Auto insurance discounts – what’s the big “deal”?


In a scenario of rapidly increasing need for fast transport the world over, a car has moved from being one of the luxuries of modern life to being a basic necessity. Given the sheer range of automated, personal transport systems available today, we need to aware of the impact of our choices in the matter. It is not enough to stop at choosing the right car for us – we need to hopefully keep the car on the road. Next to fuel, the most important requirement for this purpose is auto insurance. But human beings are nothing if not basement bargain hunters – when we talk about auto insurance, can auto insurance discounts be far behind?

Auto insurance discounts are a function of several factors and due attention to them will automatically ensure higher discounts. When you look for a job, your qualification matters and so does the school you went to. Similarly, insurance companies give higher discounts for drivers who take certain state approved driving courses and also maintain a certain grade point average therein. Qualifications apart, you have to prove your skills on the job! That is where a good driving record comes to your aid. Typically, good drivers with a 3 year driving record, which is clean to boot, can look forward to bigger discounts.

As in any other business, auto insurance providers also look for the bigger buyers – the more you buy, the better the deal and the fatter the auto insurance discount. So when you insure multiple cars with the same auto insurer, you are assured of better rates. The rationale is that when you have more than one car, the probable risk of accidents per car is reduced. Bundling car insurance across cars belonging to different members of the same family sweetens the deal leading to bigger discounts. The concept of such bundling may be extended beyond car insurance and linked to related products like life insurance, home, personal accident and other such insurance policies resulting in bigger size buys and incentivizing better deals for and from the insurance companies.

Auto insurance discounts are also linked to the cars you drive and the fittings therein. Certain models of cars, say family cars like sedans are insurance company favorites and attract higher discounts. These are based on historical buyer personality profile and accident records associated with the specific models. Augmenting car safety with the use of safety enhancing fixtures is beneficial to size of the discount. Safety features like airbags and automatic seatbelts are discount enhancers. Anti theft devices like automatic alarms and anti lock devices are beneficial to your health and that of your discount.

In case of auto insurance discounts, as with everything in life, the devil is in the details. Research both on line and ask around before you make a decision. It may be advisable to make a “reconnaissance” call to learn about the information required and seek answers to your queries. Inform the company person that you are shopping around as this may motivate him to ask further, relevant questions and explore options to arrive at the best deal for you.