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.

Mark Gattenby, financial services director of Help the Aged subsidiary intone believes that many are turning to equity release to keep up with mortgage and credit card debts, he also urged potential equity release customers to seek advice:

“It is true to say that there is a general lack of understanding of equity release with the general public. As equity release is a major financial decision we would always encourage the public to seek independent advice from a specialist before proceeding.”

Business Development director of Key Retirement Solutions Dean Mirfin echoed these thoughts:

“Retired homeowners should talk to advisers to ensure they do not end up paying too much for equity release plans. [However], providers looking for sales are unlikely to point retirees in the direction of the best deals available.”

Frances Walker from the CCCS is recommending consumers to calculate their annual budget to calculate their monthly repayment.  Walker suggests that if monthly outgoings are over 20% of people’s income they should look at how to optimise their budget.

Debt consolidation may be a good way of reducing monthly repayments and ease consumers’ budget.

Credit Action estimates that UK’ debt totalled £1,4000billion.

More than 50% of Britons overspend at Christmas, with people in the North-East, North-West and Wales suffering the largest financial hangovers. Susan Clark of Job Centre Plus said:

“Struggling to pay the bills after Christmas is a situation that many people find themselves in and can be very stressful.”

One way of managing overspending may be to consolidate existing debts into one loan.

David Black from Defaqto is advising borrowers to research interest rates levels for each tier as selecting a bigger loan may save them money. Borrowing a larger sum of money could save up to £1000 according to the research.

As interest rates tend to be lower for bigger loans, Defaqto is recommending consumers to be careful when choosing their loan as they my find more competitive rates on higher tiers.

2.3million people failed to pay council tax bills in the second half of 2007 and 1.3m people did not pay energy bills in time. With rising energy bills and the continuing credit crunch, households may still find it difficult to pay bills in 2008.

Sean Gardner, Chief Executive of MoneyExpert.com said:

“Paying one bill late is not something to panic about. But if you find this is something of a habit then you need to take action. Missing bills can have serious consequences, whether it’s losing a service altogether or even ending up in court.”

According to YouGov nearly three million consumers in the UK failed to meet their credit card payments, resulting in 35m of fees.

Men will transfer more money than women, an average of £3,395 compared to £1,820 transferred by women. Geographically, consumers in the South-East and the Midland will transfer the most, £3,021 and £2,900 respectively, larger sums than consumers in the North of England (£2,051), Scotland (£2,154) and Wales and the South West (£2,022).

Roger Lovering of Abbey Credit Cards said:

“Its great to see that many people are already turning their attention to getting their finances in order.  January credit card bills can often catch people by surprise, so we would encourage people to keep a check on their finances over the festive season and plan ahead to ensure they aren’t paying over the odds for their plastic.”

Nationwide claims that its rivals are taking advantage of customers who fail to monitor their savings accounts. Currently, many banks offer high interest accounts for a year, before the products drop to below the Bank of England’s base rate, without warning.

Matthew Carter, Nationwide Director of Savings said:

“The savings market is a highly competitive one and providers are vying to take market share. Some providers seem more interested in boosting profit and achieving best buy status than actually offering long term good value to their customers.  Consumers are told when their mortgage deals are due to change and it shouldn’t be any different for savers. With introductory deals becoming more common place, the society is concerned it is becoming even harder for savers to make the best decision.”

Lisa Taylor, of personal finance website moneyfacts.co.uk believes that accounts with a steady rate of interest, rather continually shopping round is the best tactic for the consumer in today’s climate.  Recently, savers have seen rates reduced with the 0.25% reduction on the base rate in December. Taylor said:

“Often a simple no strings account will offer an equally good return, without the need to jump through hoops or navigate a maze of complex terms and conditions.  Some savers have seen their rates axed by more than double the base rate cut. And with many of the accounts already offering uncompetitive rates, the proportion of the rate shaved off is much higher. Take the example of the Halifax Liquid Gold, which saw a 0.36% cut. When we consider the rate was only 1.36% in November, the cut means more than a quarter the whole rate vanishing.”

David Kuo, head of personal finance at fool.co.uk said:

“The long overdue correction in the property market will allow many people who have been waiting to move house to finally realise their dream.  Quite often people will ask how much they can borrow when they want to buy a property. But that is altogether the wrong question. Instead, they should ask themselves how much they can afford to repay.”

Fool.co.uk found that in the next five years there will be more sellers than buyers; for every four people looking to buy there will be five sellers.

John Slaughter, direct of external affairs at the HBF said:

“I think that [the EPC] will have some influence on perceptions of purchases. And obviously, if you go back to point about hiking energy prices at the moment, then people will always take more notice things in that climate. The benefit of the EPC is that it will actually raise awareness of the benefits of good levels of energy efficiency and insulation would have – not just running costs but [for the] comfort of the house and so forth.”