Auto Insurance Discounts

Drivers need to be vigilant when searching for auto insurance discounts, because affordable auto insurance is not only about the rates auto insurance companies are charging.

Auto insurance companies tend to offer great rates because they are eager to obtain new business. The fact is, these rates aren’t set in stone and auto insurance companies will look for reasons in the future to raise their clients’ rates.

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The Cause of the Ever-Increasing Auto Insurance Rate

When auto insurance policies come up for renewal in either six months or a year, the auto insurance companies will look over their clients’ records. The point is to discover anything that could give them a reason to raise these people’s rates. Some of these reasons may be:

1. Several points were added to their clients’ driving records,
2. Their credit scores were lowered,
3. They moved to a high risk driving area,
4. They changed jobs and are now driving many more miles than they used to,
5. They have caused an accident.

The Solution to Higher Auto Insurance Rates

After auto insurance customers have been notified that their auto insurance rates will be rising, they can always consult this comparison website and see what rates they will be quoted. Among this large list of quotes will be some surprisingly low ones, and these auto insurance customers can decline to renew their coverage with one company and purchase it from another if they so desire.

Auto Insurance Customers that Would Benefit the Most

Some states are known for their high auto insurance rates. The highest average auto insurance rates will be found in New Jersey where people are paying $2,329.16 per year. Some cities in New Jersey have even higher rates; in Newark, the average rate is practically twice the national average at $3,126.96. These are huge rates.

If people in New Jersey are also high risk clients, their auto insurance companies may have quoted them rates that were even higher than the averages. People in this situation are warranted in seeking auto insurance quotes from a comparison website. They need to take every opportunity to find the lowest rates possible.

The Search for Auto Insurance Discounts

As was mentioned above, the story doesn’t end with low auto insurance quotes. Because rates are generally so high in some states, drivers are going to have to be proactive in receiving low auto insurance rates. This means that they will need to be aware of the many auto insurance discounts that they can receive from each auto insurance company.

Not everyone can qualify for every auto insurance discount but there are so many options, it wouldn’t be difficult for people to find at least one.

1. Safe Driver Discount

Some people have very good driving records. They haven’t caused any accidents or even been a part of any collisions that weren’t their fault. They have never received a speeding ticket. They have never run through a red light or a stop sign. These people can expect to be given a discount equal to 45 percent or more from some insurance companies.

2. Accident-Free Discount

Not everyone can receive the safe driver discount but if they fit one of the criteria, being accident-free, some insurance companies reduce their rates by 10 percent. Different companies will have different qualifications, but, generally, these clients will need to be accident-free for the five years that they have been licensed drivers.

3. Early Sign Discount

It’s customary for people to begin looking for new auto insurance coverage about a month before their policies expire. If they find something better, they will wait until their current coverage is about to expire before they purchase a new policy. Some insurance companies will reward these clients for signing early, that is before their old coverage expires, by giving them a 10 percent discount.

4. Passive Restraint Discount

If a vehicle has automatic seat belts and air bags, owners of these vehicles qualify for the passive restraint discount. These types of features don’t give the passengers or the driver a choice as to whether or not they will be used, so auto insurance companies will take off 30 percent of the rates for these customers. Seat belts and air bags reduce the severity of injuries and, therefore, fewer claims can be filed.

5. Anti-Lock Brake Discount

Anything that makes a vehicle less likely to be involved in a highly serious accident will qualify the car’s owner for auto insurance discounts such as having anti-lock brakes. These brakes help the driver keep control of the vehicle at times that it may be slipping along a wet road. These brakes increase the possibility that the driver will be able to regain control of the car before it hits another car or crashes into some other object.

Owners of vehicles with anti-lock brakes may be able to find an auto insurance company to give them a 10 percent discount for their anti-lock brake systems.

6. Membership Discount

Some insurance companies offer a 10 percent discount when a customer informs them that they are members of certain organizations.

7. Multi-Car Discount

Drivers may separate their auto insurance policies because one may be a higher risk than the other who drives the prices up. It’s actually the opposite action that will work in their favor. If they were to combine their vehicles under one policy, they will be able to receive a 20 percent discount on their auto insurance.

8. Multi-Policy Discount

Insurance companies aren’t always just for auto insurance; they may also sell several other policies such as: