Auto insurance is one of the necessities that most of us will have to have as long as we drive a vehicle. Like energy or phone bills, your car insurance premiums should be included in your monthly budget as coverage is required in most states. Unlike your other bills, however, auto insurance companies set premium rates based on several factors such as your driving record, age, gender, credit score, location, and type of vehicle. The company will then determine your premium based on your risk classification.
As with many other things these days, the cost of insurance can be expensive. The average driver in the U.S. pays around $133 per month or $1,600 per year for car insurance coverage. The average rate, however, is based on a middle-aged driver a good driving record. Depending on your situation and driving record, you could pay significantly more or less than the average for auto insurance coverage. Drivers with various traffic violations or accidents on their record could see an increase of 15 percent or more depending on the offense.
The majority of states require that all drivers purchase a minimum amount of liability insurance to operate a vehicle on the road legally. While this is the requirement in most states, many drivers decide to purchase additional policies to provide more coverage. Liability insurance is designed to cover other drivers on the road. If you are involved in an at-fault accident, your liability insurance will pay for the other driver’s bodily injury and property damage claims. Liability coverage, however, doesn’t protect you or your car if you cause an accident. As a result, insurance companies offer collision and comprehensive coverage to protect you and your car no matter who is at fault.
Comprehensive and collision coverage is also known as full coverage because of the protections that these policies offer. With expanded coverage, however, comes larger premiums. If you have a violation on your driving record and carry full coverage, you could be paying some of the highest rates. Even if you have a clean record as a safe driver, full-coverage protection can still be expensive. The good news is that most insurance companies offer some discounts to help lower your rates.
Progressive insurance is one insurer that offers various discounts to help policyholders significantly lower their rates. So, what discounts does Progressive offer? If you are interested in a Progressive insurance policy, you may qualify for loyalty discounts, driver discounts, or other options for rate reductions.
Like many other insurers, purchasing multiple policies as a Progressive customer will allow you to lower your auto insurance rates. Progressive offers an average of a 5-percent discount for having two or more policies with the company. Having your auto insurance and homeowner’s insurance with them will give you a discount. You can also save around 4 percent off your rates if you insure more than one vehicle with your policy.
Progressive has joined the trend of offering discounts based on your driving habits. With their snapshot program, you can receive a special rate based on your reported driving habits through an app. Additionally, Progressive offers discounts for teen drivers, academic performance, long-distance students, and homeowners. On average, these discounts could be up 10 percent off.
Progressive also rewards their policyholders with discounts for things beyond driving habits and policies. If you receive a quote online, sign your documents online, or opt for paperless billing statements, you could receive discounts ranging from 7 to 10 percent. You could also save on your Progressive policy if you pay the premium in full or set up automatic payments.
Auto insurance rates can be expensive. If you shop around, however, you can find companies like Progressive who offer various discounts to help you lower your premiums.