Autophobic?!

Most drivers are familiar with the mechanical improvements or options that insurance companies value when handing out discounts on premiums. These include:

• passive restraint systems,
• anti-lock brakes,
• and anti-theft devices.

Policy holders may not be aware, however, that there are lesser known options for discounts that can save them substantial money on the cost of their coverage.

• Education. Some companies have conducted studies that place certain degree holders in a lower risk category, for instance those with engineering, science or math degrees. These discounts can range from 10 to 30 percent and although this option is not widely available, it doesn’t hurt to ask.
• Occupation. Other insurance industry studies have shown that teachers and farmers have the lowest risk-associated occupations behind the wheel. Farmers might have to work a little harder to get such a discount, but many companies do offer specific educator discounts in the range of 10 to 30 percent.
• Service to country. Many insurers, GEICO among them, offer discounts of 2 to 15 percent to active and retired military personnel as well as options for coverage decreases during periods spent overseas when a vehicle is likely to be in storage.
• Age. Retired individuals often qualify for deep discounts. For instance, Hartford has a AARP Auto Insurance Program that can save older drivers as much as 45 percent. (AARP membership can benefit drivers in numerous ways regardless of the insurer used. If you are a member, you’ll want to fully investigate this potential.)
• Driver’s education. A number of companies offer discounts for the completion of driver’s safety or “defensive driving” courses that people normally only investigate in the wake of a traffic citation. Many of these courses can now be completed online or via course materials sent to the home on CD or DVD.

Procedurally-related discounts may also be available to drivers. For instance, if there are multiple policy holders in one family — husband and wife and a teenage driver — the company may offer a “family” rate on premiums. New programs in place at some insurance companies offer discounts for teenage drivers if advanced monitoring systems are in place like GPS monitoring of the car’s location and rate of speed while the teen is behind the wheel. Finally, car leases may come with a substantially lower insurance premium although this option may be offered less frequently as fewer automakers are now involved in leasing.

The best way to stay abreast of potential discounts is to conduct your own research, ask lots of questions when speaking with an insurance agent, and comparison shop. Don’t be afraid to haggle. Discounts may materialize magically in front of your eyes when you simply say, “Your competitor offered me the following. What are you prepared to do to get my business?”