Discounts. Discounts. Discounts. Insurance companies are always touting how great their discounts are trying to get your attention. If you are looking for the absolute lowest rate, you need to make sure you have the very best discounts. All car insurance companies offer discounts, but what discounts are the very best? The actual percentage of each discount may vary between insurance carriers; however, these remain the 6 best car insurance discounts among most carriers.
Multi Policy Discount is probably the single biggest discount available on a car insurance policy. Car and home insurance packaged together is exactly the type of business many insurance carriers are looking for and they will work hard to get it. Some offer a discount as high as 20 percent. It is rare for someone to obtain cheaper insurance by separating their car and home insurance through different carriers. If you own a home, always try to find an insurance carrier that packages your car and home policies together.
Multi Car Discount is also a major player in car insurance discounts. Your overall rate is typically higher when you own two vehicles verse one, but per vehicle you are paying a cheaper rate compared to insuring the vehicles individually. For example, if you own two vehicles and are paying $400 for one and $400 for the other, your rate could go up to $490 on one if you sell the other.
Financial Stability Discount is finding its way onto more and more car insurance policies. The difference between the top score and the bottom score can mean a difference of hundreds of dollars each year. Insurance companies have done extensive studieswhich prove a direct correlation between low insurance credit scores and high claim activity. Therefore, insurance companies reward good insurance credit scores with a financial stability discount in hopes of low claim activity.
Good Driver Discount usually applies to drivers that have not had an accident or ticket in the past three to five years. A couple of reasons exist for why this discount is so sizeable. It is almost a combination discount because someone with a speeding ticket not only doesn't qualify for the good driver discount, but they are also surcharged for the ticket. Also, the good driver discount is usually applied per driver. So every driver in the household could potentially receive this discount greatly helping to reduce the overall expense of car insurance.
Good Student Discount as its name portrays, only applies to students getting good grades. Usually a 3.0 grade point average or better is accepted. Also, the normal requirement for college students is 12 credit hours or more to qualify. Young drivers often pay higher rates and insurance companies reward good students with a discount. The theory stands that if a student spends a lot of time home studying then less time is spent getting into trouble behind the steering wheel.
Homeowner Discount on a car insurance policy may be surprising to some. Insurance carriers often offer this discount to clients who own a home regardless if the home is insured with the same company. Insurance companies reward homeowners because they often have more stability than a renter. A homeowner can double dip with this discount by combining it with the multi policy discount; thereby, receiving two top discounts in one swoop.
Use these discounts to your advantage whenever it is possible. Review your car insurance policy to verify qualifying discounts are listed. Remember to bundle your car and home insurance together to receive the multi policy discount. Keep your credit score and driving record in check. If you are not happy with your current insurance rates, some things are in your control to help improve your rate.
