrin Insurance Company offers teachers a free rate quote through their “Teachers’ Insurance Plan.” With $8 billion in total assets, Unitrin is a nationwide company with a sound financial base, and can save teachers hundreds of dollars per year on their car insurance. Whether you are an active or retired teacher, Teachers’ Insurance Plan can offer you a competitive rate and with even more discounts for multiple cars, home ownership, and drivers’ safety courses.

Many big-name companies also offer auto insurance discounts to teachers. Farmer’s (www. farmers.com), Liberty Mutual (www.libertymutual.com), and State Farm (www.statefarm.com) are just a few of the larger companies that offer teacher discounts.

An internet search for teacher discounts for auto insurance will turn up dozens of sites to examine for low rates. Most sites offer quick, free quotes, so that you can compare the rates and coverage and see for yourself how much you can save.

The average discount for teachers is 10-15% of the regular premium rate. Younger teachers or those with less-than-perfect driving records may have higher rates than others, however. Even with the discounts, the type of vehicle you own, your age, location, and driving history all factor in to your final premium rate.

You can also check with your local school board for policies which are endorsed by your system. Many teacher credit unions and other entities offer low-cost auto insurance to their members.

As you search for a policy, keep in mind that rates vary significantly based on coverage, as well. Be sure that the “lowest price” covers you for all of the same incidents and at the same deductibles and liability levels as your current policy. A well-known trick of “low-cost” insurers is to advertise a price but to hope you will ignore the fact that you are not receiving as much coverage.

Finally, check your policy carefully for unneeded benefits. As a member of the teacher’s union or other organization, you may receive some of these benefits already. For example, many policies include a charge for towing services. If you have a cell phone plan or are a member of certain organizations, such as AAA, you may not need this coverage. Be sure to discuss with your agents ways you can reduce your benefit costs, but keep the coverage you really need.

If you are looking for a good car insurance rate, and you have searched the internet for “car insurance,” you may overwhelmed by the number of sites you find. It seems that there are hundreds of car insurance sites, and they all claim to have the lowest prices. How do you find the right company for you without sifting through hundreds of web sites?

There are web sites which automatically compare the rates of several companies, and even allow you to do side-by-side comparisons of rates and benefits. Using a comparison website can save you time and help you make a sound decision about your insurance purchase.

www.insurance.com is a general website with a great deal of insurance information. There are sections on auto, home, life, health, and other insurance, and an application that allows you to receive a quote from 14 top-rated companies. There are also news articles on current insurance topics. Perhaps most useful, there is a section in which you can review your particular state’s insurance rules and facts before getting a quote.

Beware, however, that like all “comparison” sites, www.insurance.com will not give you quotes from all companies. In fact, this site focuses on “independent” insurance companies, rather than the “big five.” You may not receive a quote from Allstate or State Farm, for example, but you will probably see quotes form MetLife, The Hartford, and other agencies relying on independent agents to sell their product.

www.netquote.com, however, is a comparison website which will give you quotes for the larger insurance companies. Netquote utilizes a large database which not only gives quotes on auto insurance, but can also help you find business, home, life, health, and even group health policies. Netquote advertises that you can save up to $500 in one quote, receive 5 quotes with one form, and that all the top companies will be included. Nevertheless, if you have factors that make you a high-risk driver, you may receive a quote with some smaller, independent companies listed. This is because many larger carriers will decline to insure high-risk drivers, although there are companies willing to do so for a price.

If cost is your primary concern, www.cheapestcarinsurancepremium.com claims that they exist only to help people save money on car insurance. The founder wanted to create a website which would focus only on price, to assist people in today’s economy in finding a policy they could afford. The site also offers tips to lower your car insurance rates, and contains articles about insurance subjects, such as explaining that most drivers are overinsured and do not get all the discount rates to which they are entitled.

This website also allows embedded advertising for other quote engines, such as www.insureme.com, which may give you more than one comparison list with which to work. The quotes on Cheapest Car Insurance are based on your zip code. When you enter your location, a list will appear which shows the available companies for your state. Along with each company, a short list of facts about the company appear, allowing you to choose the companies you want to compare.

Unfortuantely, this site does not perform side-by-side comparisons, but takes you to each company’s website to get a quote. While this may require a bit more searching, it does benefit you in that you get a more exact quote than that provided by some of the “shotgun” approach sites. Often, consumers find that these sites do not give very exact quotes, but rather estimates based on genera l information. When the customer applies for insurance with a particular company, fees may increase (or even decrease) based on the detailed facts supplied.

