Everyone loves to save money and purchasing things using discounts is one of the best ways to do that.
You can save money on your car insurance by taking advantage of all the discounts available to you. Here are the top six most car insurance providers offer. Check into them when youâ€™re shopping for coverage online or purchasing it through an agent.
Consolidating your auto and home coverage under a single policy is probably the single biggest discount available to car owners. The reason insurance is cheaper when you get it from a single provider is because it eliminates duplicative coverage. (You could be paying for theft coverage in both a homeowner and car insurance policy.) It also reduces back office work. (Two policies mean double the work.)
The discount for bundling can be as high as 20 percent.
If youâ€™re a homeowner, you owe it to yourself to bundle your coverage. Not only will it lower your insurance premiums, it also makes managing and maintaining your policies simpler.
Do you have more than one car? Perhaps you own a motorcycle, all-terrain vehicle, mobile home or boat, as well. Consolidating the coverage for all your vehicles with a single provider will save you money. Your premium will go up for every vehicle you add to your policy. However, the incremental increase will be less when compared with insuring them under different policies or providers.
Your credit score affects how much you pay for car insurance. Insurance companies have found that people with lower credit scores are more likely to make claims on their policies. People with low scores could pay hundreds of dollars a year more for their insurance than people with higher ones.
The good news is that your credit score is something you can take control of. Take steps to improve your score by paying your bills on time and reducing debt. Regularly monitor your credit rating online looking for improvement and ensuring that errors arenâ€™t made that unfairly lower it.
If you havenâ€™t had an accident or received a ticket in the last three to five years, you could earn a significant discount on your insurance. The reverse is also true: bad drivers with multiple accidents or incidents on their driving record will likely be penalized for it.
If your insurance covers all the members of your family, the good driver discount could be applied to all of them if they earn it. Depending on the number of people covered by a policy, this discount could really add up.
Insuring young people is expensive. Insurance companies penalize them because they lack driving experience.
One way to combat this is to take advantage of the good student discount. Most insurance companies require college students to maintain a 12 hour course load and a grade point average of 3.0 or higher to qualify.
Why do insurance companies offer this discount? They find that students who are busy studying are less likely to get into trouble behind the wheel.
Many people find it surprising that insurance companies offer a homeowner discount on car insurance, even if a home is insured with another company. Homeowners earn this benefit because insurance companies view them as more stable than people who rent apartments or homes.
Tip: If youâ€™re a homeowner, you can double dip by combining this discount with the bundling discount. It can lead to BIG savings.