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Choosing A Better Auto Insurance Plan

Little-Known Auto Insurance Discounts

14 February 2023

Patrick Pearson

Insurance companies offer dozens of discounts for their clients. The discounts can help you lower your auto insurance rates and make insurance more affordable. However, few people know about all the discounts available. Below are some little-known discounts.

Early Quote and Purchase

You may qualify for an early quote discount if you switch insurance companies. Some companies offer you a discount if you seek quotes and purchase your next policy before the current one expires. The company determines how early you must purchase your next policy to get the discount.

Full or Automatic Payments

Some insurance companies reward you for paying your annual premiums as a lump sum or setting up an automatic payment system. The reward makes sense for several reasons. For example, paying in full saves the company the resources they would otherwise use to process multiple payments. Secondly, paying in full eliminates the risk of defaulting on your payments.

New Car

You may also get a discount if your car is relatively new. Here are some reasons for new car discounts:

• A new car still has its security systems intact, reducing theft risk.
• A new car is unlikely to have faults that can lead to an accident.
• New cars have accident avoidance and security systems that many older models lack.

The insurance company determines how new your car must be for you to enjoy the discount.

Continuous Coverage

Some insurance carriers will reward you with a discount if you don't have coverage gaps in your insurance history. You may qualify for the discount even if you have switched carriers in the past. The main thing is that you have never been without insurance coverage for the specified period.

Insurance companies are wary of coverage gaps for several reasons. For example, a coverage gap might mean that you once lacked funds to pay your insurance, and you might lack again. A coverage gap might also mean financial irresponsibility. Laxly, a coverage gap increases the risk of driving without insurance.

Club and Societies

Different insurance companies offer discounts for members of different clubs and societies. For example, you may snag a discount for being a member of some nonprofits, Mensa (a society for people with high IQ), or military veteran societies. Ask your club, insurance agent, or company for such discounts.

Hopefully, you will get the discounts you qualify for and enjoy low insurance rates. However, consider other factors other than discounts while shopping for insurance. An insurance company's stability, customer service, and coverage also matter. For more information, contact an independent auto agent near you.

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