Auto insurance is expensive, and it can be even more expensive if you do not have a good driving record. Various factors can affect your auto insurance rates. But since almost every state has made it mandatory to have liability (and some more) insurance policies, expensive policies have turned into necessities. But it is not necessary that you pay a high amount for car insurance. There are many ways you can save money by knowing about different car insurance discounts. Even though the discounts can be minor, it is still better for you, the consumer.
Save Money Before Buying Policies
No matter how many discounts you collect and use, nothing could help the loss of choosing the wrong car insurance company at an inflated price. This is why it is said that you need to save money before you’ve spent it. What do we mean by that? Choosing the most affordable and suitable car insurance is the first step in saving money and getting great coverage at the same time. Before you buy any policy, make sure that you have compared at least 5 different car insurance companies and their plans.Be specific about your search when you are looking for car insurance quotes online. For example, if you are a resident of Nevada, then look for cheap car insurance in Nevada and select the option that suits your needs the best, at the lowest cost. After you have selected the best car insurance company, then move on to saving more money by getting discounts. Here are all the different discounts, and how to get them.
No-Claims Bonus
The best discount that you can get is the “no-claims” bonus. As the name suggests, the no-claims bonus is awarded to people who have had a policy period with zero claims. So if you buy a car insurance policy and do not make an insurance claim during the policy period, you get a discount when you renew it. The discount ranges from anywhere between 3% to 5% for the first year. If you do not make any claim in the second consecutive year, you get a 10%-15% discount, and not making any claims for the third consecutive year will get you a good 20%-25% discount. So avoid making unnecessary insurance claims and with time and patience, you can save a good amount of money.
Good Student’s Discount
Car insurance is expensive for a lot, but it is the students and teenagers who suffer the most. Since age is a factor used to determine insurance rates, young people (under the age of 25 years) are charged the most. So if there’s anyone who needs some good discounts on car insurance, it is teenagers. Here’s something uplifting; almost all the major car insurance companies offer discounts to students with good academic performance. This “Good Student” discount can be availed by contacting your insurer. The requirements may vary from company to company, but people with a good GPA will be given a decent discount. So contact your insurer now, or focus on your assignments, and get good grades and discounts on auto insurance. Win-win.
Safety Equipment Discount
Auto insurance companies want your car to be safe, away from accidents and theft. And if in any way you can help in ensuring that your car is safe with the use of safety equipment. For example, if your car has ESP, ABS, etc, it helps in avoiding accidents. Since the risk of an accident is low, car insurance will happily give you a minor discount.Not just that, even if you install devices like anti-theft units in your car (which helps in preventing car theft), insurance companies offer discounts here as well. So if your car is new and expensive, it is better to add these devices to improve safety. This will get you a discount and keep your car secure. On the other hand, if you have a car that is older than 8 years and you think it does not require collision and comprehensive insurance, you can drop these two policies. It is better to pay for the repairs yourself than make an insurance claim, lose your “no-claims” bonus, and then pay the deductibles as well.
Multiple Cars/ Multiple Policies Discount
Did you know that if you have more than one car, or if you own more than one insurance policy, you can get some sweet discounts? These discounts are called multiple car policy discounts or multiple policies discounts. In multiple car discounts, if you add multiple cars to your policy, you get a discount. Although the discount might be small, it is still better than not getting any discounts. The second (and more popular) one is the bundling of policies. In bundling, if you buy two or more insurance policies from the same insurance company, you get a discount on the combined price. For example, if you buy homeowners insurance and car insurance from the same company, you get a good discount
Veterans Discount
People who have served get special discounts from almost all the car insurance companies. While USAA is specifically made for army veterans, other major auto insurers such as Geico, Allstate, etc offer great discounts to military personnel.
Conclusion
So that was all about the different discounts that you can get and save some money. Just remember that for every discount, you’ll have to contact your insurer or your insurance agent, get all the details, and that’s it.If you qualify for the discount, you get it. So start saving money, and remember to drive safe and stay insured.