Auto insurance companies offer discounts, reductions and special rates on auto insurance. By taking advantage of these, you can save even more on your auto insurance. The following are some of the discounts, reductions and special rates offered by most insurance companies.
a. Low mileage discounts
The distance from your house to your work or school determines your daily exposure to risk. It also determines vehicle use, whether you use it for personal or business use. Your premium is calculated based on the average distance you drive annually or how far you commute from to work or school. Therefore, the shorter the distance you drive, the lesser your premiums will be.
b. Good student discounts
Many insurance companies offer “Good Student” discounts for drivers who maintain a “B” (or 3.0) or above “B” average. It is also offered to those family members studying away from home. Auto insurance companies give discounts for currently enrolled students that have good grades.
c. Multi-car discounts
You can reduce your premium by insuring two or more vehicles in one policy.
d. Other policies
Other policies include life insurance policy or homeowner’s insurance policy. You can avail of discounts or reduce your premium by insuring both your home and vehicle in one company. As many insurance companies offer discounts for clients with more than one policy.
e. The safe vehicle discount
Discounts can be earned by installing anti-theft devices and safety devices in your car. Examples of anti-theft devices are anti-lock brakes and alarms, safety devices are airbags and factory-installed mechanical seatbelts. Many insurance companies offer discounts for this devices installed in your vehicle.
f. Age – Being at least 25 years old
Once a driver has turned the age of 25, auto insurance premiums tend to be lowered. This may be because the driver’s rates are calculated in a different driver class. Risk assessors have determined that those who are under the age of 25 are more prone to accidents due to immaturity and inexperience at driving. The risk of at-fault accidents decreases when a person turns 25 as he or she is believed to become more responsible.
g. The good driver discount
Most insurance companies offer discounts for drivers who have completed a driver’s training course. Drivers who have not had accidents or received tickets in the last 3-5 years are also offered discounts. Avoiding traffic tickets and accidents can greatly increase your premiums. The insurance company could also cancel your insurance policy on your next renewal because of these.
h. Avoiding installment fees
Most insurance companies charge service fees for installment payments. So instead of monthly, you can save on premium if you pay 6 months of your auto insurance premium in advance. Buying a 12-month policy can save you even more.
i. Prior insurance
Some insurance companies offer discounts to those who have been continuously insured for the last 6 months or more.
j. Good credit score
A good credit score can lower your rate as insurance companies usually adjust rates by judging your risk.
k. Car pooling and use of public transportation
Some insurance companies offer carpooling, as well as public transportation discounts. Logic says that the more you use car pooling and public transportation, the less you drive your vehicle. And the less you drive, the less likely you are to have an accident.
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