How To Get Discounts To Lower Your Car Insurance Premiums
Liability auto insurance is legally required in most states and lenders who make car loans generally require you bump that up to full coverage. That means that no one has to convince you that you need to have it, but there are multiple carriers out there trying to earn your business. They do that through a variety of discounts, hoping that they will become the least expensive and most attractive option for you. Discount will affect people differently though so it’s good to know what types of discounts are out there and how to qualify for them. There are three main clarifications of discounts.
#1. Driver Discounts
One of the biggest factors in determining your premiums is “who” you are. How old you are is a pretty big factor and one that’s outside your control, but the fact is that insurance is more expensive for teens and young adults. You could get discounts for affiliations that you have though such as a good student discount, military or other job-related discounts, or even college alumni discounts. You can also earn discounts from being a safe driver. If you haven’t had an accident, moving violations or other claims for a certain amount of time you can get a break. You can also get discounts for being a low-mileage driver if you don’t drive often. There are many driver-related discounts out there.
#2. Vehicle Discounts
Some discounts have to do with your car. Some cars are more expensive to insure so having a used or older car can score you discounts or straight up lower premiums. Safety devices can also get attractive to insurance companies so they incentivize that. Also, having a family plan with more than one driver or more than one car can be another way to get a discounted rate.
#3. Policy Discounts
Many insurance companies don’t just handle cars. If you are able to bundle your car insurance, homeowner’s or renter’s insurance, or personal liability insurance, then you can get a bundle discount. A very common policy discount is auto-pay or pre-payment discounts. If you choose to pay for the year in advance or let the money come out of your bank account automatically each month then you can save a pretty good amount on your premium. Auto-pay lowers the insurance company’s risk and administrative work and they pass some of those savings on to you.