There are more than 250 million passenger vehicles in the United States of America. Car insurance enables policyholders to drive without having to worry about the monumental costs of a collision. That is, if it doesn’t bankrupt you first. Vehicle insurance is one of the few expenses that you are required by law to pay and depending on where you live, you may be paying a pretty penny indeed.

Expensive Cities for Car Insurance

Ironically, the metropolis known as ‘Motor City’ is notorious for its exorbitant insurance premiums. The average yearly cost of insuring a vehicle in Detroit is a whopping $5,948. Detroit’s prices seem especially outrageous considering that they are 56% higher than the second highest in the country and are more than seven times higher than the cheapest car insurance available in the United States.

A distant second place trophy goes to ‘The Big Easy’ with New Orleans coming in at $3,802. Philadelphia, Baltimore and Miami round out the top five most expensive places to insure a car, costing drivers $3,496, $3,168 and $2,959 respectively. The ten most expensive states to own a car are Hawaii, California, Alaska, Nevada, West Virginia, Connecticut, Louisiana, Washington, New York and Arizona.

Cheap Cities for Car Insurance

It appears that the best way to lower your insurance premiums is to pack up your truck and move to Ohio. Surprisingly, several of the top five cheapest places to insure a car are cities that you have probably heard of.

At $865 a year, Wapakoneta, Ohio can boast the most inexpensive car insurance premiums in America. Ohio makes another appearance on the list with Fairfield coming in at the economical price of just $951. None of the five cities on the low-priced list even breaches the $1,000 mark. Portland, Roanoke and Lafayette offer incredibly low rates at just $953, $963 and $982 respectively.

Tips for Cheaper Insurance

If you are one of the unlucky drivers commuting around Detroit, fear not. There are some things that you can do to help lower your premiums:

1. Choose a Higher Deductible- Raising your deductible by just $250 can save you 30% on your yearly premium.

2. Get a Discount - Car insurance is a competitive industry and your company is likely to have dozens of different ways to save, like paying online or having multiple policies with the same company. Ask your insurance representative about all available discounts, and you’ll likely save a few dollars every month.

3. Shop Around - No matter how great you think your current rate is, there’s a good chance that a better rate is waiting for you. You do not have to wait for your current policy to end and you can probably get the same coverage for a better price.

4. Improve Your Credit Score – Most companies base your premiums in part on your current credit rating. A great score can mean a great rate on your vehicle insurance.

5. Ask about New Programs - Many of the larger insurance companies are trying to lower premiums by offering drivers an option to equip their vehicles with devices that will track driving habits and lower your rates for safe driving.

Los Angeles has thousands of cars on the highways each day, traffic jams without number, and long distances to travel to reach certain areas of the city. With all of these factors considered, it is not surprising that Los Angeles is one of the most expensive American cities in which to drive. Gas is typically higher in Los Angeles than anywhere in the nation. Surprisingly, however, the cost of car insurance is one expense in which Los Angeles is exceeded by several other American cities.

Los Angeles averages fourth in the nation for insurance rates, with an average cost of $3,225 per year. Detroit, Philadelphia, and Newark all have higher average rates. However, due to the size of the city and the high costs of operating a vehicle in general, this savings may quickly be absorbed by other factors. Parking, for example, averages $20.90 in Los Angeles, the fifth highest amount in the nation.

Car insurance costs in Los Angeles, as elsewhere, are not determined solely by the city in which you live. Living in an urban area certain drives up prices; a driver in a rural area can expect to pay less than half of what a similar driver of the same car will pay in a metropolitan area. However, there are other factors which contribute to Los Angeles insurance costs.

Individual driving records and habits are probably the most significant factor in any car insurance policy’s price. Safe drivers who have avoided accidents and tickets will naturally enjoy lower rates than those with a poor driving record.
The speed at which you are ticketed can also affect your insurance price; speeds above 20 miles per hour over the limit are considered particularly dangerous. A DUI or other impairment charge will almost guarantee that you are put in a high-risk group and charged very high rates for your insurance coverage.

Where you live in the city may also affect your rates. If you are located in a relatively remote suburb and do not drive on the freeways or in congested areas very often, you can get better rates on your insurance than someone who drives across the city regularly or lives in a congested area. Further, if you live in an area where crime is very common, your comprehensive coverage may be higher than if you are able to garage your car every evening in a safe neighborhood.

Where you work can even affect your rates. If you drive downtown every day and park in a public garage, you may pay higher rates than if you work in a more remote location with monitored parking.
The type of car you drive will also affect your rate. Older cars and sedans will be priced at much less than sports cars or expensive models. The insurance company must look at the cost to replace your vehicle if it is totaled in an accident, so cheaper cars garner cheaper insurance rates.

Car insurance in Los Angeles is manageable if you have a clean driving record and are driving a modest vehicle. Checking into online quotes can give you an idea of the price you can expect to pay.

