Getting the discounts

You know all those old lines: it's a dog-eat-dog world, never give a sucker an even break, it's a great life so long as you don't weaken. . . The common theme is the basic unfairness of the capitalist world. Business exists to make a profit and consumers exist to pay the price with nothing in between. That means your only choice in this world is either to pay the asking price or go without. Except. . . Well, if you're in business yourself, you can tap into the wholesale markets and make some savings. There may also be tax advantages. But even in business to business transactions, everyone is into profit maximization. No one ever said life had to be fair.

This brings us to the insurance industry. This operates in a halfway house where standard premium rates are quoted for every given make and model, but the final rates can be personalized. If you hit the right markers, you are in line for discounts. And, yes, if you have tickets and have made multiple claims recently, the rates can go up. So what's happening?

Insurance is all about predicting who is most likely to have an accident or have their vehicle stolen. So if your personal driving record is poor or you drive the vehicle almost every thief in the US wants to steal, you are a bad risk and the premium rates will be high. This is the insurance industry using price to encourage you to be a better, safer driver. So there are discounts for loyalty if you renew your policy with the same insurer and have made no recent claims. Similarly, the quality of your driving can save you money. It starts with avoiding any tickets or convictions for driving-related offenses. But continues into a general attitude toward safety. Going through one of the approved defensive driving courses, or fitting additional safety features to your vehicle will be rewarded. Indeed, your choice of make and model becomes directly relevant. Deciding to drive a functional, low-powered vehicle that has five stars in all the crash tests wins you a prize. Driving something turbo-powered like a bat out of Hell gives you a bill threatening a heart attack.

Then comes your address and how far you drive a year. Sadly, some ZIP-code areas have a high rate of accidents and car-related crime. The premiums will be higher there. But if you have a low annual mileage, or only drive at off-peak times, the discounts will apply. There are other opportunities to save money. When you complete the questionnaire to get your car insurance quotes, make sure you select all the options that apply to you. When the quotes appear, you can still talk to an agent for the companies offering the lowest premiums to see whether there are other discounts available. If you don't ask, no one will tell you how to save money. Finding cheap car insurance is all about you being positive and claiming everything you are entitled to.