Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

Cammy Amaira, director of sales at Intelligent Finance, said: “In Australia, the popularity of offset has a lot to do with mind-set.
“Australians value home ownership as much as we do, but they don’t want their mortgage to take over their lives, making offset their ideal choice.”

He added offset has come on in the UK over the past decade but IF would like it to boom as ‘latest number crunching proves it’s definitely worth it’.

Offset mortgages were introduced in 1997 and were initially thought of as a niche product.

IF, launched in 2000, is a division of Bank of Scotland.

David Kern, economic adviser to the British Chambers of Commerce, said: “The Bank’s decision to cut interest rates to 5.25 per cent was necessary for the economy.
“In the face of worsening global and domestic conditions, a refusal to act would have entailed unacceptable risks.”

He added the move is ‘not adequate on its own’ as threats to growth are ‘much more acute’ now than current inflation risks.
“We would have welcomed a bold UK move to five per cent,” he added.

Nationwide is currently the only major UK lender offering a 25-year fixed rate mortgage.

The building society, a known supporter of Mr Darling’s views on fixed rate mortgages, revealed its 25-year fixed rate mortgage sold out in just five weeks when launching in March last year.

He added that the MPC is now effectively ‘running hard to stand still’.

The Bank ruled out a bigger rate slash in an effort to ease slower economic growth while keeping an eye on inflation.
Meeting every month, the MPC makes decisions on interest rates based on the result of a vote by nine members.

He added the company forecasts GDP growth to be limited to 1.8 per cent in 2008 and 2009 - ‘the equal weakest performance since 1992′.

The latest interest rate decision is due to be made on Thursday, and, with it currently standing at 5.5 per cent, it is expected to be cut by at least a quarter per cent.

Tom Rogers, residential investment consultant at Savills, said: “There is a lot on offer. The market is going through a little blip at the moment but as far as property prices go, I think they are quite fairly priced in Manchester.
“A one-bedroom apartment is still quite affordable and that’s city centre living .You wouldn’t get that in London.”

He added the city has grown ‘significantly’ in the last few years and is still growing.

Savills also said Manchester is a vibrant city where there is always something going on.

According to manchesterfacts.com, £4.9bn in construction projects are planned there over the next decade.

Men are more likely than women to take out a debt consolidation loan - a stat consistent throughout the year.

The Consumer Credit Counselling Service says people should share information about loans with their friends and family.

Moneyfacts research showed 11 mortgage lenders have reduced their maximum loan-to-value available on mortgage products since December last year.

Although there are less 100 per cent mortgages on the market, this is evidence of lender prudence rather than the closing off of the market to first-time buyers, Mr Cook added.

Ms Tucker said: “Buying together is a very sensible choice in terms of affordability, not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating.”

She added couples should rent first however, to make sure the decision to live together is watertight.
The Bank of England predicts demand for secured loans among British homeowners will rise in the first three months of 2008.