If you’re searching for affordable car insurance, here are a few things to consider: how to find good driver discounts, utilize usage-based coverage and take advantage of rental car discounts.
Usage-based insurance
Usage-based car insurance is a type of policy which bases your premium on driving habits. The program was created to encourage safer driving habits and lower premium costs for policyholders.
Most major insurers provide a usage-based discount. State Farm Safe and Save, for instance, rewards safe drivers with lower rates based on hard braking, cornering, acceleration, and phone usage.
Programs such as this one can be found in many states. Plus, certain companies such as USAA offer a locked-in discount that makes it ideal for people who drive less than 11,500 miles annually and frequent military service members.
Many insurers track their customers’ driving habits, including miles driven. This data can be used to estimate how much damage a car accident might cause and what amount the insurance company must pay out-of-pocket to fix it.
Multi-car discount
Multi-car discount auto insurance is an excellent way to save money on your vehicle insurance premiums. In fact, it could cut up to 25% off the cost of insuring multiple vehicles individually.
Auto insurers typically offer multi-car discounts, though the details vary between companies. Some carriers limit these discounts to certain numbers of vehicles or may only apply them to cars registered under one name. It’s best to consult your insurer about which option works best for you in your specific situation.
Some companies provide a 10% discount on multi-car policies if you add a new vehicle midyear. Although this may not be a significant savings, it still helps save you money each month.
Some companies may provide bundling options, enabling you to purchase multiple policies from one provider at a time. This can make managing your insurance and payment simpler.
Good driver discounts
A good driver discount is a reward given by insurance companies to good drivers who are considered low risk. These discounts can reduce car insurance premiums by 10% to 30%.
Finding a good driver discount requires shopping around. Different insurance carriers offer various discounts, some specific to certain coverages while others provide discounted rates on all policies. Shopping around will help you find the best deal possible!
Some insurers provide discounts based on a certain number of years without claims, which are usually applied during renewal of the policy.
Some companies reward safe driving by offering telematics programs, which monitor drivers’ habits. This can be an invaluable resource to track your progress and refine techniques.
At-fault accidents can increase your insurance premiums
After an at-fault accident, your car insurance rates may go up. But there are steps you can take to minimize this impact on your premiums.
First and foremost, notify your insurance company about the accident. They will review both your driving record and claims history, potentially offering discounts if you’re a good driver.
You may want to consider switching insurers in order to obtain a better rate. In states that lack fault laws, for instance, you may be able to locate an insurer who won’t hike up your rates after an injury that was not your fault.
Prevent any new accidents by exercising caution. Your provider may use your credit score when calculating premiums, and having a low score could result in an increased rate.
Rental car insurance
Before renting a car, make sure you understand what coverage you’re eligible for. You may be surprised at how many benefits are included. There are various options when it comes to rental car insurance – the best one for you depends on your individual requirements.
Liability insurance is the most basic form of rental car insurance and required in most states. While this coverage provides some protection, it won’t suffice if an accident occurs. A higher deductible can help reduce costs in case of an accident.
Another popular trend is using credit cards to pay for car rentals. If you have a card that provides this benefit, however, be aware that coverage may take several days to begin taking effect.