Of course, we all love discounts on car insurance. They save us money! So when and how do we get them? Which companies offer the best discounts? Well, we will tackle that in another article. For now, let’s try to summarize the car insurance best deal and discounts. You’ll want to know about these before you sign on the dotted line.
Generally, there are three main categories of discounts:
Discounts because of your driving history
If you are a safe driver, then you can get better car insurance discounts. This should be obvious. It means that the insurance company thinks you are not a risky driver so they won’t have to pay as much money in claims. Then they pass that savings on to you.
Many companies have a No-Claim Bonus. This is probably the best discount and it is cumulative. Every year, the insurance companies looks to see if you have filed a claim for a car crash or theft. For each year where you do not submit any claim, you’ll get a bonus. Pretty cool!
Other vital discounts that are given to people because of their good behavior include loyalty discount, great student discount, defensive driving discount, and low-mileage reduction. Make sure to ask about all of these.
Car insurance discounts for your vehicle type
There can be several discounts based on the type of vehicle you have. The most common discounts are for security equipment. Although they aren’t as common these days, alarm systems can get you a discount on your car insurance. Also, tracking devices will also help drivers get better prices. This just makes it more likely that a stolen car will be found.
However, drivers who set up modern equipment and sensors will get better rates, too. These include systems such as lane-departure warnings, parking aid, and collision-warning systems. These are well valued by insurance companies and they are happy to pass on some savings to their customers.
Of course, we can’t ignore the type of car your drive. If you drive a sports car or a car with a poor safety record, you will have to pay higher car insurance prices. This is also well known. The amount you pay will depend on how unsafe the car is.
The sports car thing may also be compounded by other risky behaviors. One way to limit the additional cost is not to drive the sports car very much. If you have a daily driver that is more safe, aka slower, then that may help.
Policy discounts based on your coverage
When deciding on insurance coverage, you will have several choices to make. Your decisions for coverage will impact the costs. For example, you can get reductions for paying the complete cost of the policy ahead of time, bundling policies with your home or boat, accessing multi-vehicle plans, or even getting quotes and coverage online. These are all available to anyone who asks and sometimes you don’t even need to ask!
Of course, one of the big ways to save is by changing your deductible. This is the amount you are willing to pay before the insurance kicks in. For example, if you are in a crash, perhaps you are willing to pay the first $500 in damage. If you increase that to $1000, then your policy cost will decrease.
When you talk with customer support, or your car insurance agent, make sure to ask about the differences. They can tell you exactly how much you will save based on your preferences. If you want to ask someone about these discounts, feel free to call our agents at (855)294-9026. There’s no obligation, and they can answer most of your questions instantly.
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