Auto-Insurance is an insurance that protects you and your car for a small price you pay every month as a premium to the auto-insurance company. Unfortunately, even though most states have a mandatory law of having auto-insurance, almost 16% of Americans drive without auto-insurance. This is mainly due to the wrong assumption that auto-insurance is very expensive. There are ways in which you can avail these policies are lower rates. Here are a few discounts you can consider availing to lower the premiums of your auto insurance policy.
There are a number of discounts you can avail while buying auto-insurance. Some of them are as follows:
- No Claim Bonus: If you have a clean driving record without making any claims the entire year the insurance company will see you as “safe-risk”. Hence the company gives you a bonus of 20% on your premium. If you haven’t made any claim for 2years when you renew your policy it goes up to 25%. The maximum is 50% discount that you can avail. This discount will be applicable to any car or motor-vehicle you may purchase.
- Paying voluntary excess deductible: In case of an accident, the minimum amount you agree to pay before the insurance company intervenes to pay is called the deductible. If you choose to pay a higher deductible than the minimum amount, the company gives you a discount.
- Employment details: Being part of certain organizations and associations you will get discountwhen you provide the required identification. Some professions get better discount rates like Nurses and doctors as they are considered low risk category. Farmers and ranchers also get a discount on their auto-insurance.
- Multi-person policies: You can avail discounts if you put down names of the safest driving person in your policy form.
- Group Insurance policies: These policies are given to trade organizations, unions or companies or certain exclusive clubs.
- Multiple car discounts: If you own more than one car there is a high possibility that you can avail a discount on your second car’s insurance policy. Insurance companies depend heavily on multiple-car owners; sometimes you might even get a free insurance on your second insurance.
- Time period of the Insurance: If you take an annual insurance policy you can avail a discount. The advantage is that even if insurance company raises its premium rates mid-year, your rates would still be the same as the original amount.
- Age factor: You can avail Retirement discounts as retired people are considered to travel less. There is also College discounts; these apply to those who might travel back and forth to their home after they join a college.
- Passive Restraint discounts: If your car has safety features like seat-belts, ABS, car-lock systems, air-bags, anti-theft devices you will be eligible to avail this discount.
If you research on the various types of auto insurance policies you can choose from and shop around and also enquire from Insurance agents you will get discounts on your auto-insurance which won’t pinch your pocket.
