How to get the biggest car insurance discounts

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Are you looking for the biggest car insurance discount? By the time you finish reading this article, you will know how to leverage all the available discounts to your advantage.

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Buying car insurance can be expensive, but should it be? Well, you can reduce your premium by availing the discount.

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When you contact a car insurance company, always be sure to ask about available discounts. Each insurance company can offer you a discount depending on what you qualify for.

You can deduct up to 40% of your total policy cost depending on your eligibility, type of discount and insurer.

How to get the biggest car insurance discount
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According to Insurance Information Institute And Investopedia, following are the ways to get the biggest and best car insurance discounts:

1. Shop Before You Buy

It is certainly beneficial to shop around and compare car insurance quotes. This is because prices vary from company to company. The best decision you can make is to get at least three price quotes from different companies.

You can call insurers directly or get information online. For example, Geico, State Farm, and others can help you get a quote free.

Keep in mind that price is not the most important thing. Before buying a car and seeking out insurance, ask your friends and family for recommendations. If you would like more information about the company you are considering, you can always contact your state’s department of insurance. Also, if you have any specific questions, you can speak to the insurance company directly.

2. Group Insurance Discount

Some companies may offer you a price cut with a group plan. Such group plans may be available to you from your employer, clubs, or associations that you are a part of.

Be sure to ask your employer to see if a group insurance discount is available to you.

3. Multi-Policy Discount

Also known as bundling, this is still one of the most important discounts you can get in 2021. Bundling your insurance policies means buying at least two types of insurance from the same issuer. To give you an example, you can buy auto and home insurance, which will usually offer you the biggest multi-policy discounts. At insurers like Allstate, discounts can reach up to 25%.

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Of course, you can also bundle other types of insurance policies like life insurance and auto insurance, but you usually get a small discount for this. Rarely will you be able to strike a better deal with two different insurance companies. So, do you have a home? If you do, you may want to consider an insurance issuer that can package your home and car policies.

4. Multicar Discount

Another important discount is the multicar discount. If you insure two vehicles together, you may pay a lower rate than if you insure two vehicles separately. Buying an insurance policy for two or more cars from the same issuer will give you a multicar discount, which can go up to 25% with some insurers. Of course, first, you should ask the insurance company if they provide this service.

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5. Nice Student Discount

This discount is only for full-time students with good grades. Typically, you need at least a 3.0 GPA or higher for high school or college students. Issuers that offer good student discounts want you to prove your grades in some way. Those discounts can be up to 25%, and you must be under 25 to qualify.

In general, younger drivers pay higher rates. That’s why some insurance companies reward good students with discounts, assuming that a responsible young driver at school drives responsibly. The statistics prove this to be true.

6. Homeowner Discount

You may be surprised to learn that you can get auto insurance discounts when you own a home. Insurance companies give this discount even when the customer buys home insurance from another company. This is because landlords tend to be more stable than renters.

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If you are a homeowner, you can claim this exemption and combine it with the multi-policy exemption to get maximum results.

7. Customer Loyalty Discounts

If you are a long-time customer or hold more than one insurance policy, you can get rewards for your loyalty. You may qualify for a discount when you transfer one of your insurance policies to your auto insurance company.

A little advice about loyalty discounts you should be aware of: Car insurers use a practice called price optimization. They charge higher rates from their loyal customers because they are not likely to change companies.

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For this reason, it is essential to compare auto insurance rates regularly. This is because even if the loyalty discount is in place, your final rate at your current company may still be higher.

Review your insurance policy annually

Remember to review your car insurance at least once a year, talk to your car insurance company, and ask about other discounts. Even though the discount saves you money, always remember to look at the total cost. This is more important than the number of discounts you get.

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Remember this last piece of advice: The best way to keep your premiums down is to maintain a clean driving record and a good credit score. These two factors can save or cost you a lot of money.

this story originally ran KBB.com,

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