Types Of Discounts On Auto Insurance

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Types Of Discounts On Auto Insurance

Auto insurance discounts come in a variety of forms and vary company to company. Following are some of the more common car insurance discounts available:

There is the bundling discount, which means that if a person buys multiple types of insurance such as home-owners insurance, life insurance, and auto insurance from the same company, then they will likely receive a discount for the total insurance package (“bundle”) that is purchased.

In some instances, the greater the number of policies bundled, the greater the discount. Be sure to shop for the policies separately as well so that you have a good idea of the discount you’re being offered.

You may find a company that offers just the opposite, a discount for not bundling!

Some insurance companies provide discounts (in some instances up to 30% off the original premium) if you purchase a car with safety or security equipment, such as passive restraint, anti-lock brakes, anti-theft devices, front and side-curtain airbags.

If your car didn’t come with these features, you can still earn credit through many insurance providers by having them installed after market. Be sure to analyze the cost of the installation with the cost savings through the insurance discount.

Still, the added safety or security may be worth the peace of mind. It depends greatly on the equipment type and the insurance company, but it is a discount worth seeking.

The good driving discount is well known, even though it is not offered by all companies.

However some companies offer discounted rates (beyond the initial quote) to drivers with no current violations. If driving infractions are incurred, the premiums will rise accordingly.

What qualifies a person for a “Good Driver Discount” can vary from one insurance company to another. Sometimes there are other factors applied (residence, age, and where a car is parked most of the time).

This is certainly another discount that is not fixed and varies depending on the company offering it. Still, a driver may save up to 20% if they qualify, so it is a discount worth taking into consideration.

Taking safe driving courses is another way to get a discount on auto insurance rates. This is also not offered by every company, but most do give a noticeable reduction.

It can represent as much as 10% off the insurance premium. In addition, a person may end up learning some important defensive driving techniques that can actually help avoid an accident while on the road, therefore saving money and keeping family members safe and sound at the same time.

The “Good Student Discount” is the one that absolutely varies from company to company in almost every aspect.

However, if a person fits into the category defined as “good student discount” by the insurance company, then money can be saved on the car insurance policy.

In fact, companies often provide discounts starting with 10% and even going higher depending on the student’s continued performance.

The theory behind this discount is that good students are better drivers, but generally the discount only applies to full time students.

The qualification to fit the good student profile is not universal and each insurance company will have their own restrictions.

Similar to bundling, multi-car insurance discount means insuring more than one car under a single policy.

Most companies offer these types of discounts but the amount can vary depending on a lot of factors such as the model and year of the vehicles, the number of cars being insured, and other aspects.

There are also other types of discounts such as those determined by the payment method, low mileage, and specific club memberships.

The most important thing to remember is to check multiple offers before making any final decision.

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