The Various Categories Under Auto Insurance Discounts


Auto insurance is one of the cases where everyone hopes they never have to use it because it means they have to meet with an accident. Hence most people find it painful to pay higher premiums just as a cautionary thing. However, the costs of damage repairs or liability could be really high in some cases. Similarly theft and other natural disasters too might lead you to incur huge costs, which is why most people are too scared to ignore the insurance even if it is costly. This leaves everyone in a dilemma as to which auto insurance policy to take. However, the better option is to find the auto insurance quotes that offer you a lot of discounts. In this way, you end up lowering your insurance premium, while at the same time you get all the advantages and coverage of auto insurance. These discounts are in various categories.

The first category of auto insurance discount is the discount given to a safe driver. Insurance companies are in business to make profit which is why they charge more to those who are riskier than others.

A safe driver is obviously someone with lesser chances of ever claiming coverage because he or she will avoid accidents. This is why most insurance companies provide discounts to safe drivers. The discount provided is on the back of a clean sheet. Many insurance companies have fixed slabs which means drivers who haven’t broken any rules in a given number of years and haven’t met with a single accident are considered to be safe and hence have lower premium. Secondly, some insurance companies provide discounts to those drivers who have taken certain state approved driving classes which are outside the compulsory driving lessons. Therefore a driver with 5 years of clean sheet will get more discount than someone with 3 years and similarly one with an approved driving training will get more discounts too.

The next category of auto insurance discount is the safe car discount, where the safer the car, the lesser the premium you will pay. A good example is anti-theft mechanism in your car. If you have it, you are less likely to lose your car and claim theft coverage. Hence, you are a safer bet for the insurance company, who would then be willing to give you a discount on your auto insurance. The same goes for other protection mechanisms in your car. As an example, if your car has navigation and protection systems and anti-lock brakes, it is less likely to be involved in an accident which is why you have a good chance of getting a discount on the insurance. Some cars have motorized seat belts installed by the car company itself while other cars have airbags. These cars are safer for those travelling inside, who in turn are less likely to sustain injuries in accidents. This also leads to getting a discount.

One of the most popular policies of insurance companies is to provide discount for multiple policyholders. If you have a housing insurance, then you can get a discount on auto insurance if you take it from the same company. This is because you are bringing more business to the company and you will be in a position to negotiate a healthy discount to lower your premium for the auto insurance.