Auto insurance is mandatory in almost all states in the US. Many people assume that they have to pay a huge sum by way of auto insurance premiums, but that is not true. There are a lot of discounts that you can avail from your auto insurance company and that is something that most people are unaware of. Given below are some of the discounts that will help you in lowering the rates when you renew your auto insurance policy in North Dakota.
If you are driving a hybrid vehicle, an electric car or one that uses any other kind of alternative fuel you may be eligible for an alternative fuel discount. If you are thinking of purchasing a hybrid, check out the insurance companies in your area to see if they offer a discount for using alternative fuel.
Combining Your Coverage
If you bring your life insurance policy to the same company that provides your car insurance, you may qualify for a discount. In fact some carriers will reduce your rates if you have your car, health, life, homeowners or renter’s insurance all with them. The best part is having everything under one roof makes it easier for you as well.
Compare Insurance Costs
It is very important to shop around and get multiple quotes before you purchase auto insurance and make comparisons. There are a number of websites that will offer the insurance products from various insurers. You must first have a list of what you want in your policy. If you have any doubts you could either contact the insurance provider directly or go through an agent.
Increased Premium Costs – Factors
The price of insuring your vehicle will depend on the value of the vehicle, the estimated cost to repair it, the safety record, likelihood of theft, area you live in etc. For instance, if you have to insure a sports vehicle, you will obviously have to shell out much more than insuring a regular family vehicle. This is because a sports vehicle is more likely to be driven by youngsters who will have very little experience on the roads. Added to that the sports vehicle is obviously associated with speed, which also increases the risk of being involved in accidents. The other factor is the replacement of parts or the cost of repairing a sports vehicle – which is prohibitively expensive and hence the increased premium costs. These vehicles are also more jazzy and likely to get stolen – increased likelihood of theft. There is no way you can avoid the high premiums in these vehicles.
Install Safety Devices
Most insurers generally offer discounts if the car has features that will reduce the overall risk of injuries or the incidence of theft. For instance, installing safety devices in the vehicle will help in availing huge discounts.
Believe it or not there are some companies that offer a discount to new parents, grandparents or legal guardians of children who live in the household and are six years old or younger. Check the requirements and restrictions of this discount but it is certainly worth checking out.
Young Driver’s Classes
Discounts may apply to drivers under the age of 25 who live with their parents and have had no citations or violations in the past three years. Some companies reward young drivers who participate in defensive driving classes. The more educated the young driver is about the rules of the road, the better prepared he or she will be.
Setting up your Payments
You could pay less for your insurance if you set up electronic funds transfer of your premiums when you purchase your policy. Some companies give an even larger discount if you pay your policy in full each year.
Multi car discount
If you have more than one vehicle in your household you certainly qualify for this discount. Most companies will give you lower rates if you insure more than one vehicle under your policy. The cars must be housed at the same location and driven by family members who are residents of the household.
Reduce Coverage on Older Vehicles
When you insure some of the older vehicles you can consider dropping some of the comprehensive and collision coverage on older vehicles. For instance, if your car is not worth more than 10 times the premium cost, then purchasing all the additional coverage may not make sense. Banks and auto dealers will be able to estimate the worth of your car. Ideally, you must review your coverage at the time of renewal to ensure that your insurance requirements have not changed.
Check to see what the age requirements are from your insurance agent. Some discounts apply if you are 50 or older and some require you to be 55 years of age or older
Make sure you always check with your insurance agent to see if there are any discounts available for you and your family members. And always update your information every time you renew your policy.
Simple Things That Can Get You Discounts
Very often, we end up looking at the complex things in life and ignore the simpler things. Auto insurance discounts for instance, can be availed by following a few simple tips. You can literally save hundreds of dollars every year by following these tips. All you need to do is to use these factors to your advantage and convince the insurers that you are a safe bet. Insurance companies will give you discounts if you can show proof of whatever you claim. You should be careful while negotiating if you have to get the best discounts.
If you live in sparsely populated regions, you could easily claim for discounts because there is lesser risk involved as there will lesser number of accidents. In addition to this, you can also claim for discounts if your place of work is very close to where you live. If the distance you commute is very less, you can claim discounts for less mileage.
Credit rating is very important and with a good rating you can make considerable savings on your premiums. If you can prove your creditworthiness, you will be considered as someone who is less risky.
Students should aim at getting good grades while they are in college. Being a good student can help in getting discounts on your premiums as well.