Car Insurance Discounts

8/27/2019

Car insurance can be expensive, but you can reduce your premium by understanding how it works and how to find the best discounts.

With so many insurance companies to choose from, policyholders benefit from the fierce competition between insurers over attracting and retaining new clients.

You don’t have to wait until your policy is up for renewal to ask about discounts. If you discover you can get better rates and discounts, move your policy to another auto insurance carrier right away.

How Car Insurance Rates Work

Your car insurance rates take into consideration many factors. Companies look at how much coverage you want to buy, then calculate how much to charge you based on the likelihood it will have to pay that amount. When you compare quotes, you are supplying the information the carriers need to do the math. Each question represents a way to gauge potential risk.

Are your insurance rates set by law? Yes and no. Car insurance rates are regulated by states, but if companies observe state laws, they are free to charge what they wish.

How is my car insurance rate set? You are sorted first into an individualized group – say, married drivers in your zip code over 25. Then the company calls up the pricing for that group. It adjusts for any negative factors, such as traffic violations or a pattern of claims. It considers the value of the car are you are insuring and the frequency of claims. Finally, any discounts you qualify for are subtracted from the price, and your quote is returned.

What affects the auto insurance rates quotes I receive?

Who you are
Your record
What and how you drive
How much coverage you want

Which factors affect car insurance the most?

Your zip code
Your age
Your driving record
Your credit
Your previous insurance coverage

Types of Insurance discounts

Being a great driver, operating a vehicle with the best safety features, and having a child with impressive grades can all help you save money. Note that car insurance discounts may vary by state, vehicle, driving record, credit history, and other factors.

Auto insurance discount savings

Finally, make sure you get what you need. It’s easy to focus on the bottom line and go for the lowest premium. That’s not always in your best interests. Make sure you understand what coverage you have and what your potential out of pocket expenses will be in the event of a loss. Also, make sure you carry good liability coverage, not the minimum state requirement. Many people are under-insured by not understanding that if you cause bodily injury or property damage to others that you are responsible for the damages, even if they exceed your insurance policy limits.

It doesn’t matter how good a “deal” is if you get insufficient service. We can help you do the homework to find the best insurance that provides the coverage you need at the right price.

Have a safe and happy Labor Day weekend.

15 Comments

Tex Hooper link

5/24/2022 06:36:55 pm

I didn't know that the zip codes affect your premiums. I need to get a insurance policy that has more liability coverage. I'll have to consider getting an agent to help me know the parameters of the policy.

lihabi link

6/27/2022 10:42:12 pm

thanks for the information, very inspiring

Mia Evans link

10/15/2022 02:57:42 am

Thanks for helping me understand that most auto insurance companies will calculate the charges by checking the coverage we wanted and the likelihood we might need to pay for it. I will share this information with my husband because we will be getting our first family car this year. And we definitely need it covered to save us from expenses in the future when there is a need for repair or other issues.

Thomas Clarence link

10/17/2022 05:14:30 pm

Thank you for helping me to understand that car insurance rates are regulated by the state you live in. My wife and I recently moved to a new state and we need to purchase car insurance. We will have to find an insurance agent that can help us understand how the rates work in the state we are now living in.

Millie Hue link

10/21/2022 01:50:54 am

Thanks for pointing out that there would be state laws that would have to be observed by an auto insurance company. I guess that means that the providers would be legal and legitimate if they can assure that they follow those laws. This can help me find a coverage that I can benefit from and trust now that I will be buying my own vehicle this year.

Victoria Addington link

10/26/2022 03:01:05 am

It's great that you discussed that car insurance rates are controlled by states. My friend wants to protect himself during car accidents. I should advise him to look for an auto insurance coverage that fits his lifestyle.

Iris Smith link

12/6/2022 05:09:32 am

Thank you for mentioning that vehicle insurance prices are regulated by states, but corporations are allowed to charge whatever they want as long as they follow state rules. My daughter is purchasing her first car. I'll tell her to confirm the state-regulated car insurance prices.

John Carston link

12/9/2022 08:02:54 pm

I found it interesting when you said that the policies you chose would be calculated for estimates. My friend told me last week that he was planning to have auto insurance that could provide the most reasonable insurance rates for the protection coverage for his car. He asked if I had any idea what would be the best option to consider. Thanks to this helpful article, I'll tell him that it will be much better if he consults a trusted auto insurance agency as they can provide more information about the best plan.

Joony Allexa link

1/4/2023 10:47:51 pm

There are many things to consider when one is looking for an car insurance policy. Rates usually vary by state, so it's important to take that into consideration. Thanks for giving me some great tips on what to look for when choosing an car insurance policy!

Steve Smith link

2/9/2023 11:40:05 am

I like how you mentioned that you could improve your safety features if you are a driver that prioritizes safety. My brother informed me the other day that he was planning to have auto insurance that could provide the most affordable insurance rates for the protection cover for his car. He asked if I had thoughts on the best planning option. Thanks to this valuable insurance article, I'll tell him it will be much better if he consults a trusted auto insurance agent as they can provide details about the best plan.

Eli Richardson link

2/22/2023 06:17:25 pm

My younger brother wants to buy a car next month, but he wants to get insurance before choosing one. That's why I believe he'd be glad to read your insight about insurance discounts and how being a good driver could reduce your fees, so I'll email this to my brother right now. I appreciate your information about checking your state's car insurance discounts since each one is different.

Zachary Tomlinson link

8/2/2023 08:48:57 am

Thanks for suggesting consulting different car insurance companies so you'd have different options for your vehicle! I have a friend that has been thinking about investing in a used Japanese-made vehicle this year. I believe he should invest in car insurance so he won't have to worry about anything while driving!

Car insurance Massachusetts link

8/31/2023 09:28:56 am

This informative article delves into the realm of car insurance discounts, shedding light on how policyholders can save on their premiums. It emphasizes the competitive nature of the insurance industry and encourages readers to explore discounts even before policy renewal. The piece explains the factors that influence car insurance rates and highlights key elements like individualized groups, negative factors, vehicle value, and applicable discounts. It succinctly touches upon crucial factors like location, age, driving record, credit, and previous coverage that impact insurance rates.

JIMENEZ MAZZITELLI MORDES link

9/9/2024 09:09:54 am

Hey, just a quick legal note on this car insurance article. Remember, while discounts are great, adequate coverage is crucial. The minimum state requirement might not be enough to protect you financially if you're in an accident. It's always wise to discuss your coverage options with an insurance professional or attorney to ensure you're adequately protected.

Monica link

11/18/2024 06:22:54 pm

Great blog! The post on Car Insurance Discounts is incredibly insightful and packed with useful information. It clearly explains the various discounts available and how to take advantage of them, making it a must-read for anyone looking to save on their premiums. Well done!