If you’re searching for the unconditional lowest auto insurance rate, you have to ensure that you maximize all the best available discounts. All auto insurance companies provide various discounts, although the exact percentage of every discount might vary between the carriers of auto insurance.
You can spend a significant amount of time while shopping for various insurance firms, inquiring about the available discounts as well as the discount percentages they will offer you for every type of discount. Alternatively, you can bypass this process by looking at the insurance discounts.
In this article, we’ve included some of the best auto insurance discounts available since they can cut down the total premiums of your policy by about 10% to 45%, depending on discount types and the insurer.
Types of auto insurance discounts
- Multi car insurance discount
This discount type is a major player when insurance discounts are considered. Typically, your overall auto insurance rate is higher if you own 2 vehicles than that of car owners with only one vehicle. However, per car, you’re paying a less costly rate as compared to buying auto insurance for the cars individually. For instance, if you’ve 2 cars and paying $400 for each car, the rate can increase for up to $490 per car when you decide to sell one. There is also another insurance discount referred to as the multi-line discount that is similar to multi car insurance discount.
- Multi-Policy discounts
This type of discount is probably the biggest type of auto insurance policy discount available. Basically referred to as bundling, home and car insurance packaged together is the exact kind of business most insurance carriers are searching for and they’ll work hard so that they can get it. This discount can go to as high as 20%. It’s very rare for car owners to get cheaper auto insurance by separating their home and car insurance via different carriers. Therefore, if you’re a home owner, try to get the insurance firm that will package your home and auto insurance policies together.
- Good driver discounts
This type of insurance discount is only offered to drivers that haven’t had a ticket or an accident in the past 3 to 5 years. There are various reasons that make this discount type so sizeable. It’s almost a merger discount since a driver with a ticket for speeding will not qualify for this discount and be surcharged for that ticket. In addition, good driver discounts are usually enforced per driver. Therefore, each and every driver within the household can potentially get this discount, which would great help I reducing the overall auto insurance expense.
- Financial stability insurance discount
This type of insurance discount is finding way into more policies of auto insurance. A difference between poor credit scores and top credit scores might indicates huge money difference per year. Insurance firms have conducted extensive studies that prove a direct interrelationship between a high claim task and low credit scores in insurance. Insurance firms therefore reward the good credit scores with financial stability discounts to encourage low claim activity.
- Homeowner Discount
Insurance companies often provide this type of insurance discount to the clients that are homeowners, regardless of whether their home has been insured by the same firm. Insurance carries reward homeowners since they tend to have more stability as compared to renters.
- Good student insurance discount
This type of discount is only applicable to students that get good grades. A grade point of 3 and above I usually accepted. In addition, college students are required to have twelve credit hours and above in order to qualify. The young drivers tend to pay higher auto insurance rates while good students are rewarded with this discount type. The theory used to make this decision is that good students spend most of their time studying at home and thus have less time to get into trouble when driving.
List of auto insurance savings and discounts
There are about 25 car insurance discounts that might be available for car owners and drivers. You should therefore ask auto insurance agents about the opportunities of these discounts so as to save. However, remember that auto insurance discounts might vary by credit history, driving record, vehicle, state as well as other factors. Some of these auto insurance discounts include; anti-theft, accident-free, anti-lock brakes, affiliation, bundled, auto-pay, driver training, good student, good driver, early signing or renewal, homeowner, military, customer loyalty, new car, multi car, paperless, paid in full, occupation or low income, hybrid car, defensive driving course and emergency road assistance.
How much can you save with these discounts?
Some discounts, such as multi-car, loyalty and affiliation discounts might result to significant savings, whereas others might only result to 2% savings.
There is usually a limit on overall insurance discount that you can get in an auto insurance policy. For instance, some insurance companies allow total discounts that do not exceed 25%. In addition, these savings might depend on your area of residence.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!