Car Insurance Discounts
Car insurance premiums can account for a fair portion of your monthly budget and depending on where you live the cost of car insurance can vary greatly. However car insurance is not solely dependent on where a vehicle is registered but a combination of factors including your credit score, the type of vehicle insured, how the vehicle will be used, the number of drivers in a household, your driving record and much more. If calculating car insurance premiums was not complicated enough the formula for determining how much a driver pays for car insurance also varies from one car insurance company to another. However one consistent factor is that almost all car insurance companies offer discounts to qualifying drivers.
Car insurance discounts are a great way to save money and many drivers take advantage of multiple discounts leading to generous discounts on premiums. The biggest obstacle however is many people still rely on auto insurers to advise them of what discounts are available and quite often there are many discounts unclaimed. Before buying a car insurance policy always take a few moments and learn about car insurance discounts as many discounts exist, and some are not even dependent on your driving record or credit score. Some of the most popular car insurance discounts include:
Good Driver Discount
Good drivers benefit the most and can often save up to 20% or more by having a clean driving record for three (3) or more years. A clean driving record is one free of claims, accidents and moving violations. While some car insurance companies look at a five year history most consider only the last thirty-six months.
Vehicle Safety Discount
Vehicles equipped with safety features such as airbags, anti-lock brakes and traction control devices often receive discounts up to 10% based on the safety ratings of the car and its factory installed equipment.
Auto theft is a big problem and there are many high risk areas where your exposure to auto theft can have a significant impact on car insurance rates. Purchasing a vehicle with anti-theft devices like sterling wheel lock, ignition lock and other time-tested, factory installed, anti-theft devices can certainly provide discounts on your car insurance premiums. However don’t expect a loud alarm to provide much incentive – even many car manufacturers have stopped installing these since they rarely correlate to a lower risk of theft.
Most insurance companies who sell auto insurance also provide other financial products. The most common multi-policy discount is provided when a consumer has both homeowners and auto insurance with the same company (resulting in up to 20% or more off auto insurance rates) however many providers offer discounts should you also bundle life, health or other products. Always ask about multi-policy discounts since the money saved by combining a couple of your insurance needs with the same company can be cost efficient and easier to manage.
Car insurance companies always want you to buy more insurance so the more vehicles you insure the better your rates.
Customer Loyalty Discounts
While fewer car insurance companies offer a customer loyalty discount some insurers do provide you a small incentive each renewal period for staying with them.
Defensive Driving Course Discount
Depending on your risk profile a defensive driving course can often save you up to 5% or more off premiums. The downfall is that most drivers believe any course will do however most car insurance companies have an approved list of defensive driving schools and any course competed outside of these institutions may not be eligible for a discount. Before enrolling in a driving school always ask your car insurance company who they recommend.
Good Grades Discount
Young drivers have a very high risk profile resulting in expensive car insurance premiums however those teen drivers who stay in school and maintain a B average or higher can often take advantage of lower car insurance costs.
These are the most popular car insurance discounts but the auto insurance industry is always evolving and car insurance companies constantly find new ways to introduce savings so always visit the website of any potential providers and search for information on what discounts are available. Its even worth calling around and asking agents about what discounts are most popular to get a current feel for the market before committing to a policy.
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