Insurance discounts that come with time
Of the four classes of insurance discounts, the discounts that come with time are the ones that you don't have any influence over. However, there can be cases where you can alert your agent to the discount if you weren't already receiving the credit. Know what they are and review your insurance policy to be sure you rate is as low as possible.
The four classes of discounts are as follows:
- Discounts you can receive right now
- Discounts that will come with time
- Discounts that will come when making your next purchase
- Discounts due to Situation / Employment / Lifestyle
Discounts that will come with time:
When insurance companies discuss discounts, they often pitch discounts that will come with time. Many of these policy discounts will come if certain circumstances are met or maintained.
- Renewal Credit
An example of an insurance discount that will come with time is a policy renewal credit. Insurance companies have long offered renewal credits as a way to reward loyalty from policyholders and to make it more difficult for other companies to win the business of an existing customer.
- Credit Score
Credit score is a major insurance rating factor. The better (higher) credit score that you have, the better rate you should qualify for. If your credit has improved over your policy term, you should ask your agent to check for a better rate on your next renewal. An improved credit score should qualify you for a lower insurance rate.
- Age of Driver
As you get older, your insurance rates will move lower (all else being the same). There are some pretty common break points among insurance companies, but with sophisticated underwriting models, the credit amounts are coming at just about any age. Typical break points are at the ages of 21, 25, 30, and 50/55.
- Age of Homeowner
Many companies will also offer you a discount on your property insurance if you are a retiree. A property that is occupied all day is less likely to suffer loss, or a possible major loss will be kept to a minor one when discovered quickly.
- Retired Credit / Mature Driver Credit / 55 and Alive Credit
If you are retired you may qualify for a reduced rate. Be sure to check with your company when you reach 50 or 55.
Be certain to communicate with your agent. An insurance agent is there to guide you. Simply reviewing your insurance rates every couple of years will save you money in the long run.