Sunday, 3 May 2020

14 Car Insurance Discounts You Need To Know

Are you sure you are getting all the discounts that you want on your insurance? Do you deserve more is there something you are missing, you just know they are charging you too much. If you want to see almost all of the discounts that you can possibly get, get ready because we are going to go through it. You can save up to 50% in your car insurance just through discounts alone. And these insurance companies want to give them to you, they are out there it is just a matter of them know that you qualify for them. Not all companies are really focused on giving you all the discounts it is not that they are trying to hide them from you, it is just they don't think of them at the time or they have done a lot of other things and they did not think of that one discount or those three discounts that you were supposed to get.

1. Discount: Married

If you are married that is a discount. being married is a lower risk than being single or divorced.

2. Discount: Good Student - GPA 3.0+

Being a student if you are under the age of 25 then you can get a discount for being a student. If you are under 25 then you may be qualified for a discount as well. That is typically called a good student discount. That means you have either a 3.0 or better which is a beyond average, you can prove that because they are going to require your last grade report. So make sure that you have the document to back that up.

3. Discount: Home Ownership

Just the fact that you are a homeowner I am not talking about the combination of the multi-policy discount. I am talking about homeownership, Just being a homeowner is a lower risk than being someone that rents.

4. Discount: Low Mileage / Commute

If you drive lower mileage on your car and when I say low mileage that is anything below 5,000 or below 5,000 miles is considered a low mileage driver. The less you drive the less risk there is on the road. So make sure that your insurance person knows hey, I drive this many miles. And then they will be able to determine how much that risk is. Not all companies use mileage as far as a rating factor, so you may get some that don't particularly care to know that part of it, which is fine I mean, it is okay to mention it to them so that at least they know about it.

5. Discount: Anti-Theft Passive & Vehicle Recovery

The security system in your car if you have an alarm system there is two versions, there is the standard alarm system I believe they call it passive, but that is if you have an alarm someone breaks in the car they open the door the alarm goes off and on, the sirens. The other one is Lojack, it is like a vehicle recovery system. If you have it it is something that you pay a service for. If somebody steals your car then they are able to track the vehicle and find it and then recover it. They are going to give you a good discount if you have a Lojack system. 

Your typical vehicles would be any GM that has Eon stats usually in the rearview mirror, or any vehicle usually a lot of BMWs have the Lojack system, not really a lot of Toyotas or Honda's unless you purchase it separately.

6. Discount: Safe Driver

If you have been driving and you don't have enough in the experience period which is typically three to five years depending on the state that you live in. If you have no accidents, no tickets, no violations, you are considered a safe driver. That would give you a large discount on insurance. 

7. Discount: Multi-Car

One of the largest discounts is called a multi-car discount. If you have two cars or more on a policy, then that will give you a very large discount. A lot of people think if they have three cars they will give them a bigger discount, it doesn't matter, once you add that second car, adding the third doesn't really make much of a difference.

If you live in a house with let's say you got mom and son or daughter whichever you prefer, so mom has her own policy, daughter has her policy, the best way to do it if you live in the same household is combine the two. Have mom the primary and daughter the secondary, so what that will do is it will take not only the multi-car and put them together, but it will also have mom's experience because she's likely driven a lot more or got a lot more driving history than a daughter. And because of the age depending on how old the daughter is if she's under 25 that is going to raise the risk. If she was on her own she'd instantly have a high risk, where her mom is going to be a lot lower of a risk.

The negative to that or the downfall is if either of you gets into an accident you are both liable for that claim because you are on the same insurance. They could not only sue daughter but they can also sue mom. If you do that make sure that you have the correct coverages. Personally, I would do it that way, mainly because I would make sure that I have enough coverage, that way if the daughter had an accident she's covered enough, but I would also have her pay her potion that she's raising my insurance that much within that parameters. Decide what you prefer in that situation it really depends on how much you want each other to pay. I would say the parent is only going to pay about 30% to 40% of the insurance and then the child would pay the rest of it just because of the risk that raises up. So talk with your agent if you have a question on that.

8. Discount: Credit / Consumer Report

It is not so much your credit score, it is the consumer report. What they are looking at is your ability to pay for things. If you have multiple bills that are passed to or in collections, that is going to hurt your consumer report. It is easier for somebody to just cut out is insurance when things are very tough for them because that is the first thing that people think about. Is if I can't afford car insurance I am just going to drive the way it is so no one is going to sue me for nothing. That is really the thought process of people but it is true. So they do consumer reports.

Even if it is bad don't stop quoting with a company because it is not that big of a rating factor. 

9. Discount: Early Shopper

If you purchase a policy seven days in advance. If I know that my insurance ends a month from now and I purchase it today or at least seven days before that month ends, a week in advance. they will give me up to 3% or more discount on my insurance. I didn't do anything different except for prepaying for the policy. 

10. Discount: Occupational

It is not to say that your occupational doesn't matter if you don't qualify for it, but you have to think about what the insurance company is thinking of, doctors, nurses, teachers, engineers, degrees. That type of occupation is going to get a discount.

11. Discount: Own Medical

If you have your own medical insurance. Medical insurance is a very large part of insurance. In some states like Michigan, New Jersy, New York and there are several other ones. They require that you carry medical. However, if you have your own medical insurance then they are going to allow you to do what is called the coordinate medical benefits. That means you can say, I got my own medical insurance put me as the primary so if I get injured my medical is going to take care of me first. And then if it runs out of money then the insurance is going to come in secondary.

So that way you are satisfying the state's requirement to have medical but you are also saying I am paying for it over here don't charge me for your medical on top of it. That will lower the rate as well. 
  • Having your own medical is also called coordinating medical benefits. 
  • Typically medical-Medicaid does not allow you to coordinate your medical through auto insurance unless you add a supplement to it. 

12. Discount: Defensive or Mature Driving Course

If you have taken a defensive or mature driving course. In order to take a mature driving course, you have to be 55 years or older. That is typically done through the DMW's website, it lasts for about three years and this is the same thing for the defensive driving course. It lasts for three years you get a certificate, keep that because they will need a copy of that for your insurance just to prove that discount. They will give you these discounts based on you saying them but don't try to trick them because they are going to want proof of stuff like that.

If you are an engineer they want a copy of your degree showing you an engineer because they are giving you a mug discount. If you are a good student they want proof that you have got good grades. If you are safe drivers they already know that because they are going to check your DMW record. You get this gist of it.

13. Discount: Pay In Full

How you pay makes a difference in the cost of the insurance. If you pay monthly, if you pay quarterly, if you pay every six months in some companies let you pay a year. Each step you go is typically going to give you a discount. You are going to get charged the most monthly especially for using a credit card. You are going to get charged sometimes a little bit less, sometimes it is the same as monthly if you do quarterly. But if you pay six months or more in advance, that is usually the best way to do it.

14. Discount: How you Pay, Credit Vs. Checking Account

How you pay also makes a difference not just how much you pay. If you are going to use a checking account, some companies actually give you a lower rate because you are using the routing and account number instead of an actual credit card. Because when they swipe those cards, they can get charge their 2% or whatever percent fee, and they are going to add that into the price of your insurance.

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