There are many types of discounts that can be offered on various insurance policies. We will discuss some of them and the things you may be able to do to qualify in further lowering your overall rates. Most agents will ask you questions to see if these discounts apply.
Not all insurance companies will offer the same discounts. NC does regulate discounts that can be applied in some situations due to insurance rate regulations. Over the years the number of discounts allowed has significantly increased. You should take advantage of each and every one that applies as it will not only effect your overall premium in the current term you are in, but in future terms as well.
Homeowners discount- This is a discount given on your policy for simply being a homeowner.
Incident-free discount- This one provides a discount for not having any driving incidents at all, including non-chargeable violations and not-at-fault accidents. It is true these days that a lot of companies charge a higher rate even if you were hit from behind due to this discount being removed.
Proof of prior insurance- If you have had prior insurance for at least 6 months you will likely pay less with most companies. There are higher discounts for being with your prior carrier for 3 or 5 years.
Multiple policies discount- This discount can be applied to all of your insurance policies for carrying your different policies with the same insurance company or insurance agency.
Automatic payment deduction discount- Most carriers these days will give you a relatively large discount if your policy is deducted automatically from your checking account.
Paid in full discount- This discount is even higher in most cases and applies to your overall premium if you pay the policy in full. In addition, you will avoid payment service charges each month on your insurance.
Security system discount- This applies to your home insurance policy and will provide a credit to your premium if you can provide an alarm certificate from your security company showing the home alarm is monitored by a central station alarm.
Claim free discount- Applies when you have not had any claims for a specified period of time, usually 3 or 5 years.
Paperless discount- Most companies that are set-up to deliver bills and other documents through e-mail instead of through the US Post Office will provide a discount for choosing this method of delivery.
Good student discount- This discount is provided by insurance companies through various criteria giving a reduction in your premium for drivers that are good students.
Air bag and various safety equipment discounts- Auto policies will provide discounts for certain safety features on your automobile. These are usually automatically generated once your VIN is provided.
Claim free renewal discount- Certain companies will give a discount for each renewal that you are claim-free and in some cases they may offer a diminshing deductible.
Rider association discount- Motorcycle policies will often give a credit if you belong to a rider association.
Safety course discount- Certain safety courses that you have completed will lower your rates such as a motorcycle safety course.
Pleasure use discount- If you use your vehicle for pleasure use then you will likely get a reduced rate.
New home discount- The age of your home can play a factor in your overall rate. Newer homes receive better rates in most cases.
Good credit discount- NC does allow reduced rates depending on your overall credit score. The credit score that is run is a soft hit on your credit and will usually not effect your credit score in any way. If you have excellent credit then you will see a large decrease in your overall rate and this is typically one of the largest discounts of the ones we have discussed.
These are just some of the more common discounts that can be applied on all types of insurance policies. If you stack these discounts then it can make a significant difference in your overall rate. It is good practice to ask what discounts can be applied on each of your insurance policies when you are getting an insurance quote.