There are some factors that are often ignored when it comes to obtaining discounts from auto insurance providers. Hundreds of dollars can be saved every year by policy holders on auto insurance if they could use certain factors to their advantage and convince the insurance providers that they are much safer bet. Unless they claim for the discounts by providing the right details and proofs, insurance companies are not going to reduce the premiums. Hence policy holders should make sure they negotiate using the right terms and consider all the factors which are likely to influence their profile.
Geography of the location
On paper, the same amount of insurance coverage should cost the same for all policy holders. However, the risk varies a lot. The chances of a car accident are much higher in a congested city or a route that goes across mountain curves than in case of sparsely populated regions. Hence, logically the risk is much higher for an insurance company too in the former case than in the later case. For this reason, policy holders from less populated cities or regions could claim for a discount in their insurance premiums for the same amount of coverage. In fact, they could also claim discounts if their commuting distance to office is less which is the case in smaller towns compared to larger cities. If the commuting distance is very large as in the case of metropolitans, the chances of accidents are very high and hence premium too goes up.
If your credit score is good you can save something on your car insurance too. A person with higher credit score is considered to be more creditworthy. But it also reflects on the fact that such a person is more responsible and careful. He or she is better at managing things too which automatically speaks higher about them. Hence such individuals can claim discounts with a good chance of getting better coverage for lesser premiums.
Students who tend to do better at college are considered to be more responsible and careful about things. Hence anyone with very good grades at college can claim for auto insurance discounts and more likely to get it. Students with averages over 3.0 out of 5 are considered to be more risk averse and disciplined and hence less likely to be reckless and responsible for accidents. They pose a safer bet for the insurance providers.
Type of Driving
The reason for which the car is used by the individual could be an important factor. Someone, who uses his car once in a while for pleasure or to take his family out, can claim for auto insurance discount. Someone, who commutes daily to work or even worse, someone whose primary income depends on the car, is more likely to travel a lot and hence the chances of accidents automatically increase. Such people end up paying a bigger premium.
If you are a sales guy you might need your car a lot for fulfilling all the appointments you have with clients across the city. However, if you are someone who doesn’t need the car to commute to office or you are a banker, who is stuck to the seat all day, you can claim for a discount in the insurance premium.