InsuranceLecturer — What are the conditions for getting a discount on a car insurance? Here are some questions and answers that you need to know about cheap car insurance and discounts.
1. What discounts are available?
The calculation of insurance rates begins with who you are as a driver and the make and model you drive. This is the starting point but the cheap car insurance rate comes when the discounts are applied.
Here’s a guide to the basic range of discounts.
To ensure you have all the relevant reductions applied to your quote, go through the initial questionnaire carefully. If you are uncertain whether the resulting quote has correctly applied all the discounts, send an email or pick up the telephone and ask. The usual rule is that if you don’t ask for the discounts, you don’t get them.
2. Are safe drivers rewarded?
All insurance companies prefer their drivers to pay their premiums and not try to claim any of that money back. Unfortunately, the majority of drivers are reluctant to change their insurers so the companies do not need to offer discounts to persuade you to renew.
Only a few companies specifically reward good driving or loyalty. This does not mean safe driving is not reflected in the calculation of the general rate or that the quality of the driving can be measured directly with the pay-as-you-drive technology to produce cheap car insurance.
Are safe vehicles rewarded?
Most makes and models come with safety features as standard so, when the basic rate is calculated, it will reflect the presence of antilock brakes and other smart systems.
But if some safety features are discretionary, you will earn discounts if you have then fitted, e.g. seat belts, air bags, etc. Check the user manual for your model to find out which features are fitted as standard. If you have more, claim your cheap car insurance.
3. Are antitheft features rewarded?
Some makes and models are very popular with car thieves, so you will earn discounts if you fit devices to make your vehicle more secure. Before you fit ignition or fuel cut-off switches, GPS tracking systems, etc. check with your insurer to find out how much you will save.
That way you can decide whether the cost of buying and fitting the devices is economical.
4. What bundling discounts are available?
All insurers offer discounts if you give more business. This involves multiple vehicles and drivers, or buying both a homeowners and car insurance policy.
4. Are good students rewarded?
Most insurers offer a discount to full-time students under the age of 25 who maintain a GPA of at least 3.0. However, it’s advisable to check with insurers before confirming the policy. Most require proof of your enrollment on a course and the average.
5. Are older drivers given discounts?
This varies from state to state. Before you buy a policy, check what the qualifying age is and whether it’s necessary to go through a defensive driving course or meet any other conditions.
6. Are there low mileage discounts?
This is built into the pay-as-you-drive policies because the number of miles you drive is automatically monitored. Saving with some insurers is up to 40%. i.e. really cheap car insurance.
