The Most Common Car Insurance Discounts

Most drivers are not willing to pay lots of money in order for their coverage to be effective. This creates problems, because some states have a very large number of underinsured or even uninsured drivers. And it all leads to a vicious circle where high risk drivers with little or no insurance stand low chances of finding cheap car insurance. However, car insurers try to encourage responsible driving habits and the recognition that having coverage is crucial by offering discounts. And the best way to find these discounts is to use online auto quotes.

Generally, auto insurance discounts fall into three broad categories: driver discounts, vehicle discounts and policy discounts. Driver discounts are offered based on driving history, age, professional occupation and organizations and student status for younger drivers. These are: good driver/claim-free, good student, auto club, professional organization, low risk occupation, driver training (defensive driving course) and low mileage discounts. Vehicle discounts, on the other hand, are offered for safety add-ons to your vehicle, such as anti-lock brakes, anti-theft protection devices or passive restraints. They are also available to people who use alternative fueled cars such as hybrids or electric vehicles.

Policy discounts are not directly related to your habits as a driver or the state of your vehicle, but rather the type of “package” you choose when buying car insurance. These are multi-vehicle, full payment, renewal/customer loyalty, bundling and homeowner’s discounts. These discounts are all based on factors which make writing your policy easier, such as having more than one vehicle on your car insurance policy or combining your vehicle and homeowner’s insurance. The way in which discounts are given can vary between different auto insurance providers, so it is best to use online insurance quotes and find the most advantageous discounts.

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