What Kind of Auto Insurance Discount Available?
Ed Sneneh, Chicago auto insurance Agent
Auto insurance companies offer various discounts and incentive to encourage clients to purchase insurance from these companies. When shopping for auto insurance look at the following checklist before you buy, and include any discounts for which you may qualify in your worksheet. These discounts are normally related to one or two of the rates that constitute the full price of your auto insurance policy.
For example, installing an alarm or antitheft device will get you a discount on the comprehensive portion of your policy only. This means that the discount will apply to that premium of that portion of your policy. Anti theft device discount will not lower the premium of your liability coverage.
Some companies offer certain of discounts that are not offered by others. Level or percentage of discounts are not the same either. For that reason clients need to be sure to ask if or not the company you get a quote from offers the discounts for which you can be entitled for:
- Good driver discounts. Many standard insurance companies give a discount to operators with driving records that are accident- and/or violation free.
- Mature driver discount. If you are 50 or 65 years old, certain companies will reduce your premium by 10 to 20 percent, depending on how many miles a year you drive. There is also a discount for drivers 65 and older. It should be noted that age starts to play adverse effect past age 71 years.
- Car pool operators. You and your fellow carpool drivers might be entitled to some discounts, 10% to 20 percent from some insurance companies. Non standard insurance companies are not as generous when it comes to this discount.
- Multi car households, or Multi Car Discount. You may qualify for some discount if you or your family owns more than one car, listing these cars all on the same auto insurance policy might be good for a 5 to 10% percent discount.
- Multi policy discounts (Multi Account Discounts). Certain insurance companies offer a discount when you or your family insure your a boat, or a home (condo, or apartment) with them as well as your car, where allowed by law.
- Antitheft device (LoJack/Alarm Discount). If you make it harder for somebody to steal your car by installing an ignition cutoff system, alarm, or a hood and wheel-locking device, you may be entitled to a discount on the comprehensive premium of your policy (ie not liability premium, towing premium, rental premium, or collision premiums).
- Safety Discount, seat belts and air bags. Certain insurance companies will slice the premium for your medical coverages by as much as 20 or even 30 percent for automatic seat belts or air bags. Remember, the reduction applies to medical coverage only.
- Nonsmoking operators discount. Very few companies offer this discount sometimes. The discount will qualify for lower rates for liability, no-fault (medical benefits coverage) and collision insurance (note that comprehensive is not here!)
- Many standard companies are offering discounts for completing high school or senior citizen driver education courses.
- Away Student Discount. When a teen is included in the policy, but the teen attends school 100 miles or more away from the family and does not have an auto, a discount may qualify.