When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.
While it is important to keep your current budget in mind when choosing an auto insurance provider, you may also want to take a moment to look a bit further into the future as well. In many cases you may find that the provider who is offering the lowest current premium on your policy is not the same provider who will save you the most money over the long term. This is because many auto insurance providers offer discounts and other money-saving opportunities that require you to be insured by their company for a certain period of time before you can begin enjoying these savings. In some cases, you may just find that a policy that currently comes with a slightly higher premium but that offers more long-term benefits is actually the better deal. Continue reading to learn more about some of these long-term benefits that you will wan to inquire about.
Accident Forgiveness
One of the worst parts about being in an accident is that oftentimes using the auto insurance coverage that you purchase for this very occasion will actually result in the cost of that insurance going up. Choosing an auto insurance provider who offers accident forgiveness can help to ensure you do not find yourself dealing with this type of rate increase and can potentially save you quite a bit of money in the long term.
Vanishing Or Reduced Deductibles
Having to pay a deductible before your insurance coverage kicks in and covers the remaining cost of your vehicle repairs can be a financial hardship for many people. This is why some auto insurance providers allow you to earn a vanishing or reduced deductible benefit as reward for keeping your account with them in good standing. The way this benefit works is that the deductible you are required to pay will continually get smaller over time until you are no longer required to pay any deductible in the event that you need to file a claim. With this type of policy, you can expect to continue paying the same monthly premium despite the fact that the amount of your deductible has been reduced or eliminated.
Annual Loyalty Discount
Some auto insurance providers will offer a flat percentage rate discount for each year you remain with their company. In most cases the amount of this percentage will increase each year. For instance, while you may only qualify for a 5% discount after the first year, you may be entitled to a 10% discount after your second year with the company. However, these discounts will often have a maximum savings attached to them, so you will eventually hit a point where your discount will no longer continue to grow each year.
Share26 October 2021
