Do you qualify for a car insurance discount? Don’t wait until your insurance policy needs to be renewed to find out what types of insurance discounts are available to you.
How Car Insurance Rates are Calculated
Insurers reward drivers who have fewer accidents and claims. If you are a remote worker, since you do not use your vehicle as often as other drivers, you may be eligible for a car insurance discount.
In some states, discounts are given to encourage good driving and responsible behavior. You may be eligible for a discount if you are a good student or if you complete defensive driving courses.
When it comes to determining the price of your insurance premium, the following factors are taken into consideration:
- The base rate is determined by your risk factors
After the agent reviews your information, they will inform you of changes you can make to receive a car insurance discount.
Chasing discounts may seem tempting, but make sure you do not overspend in the process. For example, newer technologies, such as anti-theft devices, alarms, and kill switches might come with a bigger car insurance discount, but often the devices are not as effective as advertised and can cost as much as the discount savings.
Types of Car Insurance Discounts
Discounts vary widely with different insurance companies but there are three main types of car insurance discounts.
The Good Driver Discount
Your driving history plays a huge part in how much you will pay for car insurance. Other factors that affect your premium are age, gender, and student status. Drivers who rarely use their cars on a daily basis are more likely to receive a discount due to their low-risk potential.
Other common good driver discounts are:
- Claim free driver discount
- Good student discount
- Low-risk job discount (including remote jobs)
- Driver training discounts
- Low mileage discount
If you have not made a claim, been in an accident, or had a speeding ticket for at least three consecutive years, you may be eligible for a discount.
If you are a student, you have a higher chance of receiving a discount if you make good grades because you are considered to be responsible. You may receive a premium insurance discount for doing well in school. Students who recently graduated may be eligible for discounts as well.
If you are willing to complete defensive driving courses, it is likely your insurance premium will be reduced. All of these factors influence whether you are a good driver in the eyes of an insurance company.
The car you drive also impacts the cost of your premium. Many insurance companies reward features that lower your risk of severe injury or theft.
However, you should make sure paying for extra features will not cost you more than what the discount will save you. You may need to speak with a professional about what type of features will benefit you the most.
Car features that may help you receive a discount include the following:
- Safety equipment (airbags, automatic seatbelts, anti-lock brakes, anti-theft devices, etc.)
- Alternative fuel (hybrid vehicle or an electric car)
- Having a newer vehicle
If you can save the insurance company time and resources, you will most likely receive a discount as well.
You can make your agent’s job easier if you:
- Pay your entire premium in full
- Renew the same policy every year
- Combine your home insurance and car insurance policies
- Insure more than one vehicle on the same insurance policy
- Own a home
Remember, not all insurance companies offer the same discounts. It is wise to compare companies before purchasing a car insurance policy.
At Olson Insurance Agency, we are dedicated to providing you with the coverage you need and being transparent throughout the process. Contact us today to find out if you qualify for a car insurance discount!