Many of us have become quite skilled at saving money. We clip coupons, compare prices in ads, time our shopping to coincide with sales, and take advantage of promotions like senior discounts or two-for-one service offerings. So it may come as a surprise to learn that many folks aren’t as aware when it comes to finding and benefiting from discounts on our auto insurance policies.
A survey conducted by InsuranceQuotes.com reveals that about two out of every five U.S. drivers either do not receive a break on their premium from their auto insurer or are unsure whether or not they do. That means that when it comes to negotiating auto insurance rates, many Americans are practically leaving money on the table.
Some Auto Insurance Discounts Are Obvious
It should be noted that U.S. drivers aren’t completely in the dark about auto insurance discounts. The survey found that 81% of respondents are aware that taking a defensive driving or similar course can result in a break on their premiums. And 89% of them understand the concept of “buying in bulk” — or putting more than one vehicle on an auto insurance policy — that allows them to pay less for coverage on the additional vehicle(s).
There’s something else: whether or not drivers know they are getting an auto insurance discount is often a moot point. Many of them are getting a price break without doing any extra haggling or investigating. Drivers who own a car that’s safe and boast a driving record that’s clean are automatically paying less than they otherwise would.
Other Auto Insurance Discounts Are Less Well-Known
But not all auto insurance discounts come so easily. The majority of them require a little proactive research on the part of the driver, though this can often be accomplished by asking an insurance company or agent. Some of these diamond-in-the-rough discounts for which drivers may be eligible include:
鈥\xA2 Driving fewer miles per year
鈥\xA2 Putting anti-theft devices (car alarm, vehicle locator systems, ignition locking devices) on your vehicle
鈥\xA2 Buying auto coverage from the same company that underwrites your life or homeowner’s insurance
鈥\xA2 Staying with the same insurer for a certain number of years
鈥\xA2 Belonging to a trade group, labor union, or alumni association
鈥\xA2 Getting good grades in school (for high school or college students)
Does Creditworthiness Affect Auto Insurance Rates?
Finally, there’s the subject of whether a driver’s credit score impacts his or her auto insurance premium. Many insurance companies seem to feel that a high credit score correlates with a low claim risk, and will discount auto coverage policies accordingly, However, this is not the case in California, because insurers are prohibited by state law from using credit scores as a determinant in auto insurance rates. California is one of only three states (along with Massachusetts and Hawaii) which does not factor credit scores into premiums.
So, how do you navigate through all of this? 聽Simple – reach out to Cheap Insurance Tips by requesting a FREE auto insurance quote. 聽We are a licensed agency, currently licensed in 13 states. 聽If you are in a state we are not licensed in, we will match you with one of our national insurance partners that will be able to help you find the savings you deserve.
Categories: Auto Insurance Discounts
Tags: insurance discounts