Nearly every insurance company offers discounts on their car insurance products and tries to tell you they are the best in the industry. However, if you’re looking for the lowest rate possible, you need to make sure you understand the different policy products in order to avail the best discounts.
In this post, I’m going to tell you some of the best car insurance discounts and what you need to learn about them.
Multi Policy Discount
Multi policy discount is your best chance of getting the highest car insurance discount. Many insurance companies try to offer the best discount possible when you choose them to insure both your car as well as your home. The rate of discount could be as high as 20% in case of multi policy. If you have a home, try to find an insurance carrier that can club both your home and car, and offers an attractive discount on a multi policy.
Multi Car Discount
Multi car discount is a great way to get a lower premium. When you have more than two cars in your home, you should try to insure both of them with the same insurance carrier under the multi car policy in order to get the discount. It also saves time in terms of filling out paperwork.
However, multi car discount may not always the cheaper option for you. Usually, the premium for a teen driver is higher. So, if one of the members on your multi car insurance policy is a teenager, you may end up paying more rather than save it.
Speak to your insurance agent to find out how you can save on a multi car policy.
Financial Stability Discount
Insurance companies have done enough studies to establish the correlation between low insurance credit score and high claim activity. In other words, insurance carriers believe if you have a lower insurance credit score, you’re more likely to claim. Likewise, if you have high insurance scores, you’re less likely to claim. Therefore, if your insurance credit scores are higher, the insurance company will reward you with a financial stability discount in hopes for low claim activity.
Good Driver Discount
One of the most common and easy ways to lower your car insurance premium is to become a good driver. Many insurance companies usually offer good driver discounts to drivers who haven’t an accident or ticket in the past three to five years. A good driver discount is applied per driver. If every driver in a household could receive this discount, the overall car insurance premiums can go drastically down.
Good Student Discount
In general, car insurance premiums are usually very high for young drivers. However, young drivers can still lower their premiums simply by availing good student discounts offered by many insurance carriers.
If you have a 3.0 grade point or higher, you can qualify for good student discounts. Similarly, colleges students with 12 credit hours or higher can also qualify for this discount.
Insurance companies have reasons to believe that if a student spends a lot of time studying, they are less likely to drive or get into trouble behind the wheel. Hence, they reward them with a good student discounts.
Homeowner discount is a special type of discount many insurance carriers offer homeowners because they believe a driver having owned a home have more stability than a renter. If you own a home, then you can lower your car insurance premium by available homeowner discounts. Even better, if you can combine it with a multi policy discount and receive two discounts altogether.
If you read your insurance documents carefully, you can find more ways to avail discounts and reduce your car insurance premiums. If you’re a homeowner, you can go for multi policy and save quite a lot on your premium. You can also check your driving record and keep it clean in order to get a cheaper car insurance quote.