Reducing Your Rates Through Discounts

By Author: Norris Rios
Total Articles: 572
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Discounts are a good way to stimulate the customer and increase loyalty in those who are already buying from you. We see discounts in nearly all domains where sales and services are present. And insurance is not an exception despite the fact that most car owners tend to think otherwise. Most insurance companies have special they use to appreciate low risk customers and attract new ones to their pools. Sure, most car owners have probably never heard of any discounts their current providers carry, simply because they didn't bother to ask around and look for any discounts they could opt for. And insurers don't bother to advertise their discount neither, since they want it to be exclusive rather than massive. So what discounts you can actually get from your insurer if you are persistent?

All companies have different sets of discounts they can offer to specific groups of drivers and the amount of each discount also varies from company to company. However, the general set tends to be the same across most companies so you might want to look out for the following types of discounts to save some money with:

Good driver ...
... discount

The name of this discount is pretty self-explicatory. If you have a clean driving record and don't have any traffic violations or accidents for a period of time, your insurer will offer you a discount because of your low-risk profile. The main catch is that in most cases you will have to have a history with the current provider in order to opt for this discount. The period of time varies, but it's usually 2-3 years with most providers. So it's not a discount that you may opt for while getting your auto insurance quotes.

Good student discount

This can be a very effective way to cut rates for teen drivers who are "lucky" to have the highest rates among all age groups. Teens are regarded as high risk drivers because they don't have much driving experience and usually tend to be more aggressive on the road. However, if you have an average of B and higher you may get a special discount for being a good student. This will require some paperwork as you will have to check in with your average on a regular basis. But you can get this discount even when considering auto insurance quotes.

Low mileage discount

This discount is quite beneficial for those who don't use their cars too often. The limit of yearly mileage allowing the customer to opt for this discount varies from company to another, still the average value is 10,000 miles per year. If you're driving less than this distance then you should definitely ask your insurance provider about cutting your rates. It's very likely that you'll manage to get lower premiums as a result.

Of course, there are many other types of discounts you can opt for in order to cut your premiums. Make sure to ask around and get a list of all the discounts your current insurance provider can offer. And if you're looking for a new policy, also ask if there are any discounts offered by your potential provider.