What Insurance Companies Do Not Want You To Know
In these tough economic times, people are trying to cut corners in many different ways, especially when it comes to dealing with their vehicles. People are traveling less, waiting longer to fix problems, searching around for the cheapest gas, and/or buying more fuel efficient cars. Cars are a big money investment, particularly car insurance. Did you know that car insurance companies have a large amount of discounts available to their customers? These discounts can drastically reduce the amount a policy holder must pay annually for their car insurance.
Although these discounts are available, they are not automatically offered. Accordingly, to take advantage of them, you often must be proactive and ask for them. It has been estimated that policyholders overpay for automobile insurance to the tune of millions of dollars per year based upon their failure to ask for discounts that are available. When shopping for automobile insurance, remember to ask whether you qualify for the following discounts. Of course, discounts vary from locale to locale and from insurer to insurer.
The first discount you should ask about is the no claims or renewal discount. This discount, which is perhaps the most widely known discount, is offered to drivers with a clean insurance claims record. So, over time, and up to a delineated amount, your percentage discount will increase, so long as your insurer has not paid any claims on your behalf. Another important discount to ask about is the anti theft device discount. Auto theft in this country causes the insurance companies to pay out hundreds of millions of dollars a year for claims. Any device or mechanism that reduces the probability that your automobile will be stolen may result in a discount to you because the risk of a theft claim is reduced.
Another discount is the advanced driver?s discount. The idea behind this discount is that the more experienced you are behind the wheel the less likely it is that you will be in an accident. Even young people can take advantage of this discount through the advanced driver training course.
Often, the premium discounts associated with advanced driver training and anti theft devices are so significant that the cost for obtaining the training or devices is covered, sometimes several times over. Yet another discount that you should inquire about is the multi policy discount. The insurance companies are for-profit companies and want as much of your business as they can obtain. For this reason, many will offer a discount if you obtain your automobile and homeowners? insurance through the same carrier.
Similar to the multi policy discount is the multi vehicle discount. If you utilize the same insurer to provide coverage for more than one vehicle, you may be entitled to a discount. And, if you drive your vehicle 5,000 miles a year or less, there is a low mileage discount to which you may be entitled.
These are just a few of the discounts offered. When considering discounts, remember that the insurers will typically reward you (in the form of reduced premiums) for anything that reduces their likelihood of a claim or that increases the amount of business they do. However, because discounts are not always offered up front, it is important to be proactive and ask for any that you believe you might be eligible to receive.
Susan Reynolds is a content coordinator for a leading South African Insurance Provider that specialises in Car Insurance Policies.
