Policy discounts are discounts offered by insurers to retain you as a customer. Driver discounts are offered to drivers who pose a relatively low risk to their insurer based on characteristics such as age, driving history and annual mileage. In addition, there are discounts on vehicles for drivers who have additional safety technology in their car. For example, California requires insurance companies to offer at least a 20% discount to all drivers who have been continuously insured for at least three years and who have one point or less on their driving record.
Group car insurance plans can also allow for greater flexibility when it comes to the payment method. Several insurers offer discounts for cars with alarms, LoJack, or steering wheel locks, which can help prevent car theft. Most insurance companies clearly advertise their auto insurance discounts, so you should always check your insurer's website to see if there are any discounts you can qualify for. Homeowners are generally offered a discount on car insurance because they are considered to be financially stable.
Allowing an insurance company to track your actual driving habits, usually through a device connected to your car or a smartphone app, can offer substantial savings. To encourage loyalty to your employer and to the auto insurance company, your car insurance policy could also be cheaper the longer you stay employed. Most insurers offer customers an initial bonus for changing their coverage from another insurance company. The 10 biggest insurance companies offer a good student discount, and the requirements are generally the same among insurers.
Perhaps the biggest benefit of getting car insurance as part of a group rather than as part of an individual is the cost. The best way to save money on car insurance is to lower your base premium by taking steps to reduce your risk as a driver. The group car insurance rate may be cheaper than an individual rate in general, but you should still consider other factors that are as important as a low premium. They may be able to get a good deal through the provider they use for health insurance or commercial insurance.
While you might be able to keep the same type of coverage and level of car insurance with the same insurance company, you can probably bet that your rates will increase and you'll no longer enjoy the benefits of being part of a larger group. Esurance offers discounts for combining car insurance with a renters insurance policy and for safe drivers who use the company's DriveSense app.
