When looking to save money, lowering your monthly insurance payments can be a great option. But how exactly do you lower your monthly bill without losing your coverage? Many car insurance providers are now offering discounts to safe drivers. If you are able to secure such a discount it can end up saving you hundreds of dollars over the course of a year.
Who Offers This Discount
You may have seen advertisements on TV from Allstate that promote their ‘Safe Driving Discount’. They actually send you a bonus check if you go a certain time period without any traffic violations or accidents. The check varies in amount based on your monthly bill, but can often been in the hundreds of dollars. Technically, you are still paying the same amount for your monthly insurance but you receive a check at the end of a allotted time period. It is essentially in the form of a rebate.
Nationwide also offers a similar program for good drivers. Their program features a ‘vanishing deductible’. When you become a customer and have a good driving record overtime, the deductible you owe if you are in an accident is lowered. The time period to lower your deductible varies based on how long you have been a customer and your prior driving record.
Defensive Driving Courses
Another way to save money is by taking a defensive driving course. Many car insurance companies offer discounts to individuals who take a defensive driving class. These classes usually last a few sessions and are held both in the classroom as well as in the car. In this class you will learn to be a better driver and ‘watch out for the other guy’. Different tactics are taught such as communication strategies, when to yield or be aggressive as well as being aware of your blind spots and slowing vehicles.
Why Are Discounts Offered?
The less likely you are to get in an accident the less likely you are to cost the insurance company any money. If you happen to get in an accident that totals your car, your auto insurance provider may owe quite a bit of money. But if you have a good record and take defensive driving classes, you are a lower risk to the insurance agency. They actually make the most money on good drivers, so insuring high risk drivers is not something they are looking to do.