Buying a good auto insurance policy that provides required coverage is very important. But many of them buy just the minimum required insurance to lower the monthly premium rates. Knowing different discounts that can be obtained from the insurance companies can help in buying better coverage structured according to the needs of the individual and lower the monthly premium rates. Below are some discounts that can be used to effectively reduce the monthly rates:
Group insurance policies:
Insurance companies offer big discounts if a group of people take the policy together. This usually happens when a group of employees register through the organization or a group of people from a community go in together for the same insurance company. Every insurance company has different conditions when it comes to the nature of the group or the number of people in the group. But inquiring about the group insurance policy and registering with the group if possible is an effective way to obtain big discounts.
Corrective and defensive driving classes:
Almost every insurance company gives special discounts for insurance policy holders when they take a defensive driving lesson and complete the course. Corrective driving classes can be taken when there is a traffic violation and the insurance premium has been increased because of that. Taking corrective driving classes and completing the course can bring down the increased insurance premium.
Automobile Mileage:
If an automobile owner uses the car only for a fixed mileage every month, and does not exceed the set limit, insurance companies lower the premium rates automatically. The mileage limits are set by the insurance companies and they are different in every company.
Senior driver discounts and student discounts:
Special discounts are offered for students with valid identification and a clean driving record. Also, senior drivers with a clean record in road can avail discounts in premium rates.
Periodical policy review:
Insurance policies must be reviewed at least once every year to find out if they qualify for better discounts, or if any change is in order. Sometimes, insurance companies offer good discounts for a complete year if the customers convert insurance policies from different companies. Also, if the driving record is maintained perfectly without a single violation, then the policy holder may qualify for additional discounts for the following year.
Understanding different discounts that are available in the market and determining which insurance company offers the best discounts in the market takes some time and research. But the reduction in the premium rates makes the effort well worth.
