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Auto Insurance Reductions: What To Ask About When Choosing Your Insurance Plan


By Prev Info - February 02, 2022

The average car insurance policy costs between $50 and $100 per month. Depending on your age or the type car you are insuring, your premium could be much higher than this. You might be eligible, however, for discounts that significantly lower your premium. Not all states require insurance providers to inform potential buyers of discounts they may qualify for. That means it’s up to you, as the customer, to read the fine print on the policy, and specifically ask one of the provider’s representatives about common discounts the company may offer.



Installment fees.

 

Insurance companies often charge additional installment fees if you pay on a monthly basis. Ask the provider what the installment fee would be; if it is significant, find a way to pay your yearly premium up front for a saving.


Low mileage.

 

Some insurance companies lower premiums for low mileage drivers. If you mostly use the car for short distances and don’t use it that frequently, you might qualify for this discount.
Multiple vehicles. Many insurance providers offer discounts if you insure more than one vehicle with their company. If you or your family have two or more vehicles, this could lead to significant savings.


Safe driving history.

 

Does the company provide premium reductions for policy holders with a clean driving record for the past three or more years? Driving courses. Ask whether your provider offers special discounts for drivers that have taken special courses, such as defensive driving.


Financial stability. 

 

Insurance providers might offer deductions for customers with a high credit score.


Safety features. 

 

Installing added safety features on your car might lower your premium. Ask your potential provider what safety features are required for a discount.


Anti-theft features. 

 

Taking measures to protect your car from possible theft, such as installing anti-theft locks or car alarms, can lower your premium by up to 25%.

Environmental protection. 

 

Some providers offer discounts to support green living and environmental responsibility. Your premium might decrease if you own a hybrid car, or if you “go paperless” with your policy, requesting all statements and communications to be electronic.


Academic success. 

 

Parents with children studying at college may qualify for a special rates based on their child’s grades. Allstate and State Farm both offer discounts for parents whose college aged children maintain high academic standards.


Employment. 


Find out whether you qualify for a discount based on your profession. Geico, for example, offers a discount to customers that are actively serving in the military. Liberty Mutual and Farmers Insurance offer discounts to teachers. Nurses, doctors and dentists, and other public servants might qualify for career based discounts as well.

Association. 

 

Some providers have partner associations and offer special rates to customers from those associations. If you belong to an association, find out whether you qualify for a special discount from an insurance company.


Loyalty. 

 

Some providers offer future deductions if you stay with them for longer than a year. Find this out in advance – it might be worth toughing out a high premium for a year if you will save considerably in future years…


Accident forgiveness.

 

 Premiums go up considerable after a driver has been in an accident. Some companies have a “forgiveness policy”, indicating that your premium won’t be raised unless you have two or more accidents. Even safe drivers sometimes get in an accident due to various sets of circumstances out of their control; if this happens to you, having an insurance plan with a forgiveness clause can be a great advantage.


Auto club membership.

 

If you belong to AAA or a different auto club, find out whether the provider offers discounts to auto club members. Also, ask to see a detailed list of coverage and services included in the policy. If any of the services, such as towing, are already covered by your auto club, request them to be removed from your policy to increase your savings.

While it’s unlikely that you qualify for all of the possible discounts mentioned here, you probably qualify for several of them, or could qualify if you took a few simple measures, like improving your vehicle’s safety or anti-theft features… Decide which discounts you are most interested in, or could amount to the greatest possible savings, and look for a provider that offers those reductions.






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