Most people are aware of car insurance fraud, but they would probably be surprised to learn how often it occurs. The frequency and serious nature of the problem have prompted many states, including Florida, to take increased action against it. Anyone who considers involvement in a car insurance scam is treading down a dangerous path. The intensified focus on this crime makes imprisonment of those involved a more likely outcome than ever before.

Tricks of the Trade

Car insurance fraud is perpetrated in several ways: staged car crashes, false claims of bodily injury, and false claims of stolen cars are a few examples. To determine payouts, car insurance companies rely on reports from adjustors and medical records from physicians and other providers. Unfortunately, vehicle owners do not always act alone, and car insurance fraud rings, including attorneys, physicians, office administrators, and others, are not uncommon. By staging crashes or lying about the facts of legitimate accidents, fraudsters are able to walk away with money they do not deserve. We all pay the price when these crimes cause our car insurance rates to rise.

Why Florida?

Thousands of questionable claims have been filed in the state of Florida with more than 1,500 in Tampa alone for the year 2010.[1] The suspicious claims filed in Tampa nearly double those filed in Orlando.

There are many reasons credited to Florida’s high number of car insurance fraud cases. Most relate purely to monetary gain. However, immigrants often stage car “accidents” to obtain the money to illegally enter the United States.

Another reason is the abuse of Florida’s mandatory Personal Injury Protection (“PIP”) policy.  The Florida Motor Vehicle No-Fault Law requires all owners/registrants of motor vehicles with four or more wheels to carry a minimum of $10,000 of PIP to cover medical bills (paid directly to providers) and lost wages. The policy is known as an easy target of corrupt clinic owners and suspect attorneys and is abused in several other states as well. While PIP was created to help those in need, criminals have found ways to use it to access large amounts of money. In truth, the problem is becoming worse. Fraud arrests this year have already surpassed last year’s total.

Taking Action

Of course, car insurance companies are not happy about people lying on accident claims. While there is no surefire way to know which accidents are staged and which truly are accidents, law enforcers are taking more time to examine each accident. They have even worked to get communities involved, offering up to $25,000 to anyone who provides information leading to an insurance fraud arrest.

The state of Florida has stepped up and taken notice. State lawmakers, regulators, and law enforcement officials are working to make sure every person who receives an insurance settlement rightly deserves it.

If you’ve been in an accident, you’ve likely faced a tough decision: should you buy OEM (original equipment manufacturer) parts for your vehicle or go with aftermarket solutions that appear to be the exact same offering? There are distinct benefits to choosing each path, but the good thing to know is that — in most cases — your car will emerge fully repaired and perfectly fine no matter which option you choose.

Aftermarket Parts: Benefits and Other Considerations

Perhaps the number one benefit of choosing aftermarket parts for your vehicle repair is the amount you’ll save at the point of sale: up to 60 percent in some cases. That’s huge savings, especially in the world of vehicle parts where prices can be in the hundreds or thousands of dollars. If cost savings is your number one deciding factor, there simply is no contest: you need to shop for aftermarket parts to repair your vehicle properly.

However, the potential savings on aftermarket parts can be a negative thing, as well. First and foremost, for OEM enthusiasts, insurance companies are not on your side. Like other corporations, they seek to save money wherever possible. For this reason, insurance companies will almost always complete repairs of a vehicle with aftermarket parts made by a third-party supplier.

Another consideration is that aftermarket parts vary widely in quality, unlike OEM parts, which are produced in a standard fashion by one company — typically in one factory, as well. While this is not generally an issue for most drivers, it can and does affect quite a few each year when their repairs don’t last.

OEM Parts: The Good, the Bad, the Expensive

Buying OEM parts for a repair is a guarantee of quality for your vehicle. It’s the exact same part installed before, only newer — in most cases. You’ll have peace of mind that simply doesn’t exist with standard aftermarket parts. However, it’s worth noting that these parts can be extremely hard to find as your vehicle ages. And, as their rarity increases, so does the price you’ll have to pay to pick them up and use them for your repair.

And that’s to say nothing of the fact that these parts are, on average, much more expensive than competing aftermarket brands. However, deep pockets will be heartened to know that a thorough search and a big wallet can likely secure any piece of OEM equipment, no matter how rare. And there is something to be said for consistent quality throughout an entire vehicle’s parts.

Aftermarket parts are the discounted option that most drivers will definitely want to pursue, and they’re certainly the option of the nefarious insurance industry. However, OEM parts offer the peace of mind that comes with quality and consistency, which can’t be overrated in something as important to your safety as a vehicle. There’s no harm in trying aftermarket solutions, but those with the wallets and desire to avert the risk will want to stick with OEM replacements.

