When you first apply for insurance, you are allocated to a general group representing your age, gender, occupation, type of neighborhood where you live, claims record, and so on.
In other words, the criteria are general. The rate is then personalized by deducting the discounts to which you are entitled. In all cases, you should check whether the auto insurance quotes have properly applied all the discounts. Many companies work on the basis that, if you do not ask for the discounts, you do not get them.
1. Bundling discounts
All insurers offer discounts if you offer to insure both your home and vehicles. There are further discounts if you have more than one vehicle.
2. Pay for the policy with one lump sum
Many insurers offer you convenience, i.e. to pay for your policy by monthly deductions from your bank account or credit card. Many also accept electronic payment systems. However, they all impose administrative charges. There’s always a discount for paying the premium as a lump sum. As an aside, note the advantage of buying twelve months of cover. This locks in your cheap auto insurance rate for a year as against a rate that can change every six months.
3. Look for group discounts
All insurers offer cheap auto insurance rates if you are a member of a preferred group. This can be a professional or trade association, a university alumni association, credit union or just holding a particular credit card. Ask your insurer for a list of the groups with an affiliation discount.
4. Fit anti-theft or safety features
If you are buying new, always pick the makes and models which have all the standard anti-theft and safety features fitted as standard. If you are buying secondhand, you can earn discounts if you fit your own devices to the vehicle. Get a list of the approved devices from your insurer and work out whether the cost of each device is economic.
5. Go on an approved defensive driving course
Both as a teen and an older driver, there are discounts if you learn or upgrade your driving skills. Get a list of the courses approved by the different insurers and see what is involved. Some insurers offer reduced discounts for online courses.
6. Watch your credit score
You have a right to free copies of your credit history. If you find mistakes, correct them immediately. People with the best credit scores receive reduced auto insurance quotes.
7. As a student maintain a good GPA
So long as you remain in full-time education, you earn a discount if you have a GPA of at least 3.0. Insurers have fund a statistical link between people with good grades and people with low accident rates.
8. Consider increasing your deductible
If you can afford to pay the first slice of every claim you make out of your own pocket, you earn a discount by accepting a higher deductible.