Free course on saving your money with Auto Insurance Discounts All you need to know about all types of Auto Insurance Discounts

Auto Insurance Discounts

  • Welcome, dear followers, our talk today about The 8 Most Common Auto Insurance Discounts.
we're gonna dig into the eight most common discounts.
Now insurance policies are based on Auto Insurance Discounts as I'm about to show you so understanding what they are which ones you have, which ones maybe you don't have
is the key to really understanding
if you're paying the right amount for your insurance policy or you're paying too much you're gonna have a real sense of you know, what are the Auto Insurance Discounts that you have,
and what might you not have, and need to get.

So those eight discounts are as follows.
Number one is safe driving.
Number two is accident-free.
Number three is credit.
Number four is the multi-s.
Number five is age and gender.
Number six paid in full.
Seven is loyalty and intro.
And finally, association or job.

These are the eight common Auto Insurance Discounts and I'm gonna dig a little deeper into each of those
in just a second.

Alright, let's talk about a rookie mistake.
Well, the rookie mistake is not understanding your Auto Insurance Discounts, and making sure your company has applied them. Insurance companies aren't motivated to necessarily apply
all the Auto Insurance Discounts.
Good insurance agents absolutely do but you know, sometimes things get left off or just forgotten and so to be able to look and make sure
you have each one of these or
know why you don't have them is a key. So rookie mistake is just not paying attention.

Let me give you a quick example of how Auto Insurance Discounts work in auto insurance.
An auto insurance quote always starts really really high, so the highest price you could possibly have is where the quote starts.
In this example, let's say it's $1000 a year Then a bunch of Auto Insurance Discounts get applied.
Those discounts can bring your premium down dramatically, sometimes 30, 40, 50%, those Auto Insurance Discounts are being applied and bringing your premium down to more what you would expect it to be.

So in this example, 30% came down, $300 a year less,
and so what you're actually paying for your insurance is $700.
So the Auto Insurance Discount saved you $300 a year in this example and that's pretty common. 30 to 40% in Auto Insurance Discounts, depending on how many of them you get, is a very common change in premium.
It's just important to remember
that your insurance policy actually starts really high
and then the Auto Insurance Discounts bring the price down.
Okay, let's dig in to them.

Number one is safe driving. Driving safely

obviously has tons of advantages.
One is the price of your insurance.
When you get a ticket, it's noted on your insurance policy and that can often result in higher premiums.
It can be connected with accidents or other things to increase your premiums or to remove Auto Insurance Discounts for safe driving.
So that's number one, safe driving's good anyway but it also affects your insurance premium. 

Number two is accident free

so no accidents equals cheaper insurance.
Pretty simple, right?
How much depends on the company. Some companies "forgive" a single accident, although they do charge you in your premium, for that accident forgiveness, so it's not exactly free,
but most will hit you pretty hard
especially if there is more than one accident. If you get in two accidents, three accidents in the last three to five years, your insurance premium is going to be extremely high because those accidents are piling up and insurance companies are going to
take away discounts for that.
So that's basically accident-free.

Number three, (credit)

this one's, you know, not paid attention to very often but a huge factor in your insurance premium,
is credit. If you have low credit,
then you're not getting any Auto Insurance Discount associated with good credit. If you have good credit, then you're getting those Auto Insurance Discount
and those discounts can be significant, so your credit can be a major factor in your auto insurance premium, and alright.

Number four is the multi-s,

and there are two of them.
The first one is a multi-policy discount and it's, so this is a sometimes it's called bundling, you'll see commercials about this.
You get a Auto Insurance Discount for putting together
your home and auto, or your renter's and Auto Insurance 
So if you have auto insurance and you live in a house, whether that's rented or home, you need to make sure that your auto and home
are bundled together, unless there's some, you know, extenuating circumstance. Putting those together is going to give you a Auto Insurance Discount on both auto and home, especially if you're a homeowner. It's a large Auto Insurance Discount on your homeowner's premium when you put your auto together with your home.