The tough economic climate in the United States, especially in struggling California, has made it nearly impossible for some people to afford insurance on their vehicles. Whether laid off, struck with an illness or disability, or simply making less money, many people simply want to save where they can. For lots of Californians, that includes their car insurance premiums.

California offers its citizens many benefits. One program serves as a safety net for both those who cannot afford insurance and those who must share the roads with them. The state of California has an innovative state-run insurance program for low-income families and individuals that provides the minimum level of coverage needed to cruise the highways legally. It includes only liability coverage, but at $400 per year, it’s the kind of bargain an insurance company could never match.

Limits and Benefits

The California Low Cost Auto Insurance Program is open to all Californians who are 19 years old and have a safe driving record that dates back at least three years. In addition to experienced and safe driver requirements, the program does come with an income limit for eligibility. In California, home to the country’s highest cost of living, the limit for entrance into the program is a surprising $55,000 per year annual salary. Additionally, a recipients car cannot be worth more than $20,000 at the time of signing up — so say goodbye to that hot rod.

Once approved for the program, basic liability insurance as provided by the state of California costs a mere $400 per year, far less than typical insurance rates for the same basic coverage. Under the law, drivers need coverage for $10,000 per person in bodily injury costs, $20,000 per accident in miscellaneous and other fees and charges, and $3,000 for property damage done to the vehicle at the time of the accident.

No other coverage is provided, which may worry some drivers. However, for those who simply cannot afford traditional coverage from a private insurer, the program is highly affordable and eases the many concerns that come with breaking state and federal law by driving without insurance. Indeed, it also erases worries about being pulled over and facing fines and potential imprisonment.

Popularity

This is where the true disparity becomes clear: while California estimates that 4 million people uninsured driver populate its roads every day, the Low Cost Auto Insurance Program counts only 11,000 Californians among its ranks. That’s largely because most people have no idea the program even exists.

In an effort to change that, the California Department of Insurance is heavily marketing the program, which has been around since 2000. They’re targeting low-income areas in San Francisco and across the state in an effort to save more lives from financial ruin and leave more dollars unspent from costly uninsured accidents.

There’s really no need to drive without insurance, especially in California. The state’s program is one of many ways that drivers can save money and save themselves from criminal charges at the same time.

Despite the fact that all fifty states mandate a certain level of insurance coverage before a driver can set out on the open road, many people leave the house with inadequate coverage — or without coverage at all. An accident involving this type of driver could be extremely expensive. Luckily, the conscientious driver can purchase a UM/UIM option with their car insurance policy to help blunt the effects of irresponsible drivers who have inadequate or nonexistent insurance coverage.

UM/UIM Explained

UM/UIM insurance essentially stands for a much longer title: Uninsured Motorists / Under Insured Motorists. It guards against those who haven’t purchased auto insurance before setting out on the open road, or those who simply have purchased minimal coverage that is not sufficient to cover the high cost of medical and repair bills for the other motorist involved in an accident.

Many states don’t require the coverage, but is available in all of them. It’s worth taking a moment to check whether you have this coverage on your policy, as many people simply don’t realize what it is, why they need it, and how it can help them. If you don’t have it on your policy, the time to add it is now — maybe even yesterday. If you currently have a policy, it’s worth checking into the coverage amounts and limits it provides.

What Are Your Limits?

It’s important for drivers to know exactly what the UM/UIM policy and limits are because the number of uninsured drivers on the road numbers in the tens of millions. The likelihood of a collision with an uninsured or under insured motorist is on the rise, as are the associated medical and repair costs. The poor economy means that many drivers simply can’t pay the insurance bill but keep driving anyway because they have to get to work.

Being aware of your coverage limits ensures that you will be able to talk with your insurance company about your options in the event of an accident. It also ensures that your financial situation will not be at risk due to another motorist’s insurance problems.

What It Covers

UM/UIM insurance can cover medical bills resulting from an uninsured motorist’s indiscretion. This is vitally important, as an uninsured motorist simply will not be able to compensate an affected driver for any costs. While a driver can sue for damages and repairs, it’s likely that someone who hasn’t purchased insurance will not have the money to pay court fees, damages settlements, or other court-mandated consequences.

And while an affected driver’s insurance company may cover some of the costs, it will leave thousands — maybe even tens of thousands — of dollars uncovered and payable immediately. There is really nothing else an insurance company can or will do, essentially because your premium amount determines your coverage and it’s only within their power to provide as much coverage and compensation as you originally paid for.

Lacking UM/UIM insurance can lead a driver straight to financial ruin, and that’s reason enough to check your limits and make sure you have adequate coverage.