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.

Mr. Gettinby adds that more and more retirees are using equity releases to repay mortgages and other outstanding debts. He advises anyone considering an equity release plan to “seek independent advice from a specialist before proceeding.”

Dean Mirfin, business development director of Key Retirement Solutions, expands on Mr. Gettinby’s advice by stating that without a specialist’s counsel, people can easily pay too much for the plan, as salespeople eager to make a sale cannot be trusted to assist with consumer in finding the best deal.

Unfortunately for many customers, he explained, mortgage companies are currently focusing on “rebuilding their battered businesses,” (referring to the negative impact the mortgage crisis had on many lenders).

Although many experts expect the Bank of England to continue cutting the interest rate in an attempt to kindle the British economy, most experts still expect the rate of personal insolvencies to greatly increase for the 2008 year.

Lisa Taylor, from Moneyfacts.co.uk, said that many savings rates have been cut 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,” she explained. We only need look to Halifax Liquid Gold for an example, who cut their 1.36% rate by .36%, resulting in depletion of an entire quarter of the rate.

In addition to the recent rate cuts resulting from the Bank of England’s base rate cut, many savers’ introductory rate on a savings account expire without them knowing. Many of these introductory rates are high for a certain length of time, most commonly a year, but then drop to a rate even below the Bank of England’s set rate. When savers are not vigilant about monitoring their accounts, they end up with a poor performing savings account.

Some vigilant savers, however, jump around to different savings accounts, benefiting from their introductory rates and moving on when it’s over. Ms. Taylor, however, explains that this requires a lot of time and effort, and can be avoided by choosing a good, long-term rate. She goes on to explain, “With such a fast changing market, unless you are prepared to move your savings on a very regular basis, a consistently good performing account will offer a good return, without all of the time and effort of constantly searching the market.”

Some however, are calling for more action on behalf of the banks. Nationwide believes banks are taking advantage of their clients’ lack of alertness and are suggesting banks call consumers to inform them that their interest rates have dropped, in the same way that banks contact consumers to inform them that their mortgage payments are due. According to Nationwide, this two-way street is only fair.

Nationwide savings director, Matthew Carter, explained, “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.”

What is a saver to do? Besides monitoring your savings account, Ms. Taylor says this is no time for loyalty. According to her company, Moneyfacts.co.uk, the average savings rate is 3.77%, lower than the rate of inflation. Long term, the saver who thinks he is doing well is actually losing money. Ms. Taylor summarizes, “Many of the worst hit accounts are no longer heavily marketed and are probably held by long standing customers who have held the account for many years. It’s just another example of when loyalty does not pay.”

“Self-cert mortgage,” for those not in the know, refers to receiving a mortgage based on your own confirmation of income, without the need for independent verification. Many self-employed people decide to go with a self-cert mortgage, as do those who have multiple income sources or an irregular income. In fact, according to the Economic and Social Research Council, 13% of all employed Britons are self-employed.

When asked about the affect the mortgage crisis has had on this sector, Mr. Pratt responded that it too is essentially unchanged, and that those who have sought a self-cert mortgage have been able to receive them.

The Consumer Credit Counselling Service (CCCS), recommends determining one’s budget by looking at quarterly bills, car insurance payments, and other monetary outgoings, setting an annual budget, and then dividing that by twelve.

CCCS spokesperson, Frances Walker, explained that setting a budget and looking into income maximization can assist many individuals and families. She warns, however, that if 20% of your income is going towards monthly repayments, you are stretching yourself too thin. If this is the case, one beneficial option may be debt consolidation.

For this reason, Mr. Defaqto highly recommends researching interest rates for various size loans, as it can be extremely beneficial. He explains, “Researching the interest rates charged on different tier levels could save [consumers] a considerable amount of money.” In fact, taking a larger loan may require longer payments, but can save consumers as much as £1,000.

In addition to researching interest rates for loans, it is advised for consumers to research credit card rates, as switching between credit card companies can be beneficial in some situations.

The DWP suggests people make efforts to gain control of their finances if they find themselves in this situation, as it can ease anxiety. One such control mechanism that the DWP suggests is to consolidate debt.

In related news, the DWP recently publicly stated plans to create a new child poverty division. According to their studies, the UK government has assisted 600,000 poverty-stricken children in the past ten years alone.

According to a new survey by YouGov, for MoneyExpert.com, over six billion bills went unpaid since 2007. Some of the statistics included:

• 2.3 million either failed to pay their council tax bill or paid it late
• 1.3 million failed to pay energy bills
• Nearly 3 million failed to pay credit card bills

MoneyExpert.com chief executive, Sean Gardner reflected, “Paying one bill late is not something to panic about. But if you find this is becoming 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.”

However, Mr. Falla points out that expected increase in personal insolvency includes bankruptcies, Individual Voluntary Arrangements, and informal debt management plans. He notes, in addition, that it is impossible to accurately measure debt management plans.