Auto Insurance Quotes, Claim Advice, Coverage & Policy Tips

Auto Insurance Quotes, Claim Advice, Coverage & Policy Tips

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SOURCE:
http://www.autoinsurancetips.com/buying-tips/discounts 


BUYING TIPS : DISCOUNTS

Get auto insurance discounts with our buying tips from expert authors who bring you 100+ years combined experience in insurance and auto safety. Learn how to shop smart when comparing policies, what questions to ask your insurance agent or company, and what aspects of your demographic, your vehicle, or your driving history can qualify you for lower rates. These auto insurance buying tips will help you get the best possible coverage on your budget by knowing what discounts to look for, ask for, and earn.


Multi-Policy Insurance Discounts: What to Know to Save Money


If you own a car, or more than one car, and you own a home, (or more than one home, for that matter), you may be eligible for a multiple policy, aka, multi-policy discount on your insurance. That means a savings of anywhere from 5% to 10% or more on your policies depending on your insurance carrier. If you need different types of insurance policies, such as homeowner’s, life insurance, health insurance, disability insurance and auto insurance and you purchase them from the same insurance provider, you have a good chance of getting the auto insurance policy at a discounted rate. Insurance companies appreciate more business and one way of showing their appreciation is by offering special discounts.

Some insurance carriers that provide commercial lines (business) policies, will allow you to combine those with personal lines policies such as homeowners’ and auto for significant insurance discounts as well.

Do your homework

You can potentially save a fair amount of money by having all your insurance needs fulfilled by one insurance company. However, while nearly every insurance company offers multi-policy discounts, shopping around for prices is still your best bet to finding the best deal. Bringing all your insurance business to one company might give you a break over paying full price for each policy, but be careful because you could wind up paying more than you have to, even with the discount. Add up all your premiums and make sure having several policies with one insurance provider is saving you money over all. It is possible that you can save more by buying different policies from different insurers.

For example, suppose you get quotes from several companies while shopping for various policies:

• Aardvark Insurance offers you:

Auto Insurance: $2587
Homeowners’: $1310
Life: $2520

• Boilerplate Insurance offers you:

Auto Insurance: $1312
Homeowners’: $2712
Life: $2124

• Cardplay Insurance offers you:

Auto Insurance: $3330
Homeowners’: $2568
Life: $1714

Obviously, the company offering the cheapest rate for auto insurance (Boilerplate) doesn’t have the lowest rate for any other policy. If you get all three policies from Boilerplate, they offer you a 10% discount, though. Terrific, you say! A multi-policy discount! So this is how it turns out with the discount: $1312 + $2712 + $2124 = $6148 – (10% of $6148, or $614.80) = $5533.20 for all 3 policies. Not bad, you’re thinking. Okay, now add up the least expensive policy for each type of insurance if you were to buy them separately. You have auto insurance from Boilerplate for $1312, homeowners’ insurance from Aardvark for $1310, and life insurance from Cardplay for $1714. Do the math! That totals $4336! You tell me which is the better deal.

How do you know which way to go?
Even though you would get the multi-policy discount if you bought all your policies from one, you would not save as much as you would by buying from several insurers in this situation. Saving $1,197.20 should not be overlooked. But how do you know which would serve you better considering that someone else with different quotes for different insurance from various companies might be served better by a multi-policy discount?

Your best bet is to get a large number of quotes from many insurance providers for each policy. Contrast the sum you’ll pay by buying from insurers who have the best quote for each policy with what your agent says you will get as a multi-policy discount for buying from one insurer. Then make your well-researched, well-educated decision.

 

Buying Discount Auto Insurance: 10 Reasons Why It’s Called "Discount"

 

There are a number of different things you can do to obtain discount auto insurance. Most of the discounts can be combined to maximize your discount such as a good driver, multicar and multi-lines discount combined on a single auto policy. Below are the top 10 discounts you can obtain and why.

1. Buy other policies with the carrier
The more various policies that you have with a single insurance company will assist you in obtaining a discount off your premium. If you have a home owner’s policy along with an auto insurance policy, your premiums for both will typically be about 10-20% lower than the standard rate.

2. Good Driver Discount
This varies by state, but inside California if you have been licensed for the previous 3 years and have not had more than one violation point during that time and were not in an at-fault accident that resulted in death, total loss, or damages exceeding $500, then a Good Driver Discount tends to be at least 20% below what the insurance company would typically charge for the same coverage.

3. Profession Discount
This is an auto insurance discount offered to various professional groups such as engineers, scientists, teachers, or doctors to name a few.

4. Renewal Discount
The longer you have been with an insurance company, the more profitable you are to them. As a result, they want to keep you as a policy holder by offering a renewal discount which is usually up to 1% to 10%. This discount begins after 3-5 years and gets larger the longer you are with them.

5. Persistency Discount
This is a small discount offered for people who have had consistent insurance without a lapse in coverage.

6. Student Discount
The student discount is a discount that usually applies to persons under the age of 25 who are a full time student, unmarried, and meet the grade requirement set forth by the insurance company. Usually the grade requirement is a B average.

7. Theft Recovery or Deterrent System
This is a discount off of your comprehensive coverage for having an alarm or theft recovery system. This is one that you would be smart to consider because the cost of the alarm or recovery system may not be worth the potential savings. From my experience the savings for this is minimal and it is worth it to ask about the savings before you add one if you don’t have an alarm.

8. Multi-Vehicle discount
Having more vehicles than you have drivers will assist in obtaining a lower rate. When you exceed a single vehicle with a single operator, the rates will be discounted because the amount of use that each vehicle will experience tends to decrease and the risk exposure will also drop.

9. Mileage Rating
If you drive less than 12,000 miles per year your premiums will typically decrease. The only issue with the discount is that if you do drive more than the miles reported, you may run into issues if you file a claim. You may need to report your current mileage at the time of the policy change and then report your current mileage at each renewal in order to obtain the discount since mileage above the reported amount will typically lead to a slight increase in premium.

10. Passive Restraints or Airbag Discounts
Buying a vehicle with various airbag or restraint systems usually gets a discount since the level of safety within the vehicle increases and the potential exposure to loss decreases.

 

SOURCE:

http://www.autoinsurancetips.com/buying-tips/discounts