Paying for automobile coverage is not something most consumers look forward to, but if an individual intends on operating a motor vehicle, then the chances are that this is a cost that must be incurred. Although this may be the case, there are several ways that a motorist can help themselves by ensuring that the cheapest car insurance rate is paid for the desired policy, and taking advantage of any discounts where available is one of the most effective ways to cut premiums.
Consumers may want to become familiar with the numerous ways that insurers may discount the price of policies and be sure not to miss out on any that can drop the cost of coverage. For the most part, motorists are aware of common auto insurance discounts that are given by carriers such as the good driver and good student discount, each of which can reduce a premium by up to 20%, and can be quite substantial when balancing a budget. But there are many others that a driver may not be receiving, and making sure that these savings are applied can save a significant amount of money. When shopping around for automobile policies, consumers should address any discount that can be used.
Aside from being rewarded with a rate reduction for being good drivers or students, there are many other available savings offered that consumers should definitely take advantage of. A common area where auto insurance discounts are applied is the vehicle to be insured. Each vehicle has specific details regarding safety and anti-theft features that can entitle the owner to a lower premium. Cars have become safer in recent years and as a result rates for certain types of coverage can be reduced. For example, if a vehicle is equipped with airbags then the cost of Personal Injury Protection (PIP) may be lower than an automobile without this feature. This is because if an accident occurs in such a vehicle, the airbag can reduce the severity of the injuries. Safety rankings, theft rate and accident frequency of vehicles can also have an impact on the price of the type of coverage that can be affected.
Many of the discounts offered are automatically applied by insurers when a motorist purchases a policy, but there are some lesser known ways to reduce rates that may need to be brought to the attention of carriers in order to receive savings. Many companies will offer a reduced rate to policyholders that have completed a driver’s education course; this discount will not be applied unless addressed since the insurer would be unaware that such a class was taken. The same may apply for discounts for certain types of employment, not being a smoker, belonging to an auto club among others. Consumers can refer to resource such as the one provided by the Missouri Department of Insurance, Financial Institutions & Professional Registration which details available discounts and a range of percentages that companies may discount off of premiums for each.
Source: http://www.onlineautoinsurance.com/discounts/
