In competitive auto insurance markets, such as the current market, insurance discounts can make or break an insurance deal. It is important to each consumer that they get every discount available to them. By knowing what discounts to look for and how to get them, saving money on insurance will be much easier. Additionally, some of the larger direct auto insurance companies will advertise discounts in not always available in certain States. It is best to contact the insurance company directly to determine whether an advertised discount is available in the State of residence.
One of the more common auto insurance discounts you see now days is the multi car discount. It is applied any time there is more than one vehicle on a policy. This discount can be quite significant, especially when adding a liability only vehicle to a full coverage policy.
Another well known discount is the good driver discount. In California these are also called Prop 103 driver discounts, named after a state proposition regulating insurance rates. This discount is the most significant discount available and is lost whenever a driver has 2 or more points on their driving record.
A good student discount can make a significant difference for a new driver. Always a high risk, young drivers who are still in school can keep their rates down by maintaining a certain GPA. This varies slightly from company to company, so be sure to inquire.
Many drivers have started taking driver safety courses through a local driving school or community college. These courses usually last a couple of days and will net the consumer a significant savings on their auto insurance. Courses such as these can be found online and are usually offered in most communities.
Another discount that some consumers may seek is the loyalty discount. Insurance carriers offer this as an incentive to stay with them instead of switching to another company. The behind this discount is that the customer will save more money over time by staying rather than switching to save a few dollars a month. These policies have a time requirement before you are eligible and not every company offer these types of discounts.
As each state has different regulations regarding insurance discounts, it is important to check with each insurance company regarding discount restrictions within the State of residence. Insurance discounts are a great way to keep rates low and create competitive between companies. The more competitive the insurance companies get for polices, the lower the rates are for clients.