Insurance Discounts

July 27, 2017 · Posted in General Articles on Car Insurance 

We all want to save the most money possible on automobile insurance. With gasoline prices and repair costs becoming more expensive, the last thing that any of us wants is to be faced with an enormous bill for automobile insurance. So, what can the average driver do to reduce the cost of purchasing insurance? There are several methods of reducing this expense, but perhaps the best kept secret in the industry is the fact that automobile insurers offer discounts to their customers. These discounts reduce annual premium costs to policyholders just like you.

Car insurance companies will not often come right out and tell you about all these discounts. Year after year these companies earn millions in premiums when customers unknowingly pay more on their policy than actually necessary. Research is sometimes necessary to discover all the discounts to which a person is entitled. The following paragraphs will assist in your knowledge of some of these discounts. Always make sure, however, that particular discounts are available in you area and with your company.

The first discount you should ask about is the no claims or renewal discount. This discount, which is perhaps the most widely known discount, is offered to drivers with a clean insurance claims record. So, over time, and up to a delineated amount, your percentage discount will increase, so long as your insurer has not paid any claims on your behalf. Another important discount to ask about is the anti theft device discount. Auto theft in this country causes the insurance companies to pay out hundreds of millions of dollars a year for claims. Any device or mechanism that reduces the probability that your automobile will be stolen may result in a discount to you because the risk of a theft claim is reduced.

Another discount is the advanced driver?s discount. The idea behind this discount is that the more experienced you are behind the wheel the less likely it is that you will be in an accident. Even young people can take advantage of this discount through the advanced driver training course.

Often, the premium discounts associated with advanced driver training and anti theft devices are so significant that the cost for obtaining the training or devices is covered, sometimes several times over. Yet another discount that you should inquire about is the multi policy discount. The insurance companies are for-profit companies and want as much of your business as they can obtain. For this reason, many will offer a discount if you obtain your automobile and homeowners? insurance through the same carrier.

Similar to the above discount, many companies will have a multiple vehicle discount. If you are a multi-vehicle family and insure all the automobiles with the same company, you are eligible for this discount. Say you do not use one of these vehicles often; ask about the low mileage discount. Those who drive 5000 miles or less a year may qualify for this discount as well.

These are just a few of the discounts offered. When considering discounts, remember that the insurers will typically reward you (in the form of reduced premiums) for anything that reduces their likelihood of a claim or that increases the amount of business they do. However, because discounts are not always offered up front, it is important to be proactive and ask for any that you believe you might be eligible to receive.

Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance.

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