If you’ve been a driver for a while, you probably know the basics of the automotive insurance industry. For our younger audience though, know that the process isn’t that complicated: you pay a monthly (or another period agreed upon) car insurance premium, and all of that money goes into a common pool, where other people are also paying (and benefitting from). In turn, your insurer covers your costs in cases of scenarios agreed upon in your contract (such as collisions or weather disasters). Aside from this understanding, insurers are of course also interested in saving money for themselves, as agents are paid depending on how many clients they have. That being said, you really don’t have to view the situation as something focused on greed, since there are actually a few ways that your insurer can give you a car insurance discount.
That’s because the principle of keeping the customer satisfied isn’t unique to one branch of business. Just like we strive to always leave our customers happy, so do insurance companies also look for ways to make their packages as attractive as possible. What’s more, with auto insurance being mandatory in 47 states, and 2 of the other 3 requiring fees or other types of bonds in case you don’t have insurance, you can be sure that this field is quite competitive. As such, you more or less always have the opportunity of getting a better deal.
The Benefit of Negotiated Rates with a Repair Service
One of the major sources of savings, for both yourself and the insurer actually, is having a negotiated rate with a repair service. The shop could handle the body of the car, the mechanical parts, or they could take care of replacing your auto glass. Whatever the shop’s role is, you’re getting a car insurance discount through lower rates, because the repair shop benefits from repeat business. In fact, you may already be benefiting from these aspects, but not be aware of it. Check with your agent to see if your insurer of choice has any preferred auto shops!
In most cases, the answer will be yes, and using an approved shop will also lower the deductible you have to pay. This depends on the exact procedures you require, of course, but you could even be lucky and have to pay $0 Out-of-Pocket, like with our mobile auto glass repair & replacement services.
Think Carefully About What You Really Need
Your #1 rule should be value shopping. In order to achieve this, consider what you’re likely to need in the future. In many states, going for minimal liability with your plan is the the base requirement, but opting for a better coverage policy, or even a full coverage one, can of course be in your interest. If you drive a truck for example, and are thus on the open road a lot, you’re exposed to certain dangers much more than the usual driver.
You could choose to lower your car insurance premium, but you may end up having a substantial deductible if you get into an accident. However, it all depends on the risk factors that are present in your day-to-day life.
Other Ways You’ll Get a Car Insurance Discount
Aside from the above tips, you have some other options to receive a discount, but also some things to be aware of when picking a clan. We’ve prepared a list below that covers both of these aspects.
- Some insurance companies will give you a discount if you don’t exceed 7500 miles per year.
- In the first 60 days of a new policy, the insurer has the right to terminate your contract for any reason. Driving recklessly during this period and filing a claim will either raise your premium or even terminate your policy if the damage is substantial enough. Keeping your record clean is an overall good idea though.
- Every state has regulations of its own for auto insurances, but the basics do not change. Research as much as you can to help you pick the right provider for you.
- Check that the current year’s quotes don’t exceed last years. If this doesn’t apply, start looking for better offers and bring them up with your agent. Usually, they’ll be able to give you a discount.
- If you can afford paying your whole premium when you renew the policy, it’s a good Idea. Monthly rates are usually more expensive.
- Discounts are also given to college graduates, non-smokers, specific age groups and to people with an impressive credit rating.
- If you’re a senior citizen, your rates will unfortunately probably be higher by default, as a lot of collisions during daylight hours involve senior citizens. If you already have satisfactory insurance, make sure to record absolutely everything in the case of an accident, so that you have substantial proof for your insurer. A dashcam would be a great idea too. Keep in mind that AARP can help you get discounts.
- Aftermarket modifications to your vehicle are generally not covered.
- If your car suffers a collision when someone else is driving it, the accident will most likely not be covered. If you lend out your car consistently, consider coverage for extra drivers, even if it will cost you more.