The question of whether auto insurance buyers with a clean record are entitled to a discount is one which a number of people may be wondering about. A number of auto insurance providers offer discounts to their customers in various circumstances, but the decision to offer this type of price break and the amount of the discount varies, depending on the provider.
Auto Insurance Discounts Overview
Auto insurance companies are competing with each other for business. Offering discounts to buyers can be an effective strategy to attract new customers and to retain current ones.
Examples of Auto Insurance Discounts
A customer looking for auto insurance coverage can qualify for more than one discount in some circumstances. Someone who is looking for an insurance product should make a point of asking for a list of available discounts to make sure that he or she is getting the best possible deal on coverage.
- Good Driver/Claims Free Discount
Auto insurance companies offer their best pricing to policyholders who have clean driving records. A person who has been involved in an accident is more likely to repeat this event and presents a higher level of risk to the insurance provider of having to pay out on future claims. As a result, rates are higher for customers who fit this profile.
- Multiple Vehicle/Multiple Policy Discount
A number of auto insurance companies offer discounts in these circumstances. Consumers who want to save on their coverage costs can consider buying their home and auto coverage from the same company. They would likely be able to get a discount on both policies. Insuring all vehicles from the same household on the same policy is another effective way to save on coverage costs.
- Low Annual Mileage Discount
Drivers who make a point of leaving their car at home and using public transit through the week can save on their insurance costs as well as gas and maintenance expenses. Customers who spend less time on the road present a lower risk for being involved in an accident, and companies can offer them better rates for their coverage.
- Good Student Discount
Teens and young adults who are able to maintain a “B” average or higher in their studies can get a discount on their auto insurance coverage. Insurance companies consider that a person who is diligent in his or her studies will be responsible when operating a vehicle.
- Safety/Antitheft Device Discount
Some insurance providers offer discounts to policyholders who are operating a vehicle equipped with safety devices like antilock brakes and automatic seat belts. A car which has an antitheft device is less expensive to insure, since the risk to the insurance company of paying out for a loss is lower.
- Online Discount
When customers buy a policy over the Internet, the insurance provider has lower administrative costs. The company also saves money since it does not have to pay out a commission on the sale, and it can offer better rates for coverage as a result.