Finding cheap auto insurance is an objective for almost all drivers because for many drivers auto insurance premiums are paid but never used. Many drivers have never made an insurance claim from damage or an accident which means all the money paid into an insurance premium goes unused. However, paying for an auto insurance premium gives drivers the peace of mind in knowing they are covered in the event an accident does happen. Although this does not and should not deter drivers from trying to find cheap auto insurance.
Discounts can contribute to lower auto insurance premiums. Companies will offer discounts for drivers based on various factors. Knowing what these discounts are can help contribute to lower insurance rates.
Safe driver – The safe driver discount is applied to drivers who have been accident free for a period of time. This time period varies between auto insurance carriers. Additionally, some carriers will require drivers to not only be accident free, but also have a ticketless record in order to qualify for this discount. Most insurance carriers offer a 20% discount on insurance premiums for safe drivers.
Good student – The good student discount applies to drivers in the 16 to 24 year age range. These students must maintain a 3.0 GPA in order to qualify. Verification of GPA must be provided to the auto insurance company every 6 months. This can be verified by either a report card or letter from the school.
Insurance bundling – The insurance bundling discount applies to drivers who not only have auto insurance with a particular carrier, but also have another service offered. This could include home owner’s insurance, life insurance, boat coverage, or various other types of policies.
Anti–Theft/Safety Equipment – This discount can be applied to drivers whose cars have anti-theft devices. This could include remote door locks, alarms, LoJack, or even steering wheel bar locks. Safety discounts can be applied for cars which have side air bags or anti-lock brakes.
Companies will often vary their discounts based on the location and car. Therefore, when looking for cheap auto insurance it is important to ask potential carriers about the discounts they offer.