Auto insurance companies offer different rates as well as discounts and reductions. By taking advantage of discounts or premium reductions, or special insurance rates, you can save even more on your auto insurance. Here are some examples.
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 discounts for currently enrolled students with good grades and to those family members studying away from home. It’s called “Good Student” discounts for your drivers who maintain a “B” (or 3.0) or above “B” average.
c. Multi-car discounts
Insure two or more vehicles in one policy to reduce on premiums.
d. Other policies
You can also reduce your premium by availing of other policies with the same company. Other policies may include homeowners insurance policy or life insurance policy. Various insurance companies offer discounts if you have your home insured with the same company that insures your vehicle.
e. The safe vehicle discount
Many insurance companies offer discounts for anti-theft devices installed on your vehicle, like alarms and anti-lock brakes, as well as various safety devices, such as airbags and factory-installed mechanical seatbelts. Installing these devices can earn you discounts.
f. Age – Being at least 25 years old
Auto insurance premiums tend to be lower once a driver turns 25 years old. This may be because the driver’s rates are calculated in a different driver class. Risk assessors have determined that drivers below 25 years old are inexperience driver and immature so is more accident prone. So as the person becomes more responsible the risk of at-fault accident decreases.
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
Sometimes, you can save on the premium by paying 6 months of an auto insurance premium in advance instead of monthly. Buying a 12-month policy can save you even more. This is because most insurance companies charge service fees for installment payments.
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
Insurance companies generally adjust rates by judging your risk, so a good credit standing can lower your rate.
k. Car pooling and use of public transportation
Some insurance companies offer discounts to drivers who often use public transportation and carpooling. The idea is the more you use car pooling and public transportation, the less you drive your vehicle, which means the less likely you are to have an accident.
About the Author: Fred Gagnon specializes in providing tips and information on jewelries. He owns a wide collection of beautiful, glamorous and chic jewelries. To learn more about jewelries, accessories, precious metals and gemstones, visit Vintage Engagement Rings and Pink Sapphire Rings.
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