Are you looking for the lowest rates to insure your car?Or desire to save cost insuring that your dream car?
Having an insurance policy that covers your car is great but this can be expensive. With the rapid increase in prices of vehicles, car insurance rates are on the rise too. Getting a discount on your car from your insurer can save a lot of cost.
The average cost of owning and maintaining a car can be expensive. Seeking out discount from your insurers is one of the best ways to save cost.
All car insurance companies offer a range of discount options. These discounts are for the most part not known to customers.
Insurance companies try to match up discounts to the information you give them. But sometimes, there are less known discounts you may need to ask about if you feel you qualified.
This insurance guide covers insurance discounts on cars, to help you get the best rates on your car.
What is a Discount on Car Insurance
Discount on car insurance is awarded by insurance companies to their customers when they meet certain levels. This premium may is known to customers or not.
When do you get this discount?
You don’t have to wait until your auto insurance policy is almost up to, ask about discounts. Your insurer may not take time to make you aware of all the discounts for which you are qualified.
It is up to you to review the pages on your contract to understand the discounts that are available. Ask your current insurer about discounts you think you are eligible for. Also, use quotes on your site to compare other auto insurance online.
You will determine the best insurance available by shopping around for other discounts.
If you find better rates and discounts elsewhere, get another auto insurance policy carrier to save more money.
How discounts affect your car insurance rates?
Insurance companies observe that drivers with certain qualities have fewer accidents and file fewer claims. These set of drivers are then awarded by these insurers.
For example, if you are a driver who works from home and drive very little. And insurance companies find out that you return about half the amount of accidents as other drivers.
In such case, your expected cost to the carrier drops, so you are charged less for coverage.
Also, you might be required by your insurer to take defensive driving courses. This encourages good driving and in turn attracts certain discount.
Understanding how your car insurance rates are calculated is important. Certain risk factors are reviewed when determining auto insurance premiums.
Types of Car Insurance Discount
- Multi-Policy Discount
This is the single biggest discount available on a car insurance policy. It entails car and home insurance packaged together. Many insurers would give you a discount if you buy two or more insurance together.
This is often what most insurers are looking for and they would thrive to get it. Some offer as high as 20% discount.
You can get cheaper insurance by putting your home and car insurance together in the same carrier.
- Multi-Car Discount
This is also known to be top notch in car insurance discounts. You can lower your insurance through a discount bulk rate of several cars and drivers.
Your rate is higher when you own two vehicles versus one, but you are paying a cheaper rate per vehicle.
- Financial Stability Discount
This discount is becoming more acceptable in more and more car insurance policies.
Insurance companies have done studies between low insurance credit scores and high claim activity. A direct relationship established between them was found
Thus, insurers reward good insurance credit score with a financial stability discount in hope of low claim activity.
- Good Driver Discount
A good driver discount is the most common car insurance discount offered by insurance companies. A good driver discount car save you tons of cash per year.
A good driver discount is earned after five years of clean driving record, meaning no accident or traffic violations. Sometimes the discount can is broken into two:
- Accident-Free Discount
- Violation-Free Discount
It serves the benefit of the insured if they have the two discounts separately. The discounts are applied per driver. So the more the drivers, the good driver discount can add up on a given policy.
If your driving record is less than perfect, time and careful driving is the solution. Insurance companies consider driving records as a very important factor in their risk evaluation.
Drivers caught speeding or violating traffic rules are considered to be a higher risk for filing a claim. Insurers can strip customers off these discounts in the event of violation rules.
- Good Student Discount
This applies to students who get good grades and are eligible to drive. Young drivers often pay higher rates because of their inexperience in driving. Insurance companies reward good students with a discount.
A theory stands that “if a student spends a lot of time studying at home, then less time is spent getting into trouble while driving”.
But, this discount do not apply to students you move far away to attend school. They pose as higher risk to insurance companies. Some companies may provide least distance for students to qualify for this discount.
- Homeowner Discount
Insurance carriers often offer this discount to clients who own a home regardless if the home is already insured. Homeowners are rewarded because they are more stable than a renter.
Your home is a strong negotiating tool when it comes to reducing the cost of your discount; thereby receiving two top discount.
If you were not a homeowner at the time you bought your car insurance policy, you will need to request for it. The discount would be added once you have shown proof that you now own a home.
The best advice is that you should look for a home insurance policy at the same time you are renewing your car insurance.
