What discounts are used in determining final premium cost ?

Discounts may be allowed by the company you chose for any or all of the following:

• Multiple vehicles on the same policy. This discount is offered to consumers who insure more than one car with the same insurance company. Statistics show that individuals and families that insure more than one car have better than average claim experience.
• Driver Education courses. A discount is given to younger and older drivers who can prove completion of a certified driver-training course.
• Good Student. Students who earn a B average or better tend to be more responsible drivers and may be eligible for this discount.
• Safety devices. Certain safety devices can result in lower cost by preventing accidents or limiting their severity. Discounts may be available for air bags, automatic seat belts and anti-lock brakes. Proof that your car is equipped with these items must be shown.
• Low mileage. The fewer miles you drive, the less chance you have of being involved in an accident. Some companies offer discounts for drivers who participate in car pools or drive to and from work on a limited basis.
• Good driver/renewal discount. Drivers with a good driving record are given discounts by most companies as are those who renew their policy with the same insurer.
• Auto/Home package. Some insurers offer a discount on one or both policies if an individual buys both homeowners and auto coverage from them.
• Anti-theft devices. The installation of devices or systems that deter theft or vandalism may also qualify you for a policy discount. Again, proof of installation is required.
• Dividends. While dividends are not discounts, they do serve to lower premiums. Some insurers offer dividends to policyholders if the sale of auto insurance is profitable for them. These are declared and paid after the policy period has expired and, in some cases, may be applied directly to the following year’s premium.