Auto insurance companies offer premium reductions, special insurance rates or discounts. These you should take advantage of to save even more on your auto insurance. Here are some of the premium reductions, special insurance rates or discounts that you can avail of.
a. Low mileage discounts
Your daily exposure to risk is determined by the distance from your house to work or school. It also determines vehicle use whether it be business or personal use. The average distance you drive annually or how far you commute from or to school or work is the calculation base of your premium. Therefore, you will have a lower premium if you drive in a shorter distance.
b. Good student discounts
Students who are currently enrolled and have good grades receive a discount on auto insurance. Many insurance companies offer “Good Student” discounts for young drivers who maintain a “B” (or 3.0) or above “B” average. Discounts are also offered to those family members who are attending school away from home.
c. Multi-car discounts
You can have a much lower premium if you insure two or more vehicles in one policy.
d. Other policies
By availing of other policies with the same company your premium will be reduced. Life insurance policy or homeowner’s insurance policy are examples of other policies. So if you insure your vehicle and home with the same company you will be entitled to a discount.
e. The safe vehicle discount
Many insurance companies offer discounts for anti-theft devices installed on your vehicle, like alarms and anti-lock brakes, as well as various safety devices, such as airbags and factory-installed mechanical seatbelts. Installing these devices can earn you discounts.
f. Age – Being at least 25 years old
25 years old and above are believed to be more responsible, so the risk of at-fault accident decreases, and auto insurance premiums tend to be lower. Risk assessors have determined that those under 25, due to their immaturity and inexperience in driving, are more prone to accidents. Driver’s rate is calculated in a different driver class.
g. The good driver discount
Your insurance policy can be cancelled by your insurance company on your renewal if you got involved in an accident and/or you’re given traffic tickets. Discounts are given to drivers who have not had accidents and received tickets for 3-5 years. Discounts are also given to those who have completed a driver’s training course.
h. Avoiding installment fees
Most insurance companies charge service fees for installment payments. So instead of monthly, you can save on premium if you pay 6 months of your auto insurance premium in advance. Buying a 12-month policy can save you even more.
i. Prior insurance
Some insurance companies offer discounts to those who have been continuously insured for the last 6 months or more.
j. Good credit score
A good credit score can lower your rate as insurance companies usually adjust rates by judging your risk.
k. Car pooling and use of public transportation
Some insurance companies offer discounts to drivers who often use public transportation and carpooling. The idea is the more you use car pooling and public transportation, the less you drive your vehicle, which means the less likely you are to have an accident.
Author Fred Gagnon is an expert on providing tips and information on jewelries. He owns a wide collection of beautiful, glamorous and chic jewelries. To learn more about jewelries, accessories, precious metals and gemstones, visit Peridot Rings and Princess Cut Engagement Rings.
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