For Getting the Better Rate on Auto Insurance, carefully examine your current policy’s “Summary of Discounts” and know what they are inside-and-out. If you don’t see this section on your statement, then you are overpaying!

By Alicia Sakal

How did I save several thousand dollars on auto insurance over the course of just the most recent decade? By being an aware comparison shopper that knows what kinds of “Summary of Discounts” options are available. By doing so, the opportunity to qualify and negotiate for “discounts” to get a better auto insurance rate improves significantly.

Whenever I “stop-by” or call my insurance company, the #1 question I ask: Are you offering any new discounts? This gets the dialogue going on what’s new and what has changed.

For 2 Cars: I pay $858 per Year ($429 for 6 Months) on Auto Insurance.

My 72% Off “Discounts”…

1. Go 100% Paperless. I auto-pay online by credit card, and receive a 10% discount. Recently, I found out that if I go completely paperless then I can save 10% more on my auto insurance. Save those tree branches! – 20 Percent Combined Discount, $172 per year

2. Have a Flawless Driving Record. Being part of my insurance company’s “Safe Driving Club” is certainly worth its weight in platinum. – 16 Percent Discount, $136 per year

3. Get a “Multiple Policy”. Add auto insurance (boat and life, too, if applicable) to your Home Owner’s or Renter’s Insurance Policy. Bundling different insurance needs with one “umbrella company” is usually the best way to go because they want ALL of your business. – 16 Percent Discount, $136 per year

4. Always Pay On-Time and In-Full. Being a habitual “Responsible Payer” makes a lot of difference and, literally, pays off. – 10 Percent Discount, $86 per year

5. Own a Car with Safety Features. Antilock brakes and electronic stability control, for instance, make perfect sense for obvious safety reasons. – 10 Percent Discount, $86 per year

What I also find: Discount “types” vary by auto insurance company. For example: My provider no longer offers a “reduced mileage” discount or a major discount for having a higher deductible, but others still do.

Seventy-two percent off in discounts adds up: $616 savings per year ($308 savings for 6 months)

But, don’t get too comfortable with any insurance company…

Routinely Comparison Shop.

For peace-of-mind, it’s always good to find out what a competitor offers. If the quote is better, in most instances I find that it’s not, then first use it to negotiate for a better rate with your current insurance company.

In the end, the “total discount” is relative and arbitrary.

When I comparison shop next, I could find out from a competitor that my 72 percent discount is more like a 10 percent discount. Worse yet, I can find out that there is no discount because the competitor’s rate is better.

For these reasons, it’s a good idea to “shop-around” a few months before your current policy expires. Then, you won’t feel pressured if you need to negotiate or change providers.

Originally Published on Yahoo!