Car Insurance tacks on a lot of unnecessary discounts to their bills. I should say car insurance companies give unfair discounts to certain clients. If everyone paid the same amount for car insurance and the people that have the most wrecks and claims pay more shouldn’t that cover the cost of insurance? People who get into wrecks or have a lot of previous claims tend to have repeated claims, so charge them more.
Car insurance costs are overinflated to be able to give discounts to a select group of people. The people that get car insurance discounts have more than one vehicle and the discount is called a multi-car discount. Does one person need more than one car to drive? Obviously, if this person has multiple cars they are planning on a problem so they shouldn’t have a discount for that.
Car insurance companies also give discounts to drivers that are married. I didn’t know driving a car responsibly required you to be married. Obviously, insurance agents haven’t ridden in vehicles with the spouses fighting or distracting each other from driving. Car insurance should actually cost more for spouses if they ride in the same vehicle.
If you own a home car insurance companies give you a discount on your car insurance. You don’t even need to have house insurance with the same company that you have car insurance with in order to get the discount. What about all the people who have lived in the same place for years that are renting? Shouldn’t they get a discount too for being stable? You aren’t necessarily less of a risk just because you are purchasing a house. Need I remind everyone of all the people that purchased houses in the last five years that overpaid for their home and may not be able to get as much money out of it when they move or sell their house. They made a poor decision purchasing a home and all those people that stayed as tenants investing their money made similar decisions. What’s the difference?
Did you know you get discounts on the type of car you are insuring? If there is a security device you get a discount. Some insurance companies still give discounts if your car has ABS. If you own a convertible but have a lock on your steering wheel you get a discount.
Credit has a lot to do with the price of your insurance. When the insurance companies ask for your social security number they are running a credit check and if your credit score is high they will give you a good rate. If your credit score is low your insurance automatically goes up about $200-$500. I know this from personal experience.
Wouldn’t it be easier and more sensible to lower car insurance and not worry about discounts? If your insurance is less then you don’t have to worry about giving discounts to entice customers to buy your insurance. One of my favorite commercials used to be for Nationwide car insurance because after driving so long without any accidents they give you a check. The cost of the insurance is overinflated and needs to be lowered if they can offer this bonus to everyone in advance and then take it away if someone has a wreck.
Discounts offered on car insurance include:
- Good credit discount
- Good student discount
- Multi-car discount
- Homeowner discount
- Marital Status discount
- Car discounts
- Good driver discount
If you are buying car insurance make sure you ask for all the discounts. You could save several hundred dollars.