Lets be honest now. Does your face light up at the thought of saving money when you see or hear the word 'DISCOUNT'? I'll bet you my bottom dollar that it does and for good reason. Who in their right mind isn't interested in saving money, especially if it is on discount auto insurance. Every day we are bombarded with infomercials or radio advertisements promising us the best discount auto insurance. But are these deals too good to be true? Can they really save us as much money as they say?

With the discount auto insurance industry being so competitive, companies are willing to drastically reduce their rates to grab your business, however it could be a case of getting what you pay for. Buyer beware! They may have tempted you to sign on the dotted line with a great price now, but in the end it could end up costing you whole lot more than you bargained for.

If you want to have a chance of saving a ton of money later on, you need to be aware of a few things before undertaking any form of discount auto insurance.

Before signing or agreeing to anything with the company offering you the discount auto insurance, find out all you can about how they want you to pay for their policy:

* What are their payment terms?
* Do they take all the major credit cards or do they only deal in cash?
* What about a check? Will they allow you to pay by check?
* Are you allowed to pay with monthly installments or does it have to be paid annually?

Some companies will charge you extra for allowing you to pay on a monthly basis but there are also some discount auto insurance companies who will insist that you pay a yearly sum upfront and then deny any claims you may make and take your money. The worst thing that can happen is that "scam companies" who have taken your annual payment in advance will 'go out of business' once they have amassed enough money and disappear off the face of the earth never to be heard of again. Once this happens, your insurance policy becomes null and void.

Once you have made yourself aware of the payment terms, the next thing to do is ask questions AND read very carefully, the terms of the policy. This includes the small print. Don't agree to or sign anything until you are entirely convinced that you have read and understood what is covered by the discount auto insurance policy. Here are some questions you need to be asking:

* What costs are deductible from any claim you make?
* What costs will the discount insurance company cover if you are in any accident?
* Will they pay for any damages caused to property?
* What about injuries to another person. Will they pay any hospital costs?

Don't be afraid to ask questions. Find out as much as you can about the insurance policy that you require before you make any payment. If the company sales person is reluctant to answer questions, walk away. It's your hard earned money and you want to make sure that you will be keeping most of it. After all, that is why you are looking for discount auto insurance, isn't it?

OK. So you are satisfied with the payment terms of your discount auto insurance and you are happy that the policy will cover you for any and all claims but there's just one more thing to do. Just how reputable are the insurance company? Are they reliable? Do they have offices local to your area or or are they situated out of state which will mean you having to conduct business over the telephone, and if business does need to be done over the telephone, are they available 24 hours a day? Find out their address and phone number and do a check on them.

It is vitally important that you are truly satisfied and as informed as you can be about dealing with any insurance company you have chosen. The more you can find out beforehand about your discount auto insurance, the less likely you are to end up paying a much higher price further down the road.