How to Get Discounts on Car Insurance
Lowering cost on your car insurance is necessary to reduce the financial on your expenses. There are things that can be done to achieve this. They include:
- Being a careful driver
With the number of increasing in-car distractions, the tendency of mindfulness while driving reduces. Insurance companies will not awarded discounts to drivers to have higher risk of traffic violations.
The more careful you are, the more accidents and violations you are able to avoid, thereby raise your discount rates.
- Multiple Cars and/or Drivers Saves Money
If you inquire about insuring several drivers or vehicles, you might end up with a lower quote unlike when you get a quote to insure a single vehicle.
Many drivers must have a blood relation or live together in the same house. It is yet advisable to insure every driver in your household at once. Insurance companies will offer a bulk rate because they want business like yours.
Under certain conditions, they would give you a deal if it means you will bring business like it. Two unrelated people may be able to get a discount if they own the vehicle.
If one of the drivers is a teen, you can expect to pay more to insure them. But if your child’s grade is good enough, you may be able to get a discount. This coverage would last until the child turns twenty five.
- Take a Defensive Driving Course
Sometimes insurance companies will provide a discount for those who complete a defensive driving course. This is useful to drivers who have several violation points on their licenses.
Drivers can reduce the number of points on their licenses by taking a defensive driving course.
- Shop Around for Better Premiums
You can consider this if your policy is about to get renewed and the annual premium has gone up. Shop around for better quotes from competing companies and compare with your present premium.
It is also wise to get quotes from competing companies, in cases a lower rate is available.
It is important to note that cheap doesn’t always mean good or going with a lower priced company a wise decision. That means insurer’s trustworthiness should be considered. Remember that you have to be sure that your insurer can pay an insurance claim.
The financial strength of your insurer is important like your car insurance policy. You buy insurance for your security and peace of mind.
It is important to run proper checks on an insurer before buying a premium. Ask friends and relatives for recommendations.
- Use Mass Transit
Insurance companies often ask certain questions when you sign up for insurance. Among which is the number of miles you drive the insured car per year.
For example, if you drive four hours to work per day, you will pay more than some who drives two miles per day. If possible, make use of public transit to cut a fewer miles.
In general, the fewer miles you drive your car per year, the lower your insurance rate.
- Avoid expensive cars; they cost more
Buying that your dream car can be an obstacle if you seek a discount, especially if it is expensive. Insuring a small, lower cost commuter car is a viable option.
It is advisable to find out the exact rates to insure the kind of vehicle you are considering before making a buy.
- Increase your Deductibles
A deductible is the amount of money you would pay before insurance picks up the event of an accident or damage to your car. Deductibles range in value.
By requesting higher deductibles, you can lower your cost. In general, the lower the deductibles, the higher the annual premium.
- Improve your Credit Rating
A driver’s record is a big factor in determining auto insurance cost. Drivers who have been in a lot of accident could cost the insurance company a lot of money.
Research shows that drivers with good credit scores have fewer claims. Yet, insurance companies may also consider credit rating when determining insurance premiums.
Check your credit record on a regular basis and have any errors corrected. So, do your best to keep your credit rating high and accurate.
- Get Anti-Theft Devices
Drivers have the chance to reduce their annual premium if they install anti-theft devices in their cars. Your insurance company should be able to tell which devices to install. Car alarm is a device you might want to inquire about.
Installing an anti-theft device might not be an ultimate solution against theft but the savings might be significant enough for the troubles.
- Speak to your Agents
It is important to note that there are discounts that your insurance company may not let public. In fact, it is of essence that you ask if there are special offers your company offers. You never know what sort of discount is available for your situation.
Military personnel or employees of certain companies offer certain discounts like this.
- Pay as you go Insurance
Also known as black box insurance is available to safe, low-mileage drivers. It is a usage based insurance program.
By signing up, you let your insurer track you driving through a tele-metric device. This device is installed in your car. You get discounts based on how long you drive, when you drive, and how well you drive.
- Research Additional Discount
Insurers provide a variety of discounts. Check for discounts such as this:
- Offers to let you pay the entire annual or six months premium at once
- Agreements to receive e-bills and documentation
- Memberships of groups or unions that enjoy special insurance discounts.
Don’t get distracted by the long list of possible discounts. Compare several discount prices from many insurers.
Take note, that it is not all coverage that is necessary. Go through your insurance policy before making any decision. Especially the fine lines.
The bottom line is that price of auto insurance is likely to continue increasing but this post will help you have more opportunities to save cost on your car insurance.