So that's the multi-policy discount. And then a lesser known one is the multi-car Auto Insurance Discount. If you have one car, you don't get this Auto Insurance Discount. When there are two cars on the policy, most companies will have a Auto Insurance Discount
so you actually get a discount for having multiple cars in your household. So that's the multi-s,
the multi-policy discount and the multi-car discount. Alright, let's talk about age and gender, 

number five.Well, age, 

you know, the most significant age
one is if you're a young driver.
Young drivers see significantly higher insurance premiums.
That tends to go down after five years of driving experience and then again at age 25. Insurance companies look at who gets in accidents. They know where accidents come from and they know young drivers have a much higher likelihood of getting into accidents
and so insurance discounts are based on that. If you're older, you've got a lower likelihood of getting into an accident, so we're gonna give you a Auto Insurance Discount for that. So age is a factor and gender is a factor as well.

Women generally pay less for Auto Insurance Discount because ladies have fewer accidents than guys.
Again, based on statistics. Insurance companies are looking at actual payouts
on insurance claims and deciding, okay, we noticed that 60% of claims are men and 40% of claims are women so we're gonna provide a Auto Insurance Discount for women and not give that Auto Insurance Discount to men because we see that difference, so,
that is the gender Auto Insurance Discount, and the age and gender Auto Insurance Discount.

Number six, paid in full,

and that's pretty straightforward.
If you want to pay your policy in full, not spread it out monthly or quarterly or any of those kinds of things, you're gonna get a Auto Insurance Discount for that.
You know the most expensive one
is paying monthly by mail so if you're paying monthly right now,
one way to save a little bit of money
is set up automatic payment with your insurance company.
They should give you some kind of Auto Insurance Discount for that, and that'll, you know, help out your pocketbook. But paying in full,
if you want to get the Auto Insurance Discount for that,
then that's what you need to do.

Number seven, loyalty and introductory. 

This is interesting cuz it's two very different approaches, to, you know, these Auto Insurance Discount. Two opposite approaches here. Some companies offer introductory Auto Insurance Discount that fall off in future years. So they're gonna give you a Auto Insurance Discount
cuz they want that number to look low when you're deciding what insurance company to go with,
and they're hoping you'll go with them. To me, that's kinda crummy and a little sleazy, like, you know, if you're going to have a Auto Insurance Discount just for bringing somebody on board
and then take that Auto Insurance Discount away the next year,
like, you just shouldn't have the Auto Insurance Discount
in my opinion.

But lots and lots of companies do that, especially the big ones. They'll give you a number the first year and then that Auto Insurance Discount will drop off
in next year's. So that is introductory Auto Insurance Discount. Others offer a Auto Insurance Discount for each year you stick around so this is a loyalty Auto Insurance Discount. You know these are people who, err companies, that are saying, well we want folks to stick around. We're gonna reward them for doing so
by offering, you know, usually it's like 2% per year up to five to ten years or something like that.

So you're getting a Auto Insurance Discount for every year you stick around. To me, it makes a lot more sense to do it that way, you're rewarding people for being loyal,
and that's awesome. Interestingly, some companies also provide a Auto Insurance Discount for how long you were with your previous insurance company,
so they'll look when they're offering a quote to you, and say, well, so-and-so was there at the old company for six, seven years.
Looks like they're pretty loyal.
We're gonna give them a Auto Insurance Discount for that
and kinda continue that cuz we can see their loyalty. So loyalty and introductory is number seven,

and finally number eight,
associations and employment.

Companies offer a variety of Auto Insurance Discount for what you do for a living and associations you're a part of. So some examples.
Being a teacher, it's a huge one
and a lot of insurance companies have significant Auto Insurance Discount up to 10% even for being a teacher, so if you're a teacher, that's definitely one to share
with your insurance agent.
See if there's a Auto Insurance Discount for that. Others are, you know, AARP or a part of different associations, you know.
If you're a part of something like that, let your insurance agent know.
There may not be a Auto Insurance Discount for it, but there's no hurt in asking and seeing if it's there.
So that's number eight.

Alright, so what did we learn?
Well, we went through the eight most common Auto Insurance Discount. That included safe driving, accident-free, credit,
the multi-s, multi-policy, multi-car,
age and gender, paid in full,
loyalty and intro, two opposite approaches there, and association or jobs. So those are the eight most common Discounts
Free course on saving your money with Auto Insurance Discounts All you need to know about all types of Auto Insurance Discounts Free course on saving your money with Auto Insurance Discounts All you need to know about all types of Auto Insurance Discounts Reviewed by A&m on December 13, 2019 Rating: 5
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