By: Gokul Menon October, 24, 2019
The amount of money one can save on car insurance through discounts depends invariably on factors such as driving history, demographic, equipment, and bundling. The following analysis by Gavop reveals the discounts one can earn from the major players in the car insurance market.
Teenagers in Omaha pay $5,030 a year in car insurance. Though they bear the brunt of being inexperienced drivers, insurance companies offer discounts if teenage students have good grades in school. Allstate, for instance, offers stellar discounts to smart students based on their grades and proximity to the school (100 miles). Alongside these requirements, the teen user must be under the age of 25, and must also complete Allstate’s “teenSMART Driver Education Program.” State Farm’s “Good Student” program offers discounts of up to 25% to teenage students who have good grades. Farmers offers similar discounts to students (with good grades) under the age of 25 as well.
Most car insurance companies offer substantial discounts to drivers who have a clean driving record. GEICO offers a 26% discount to drivers with a spotless driving record for five years. On the other hand, State Farm offers discounts when a driver goes three or more years with an accident-free record. With the advent of modern technology in the car insurance industry, Usage-Based Insurance (UBI) is increasingly being used to personalize car insurance. UBI works through both plugin devices and mobile apps. It keeps track of various factors in one’s car, making insurance rates more personal.
Progressive’s SNAPSHOT program offers a significant discount for good drivers. It places its average rate of discount at $145. The DriveSense Discount Program by Esurance is another option for car owners looking for discounts.
HYBRIDS AND ELECTRIC VEHICLES:
Gavop found that Farmers and Travelers are among the few companies that offer discounts on alternative-fuel vehicles. Hybrids and Electric Vehicles are more environmentally friendly thanks to lower emission rates. Farmers offers these car owners discounts of up to 5% in some states.
Other than these significant factors, insurance companies across the board offer discounts to loyal customers. Signing paperwork online, and reducing paperwork also makes some car owners eligible for discounts. It is clear from the above analysis by Gavop that an estimation of discounts available to different car owners depends on numerous factors.
Gokul works as a writer at Gavop. He holds an M.A. in Comparative Literature from the University of Hyderabad and a Bachelor’s in English from Madras Christian College. He has been a part of a couple of theatre groups, like Masquerade Youth Theatre and Theatre No. 59 and enjoyed being a part of Literary and Debating circles in Chennai. Gokul is an avid reader and has presented a few academic papers. He spends more time on Goodreads, than on any other social media platform.