The Good Driver Discount can be made available at any time, but it can also be taken away. Some insurance companies opt to make this a progressive discount. The longer a driver goes without filing a claim or receiving a ticket, the lower their insurance rates will be. Some companies will lump this in with the defensive driving discount.
If a driver is willing to take a class on defensive driving, they will be a safer driver overall.
This is an ideal discount for families with more than one vehicle. Car insurance companies love to make money, and if you need insurance on more than one vehicle, they can afford to knock a percentage off. This will encourage families with children who have vehicles to put them all on one plan. It will make your life easier because there will only be one bill to stay on top of.
This discount applies to families who carry their life, home, and auto insurance through one company. The Insurance companies, again, will profit from the multiple policies and the family will as well. Defaulting on one insurance payment will put multiple aspects of their life in jeopardy. It is like an insurance policy for the auto insurance company.
If the vehicle you are insuring has safety features, you can cash in on these discounts. Various features that would fall into this category include: ~ Automatic Seatbelts ~ Airbags ~ Anti-theft ~ Anti-lock brakes.
A few companies will offer speciality discounts for those who serve in the military. It is their way of saying thank you for the service given, and the sacrifices made.
Knowing the Real Minimums
Shopping for vehicle insurance online is easier than doing it in person. That is because you can have different Internet windows open to keep information handy. Good to go insurance offer you quotes based on their “basic” minimums. These are what they feel is best for your family and driving habits. However, they may not be the minimums you need.
Each state will have a set minimum to register the car and drive it legally. Almost all states require liability insurance. This is the insurance that covers the other driver and their property in an accident where you are at fault.
The states that do not require the liability insurance do require a waiver to be signed in order to drive the vehicle legally. Some states will also require a small amount of collision insurance, specifically to cover those in the car when an accident occurs.
You can find the requirements for your state on the Department of Motor Vehicle’s website, or by calling them.
Car Loan Minimums
The most important minimum to keep up with is the minimum for your car loan. When you purchase a new or used car and take out a loan, they will want assurances that the vehicle is cared for. Most banks require collision and liability insurance, but some also require comprehensive.
If you purchase a used vehicle, you will want to adjust your insurance minimums as soon as you have paid off the car. You do not want to be paying more insurance than you have to, especially if your car is not worth the deductible.