Currently, insurance rates account for almost a quarter of total car costs. The increase in car insurance costs began in 2007 and since then it has only steadily been rising. For example, last year its average cost was about $ 8,500 in annual terms.
Today, if you own a car, you will have to pay a large sum of money for its insurance each month. Besides that, very often you will not be able to use most of the additional benefits provided by the insurance cover. So you simply overpay for your policy. However, there are many options when you can save a lot on car insurance, just a small number of car owners know about it. Here you can find some useful tips to help you get lucrative car insurance discounts.
Types of discounts
Types of car insurance discounts depend on the insurance companies themselves, which independently determine its type and sizes. The right approach to using information about each insurance company will help you to make a profitable choice. In this section, we will present several basic types of car insurance discounts that can significantly affect your insurance premium the size.
Discounts for drivers
These discounts are offered by many companies and represent the following conditions:
- age of the driver;
- complete driving history;
- a general driving experience;
- student status;
- the fact of the membership in professional organizations.
For example, accident-free driving history, as a rule, gives the right to a certain discount from the insurance company. The general requirement here is usually the absence of any accidents in the last three years. In addition, the location of your work and home can also affect the calculation of your insurance premium. Since if you work or live in a safe area, then this fact alone can put you in the category of minimum risk drivers. Conversely, if the area of your work or place of residence is listed as a dangerous zone with a high crimes rate, then be sure that the cost of insurance for this option will be much higher than the first one.
Another factor that can really help in reducing the insurance premium is the passage of an advanced driving course. A confirmation certificate of training completion will help reduce the total amount of your insurance.
Discounts on cars
You can also get a good discount on your car insurance if the vehicle additional security tools are installed. For example, many companies take into account the following technical facilities and devices:
- a special system for anti-lock brakes of the car;
- video cameras and anti-theft devices;
- availability of airbags;
- fully automatic seat belts.
And if you decided to buy a new car, it will also mean a lower risk for the insurance company and therefore a lower premium. Being able to use in your car hybrid fuel may give you some car insurance discounts.
Discounts on your insurance policy
In order to receive a number of additional car insurance discounts, you will also need to provide your insurer with some incentive, which will lift you up in his eyes as a more valuable customer. This incentive may be, for example, an insurance policy for all of your cars, which usually leads to an overall reduction in the cost of your premiums. This option is very suitable for multiple vehicle owners or business owners.
In addition to the options described above, you need to pay careful attention to your insurance company and your budget. The fact that you can easily afford this insurance policy will only lift you up in their eyes. To get such a valuable customer, many of them will start offering you more attractive terms. And if you ensure your car for a long time with the same organization, then you can also qualify for certain discounts for your loyalty.
Besides that, you can combine your home insurance with car insurance and thus get additional savings for your budget.
How to get qualified for such discounts
We have described here a sufficient number of various discounts for car insurance, now it remains only to find out how they can be directly obtained. At the same time, remember that a number of certain factors may interfere with discounts receiving. These factors include a low credit rating and a number of other nuances. So, now we go directly to point out how to get these nice car insurance discounts for your wallet:
- You must pay all your bills on time. As we have said, a bad credit rating can significantly affect the cost of your insurance and, accordingly, the possibility of receiving any discounts. In many states, it is the credit rating that has the greatest impact on the price of your car insurance.
- Change your insurance company. If you think that it cheapest today, then you are totally wrong! Take and compare the cost of your insurance with what other companies offer. However, many companies will certainly try to offer you more favorable conditions just to get you on their list. Thus, it will be possible to save more than one hundred dollars.
- Buy insurance for your car as soon as possible. In case you purchased a new car or just changed it for another, do not over-tighten it with an insurance policy. The longer the car will be without insurance coverage, the lower you will have the total points required for cheap insurance coverage. Remember that the earlier you sign the insurance contract, the higher your chances for all sorts of discounts.
- Choose such insurance option, when it cost directly depends on the time of use of your car. This is the so-called fee for each mile. This option is particularly suitable for those car owners who rarely use it. For example, in order to get to work or get home, these people can use public transport and an ordinary bicycle.
There are many insurance programs of this kind and you can choose any option that suits you. If you take it, you will need to give permission to the insurance company to continuously monitor all your car movements.